Lee Kuan Yew, former Prime Minster of Singapore, once said “to be part of the Asian dynamism, Westerners do not need to become Asians in culture, in values, or in habits...but it is necessary for Westerners to understand Asians, to feel at ease with Asians and to make Asians feel at ease with them.”
This statement is particularly applicable today for Western companies doing business in China. There is no doubt that China is and will continue to be a global hotspot for business. Yet many Western companies that rush haphazardly into China without fully understanding its business culture and mentality ultimately meet with failure. This webcast presentation first provides crucial information on investing in China and dealing with the recent unionization push and changes to labor laws. It then goes one step further to give insight into communication and management techniques that have proven effective in the Chinese business context.
Guanxi describes the basic dynamic in personalized networks of influence, and is a central idea in Chinese society. In Western media, the pinyin romanization of this Chinese word is becoming more widely used instead of the two common translations—"connections" and "relationships"—as neither of those terms sufficiently reflects the wide cultural implications that guanxi describes.[citation needed]
Closely related concepts include that of ganqing, a measure which reflects the depth of feeling within an interpersonal relationship, renqing, the moral obligation to maintain the relationship, and the idea of "face", meaning social status, propriety, prestige, or more realistically a combination of all three.
At its most basic, guanxi describes a personal connection between two people in which one is able to prevail upon another to perform a favor or service, or be prevailed upon. The two people need not be of equal social status. Guanxi can also be used to describe a network of contacts, which an individual can call upon when something needs to be done, and through which he or she can exert influence on behalf of another. In addition, guanxi can describe a state of general understanding between two people: "he/she is aware of my wants/needs and will take them into account when deciding her/his course of future actions which concern or could concern me without any specific discussion or request".
The term is not generally used to describe relationships within a family, although guanxi obligations can sometimes be described in terms of an extended family. The term is also not generally used to describe relationships that fall within other well-defined societal norms (e.g. boss-worker, teacher-student, friendship). The relationships formed by guanxi are personal and not transferable.
When a guanxi network violates bureaucratic norms, it can lead to corruption, and guanxi can also form the basis of patron-client relations.
Similar concepts in other cultures
Sociologists have linked guanxi with the concept of social capital (it has been described as a Gemeinschaft value structure), and it has been exhaustively described in studies of Chinese economic and political behavior.
Blat in Russian culture
Blat (Russian: блат, blat) is a term which appeared in the Soviet Union to denote the use of informal agreements, exchanges of services, connections, Party contacts, or black market deals to achieve results or get ahead.[1] The system of blat led to formation of social networks similar to Good ol' boy networks in the United States, Old boy networks in the United Kingdom and the former British Empire,[2] or Guanxi in China.[3] Accordingly, blatnoy means a man who obtains a job or gets into a university using connections, or sometimes bribes. In the Soviet republics, blatnoys were very much in demand as it was difficult to gain a post or enroll in some prestigious majors in universities without proper connections.


Wasta in Middle Eastern culture
"Wasta" or "Wasata" (Arabic: واسْطة) is an Arabic word that loosely translates into 'clout' or 'who you know'. It refers to using one’s connections and/or influence to get things done, including government transactions such as the quick renewal of a passport, waiving of traffic fines, and getting hired for or promoted in a job.
In other words, it amounts to getting something through favoritism rather than merit, or what is informally spoken of in English as "pull" from connections (the opposite of "push").Wasta is derived from the Modern Standard Arabic word "wasīṭ"( وسيط) which commonly means medium but also often means something akin to intermediary, intercessor or middle-man.
A Bahraini diarist provides some information about how the practice originated:
“The system evolved to preserve the social structure of the tribe. It allowed for the leadership to distribute the tribe's wealth as they deemed in their wisdom and experience would preserve peace and harmony. They would grant access to opportunities to those most deserving or to those who would otherwise be left behind, at their discretion. It is also important to keep the tribe from weakening itself, therefore internal competition is avoided.”

Sociolismo in Cuban culture
ociolismo also known as amiguismo meaning "partner-ism" or "friend-ism" is the informal term used in Cuba to describe the reciprocal exchange of favors by individuals, usually relating to circumventing bureaucratic restrictions or obtaining hard-to-find goods.
It comes from the Spanish word socio which means business partner or buddy, and is a pun on socialismo, the Spanish term for socialism.The term is particularly associated with the black market economy, and perceived cronyism in Cuba’s state controlled command economy. Socios can be black market operators who "facilitate" (steal) goods that are officially reserved for the state. They can also get someone a job or obtain paperwork.
The system is used by anyone who needs to send an e-mail or print a resume (but doesn't have a computer), or needs paint or cement but has no access to an Office Store or Home Improvement Store. Gary Marx, the Chicago Tribune's Havana correspondent, reports the system works this way: Cubans send out signals they need something, make telephone calls and visit neighbors and friends to find the right person who can get things in motion.The theory of "sociolismo" follows that any person with control over resources could exchange access to those resources for some current or future personal material benefit. Complex networks of reciprocal obligations thus became an important part of the functioning of the Cuban economy.
Daily life involves maintaining the personal relationships necessary to ensure access to necessary goods and services, through unofficial channels or through the official channels unofficially
Good ol' boy network, or "Good old boys", describes a system of social networking alleged to exist among communities and social strata in the United States. These networks are assumed to be located throughout the U.S. and the rest of the Western world. It is sometimes taken to refer to informal legal, judicial, social, religious, business, and political associations among males, ("good ol' boys").
Some negative effects of the good ol' boy network are its exclusion of others, leading to leaders of a community possibly limiting business transactions to other elites,[citation needed] or to friends or acquaintances from within the network, to give friends better deals, and generally to reinforce traditional power structures over any other elements in the society.
For example, economic geographer, Richard Florida, has several publications (2004, 2008) pointing out the concept of 'good old boys network', in contrast of diverse and larger places, where creative work it is allowed.
While generally the Good ol' boy system puts in place those who are incompetent,[citation needed] or at least inexperienced, it can also be a quick way of getting something done.
It is commonly thought of as being a system which is used by white males to keep others out[citation needed], it is also used by other minorities in any situation where they hold majority sway, or within any homogeneous community to maintain the status quo. Diversity notwithstanding, this type of social construct exists around the world, with various methods of association. Mob organizations could be seen as the extreme application of just this social construct.

Guanxi 8.4 of 10 on the basis of 1317 Review.