Trust and reciprocity in American and Chinese business networks
Why do business relationships take longer to establish in China than in the United States? New research explores key differences between the American and Chinese approaches to building networks.
Are your relationships with your coworkers qualitatively different from your relationships with your friends? Are you more inclined to do a favor for a prospective client than for an acquaintance who has little to offer in return? If you are American, the answer to both questions is probably yes. If you are Chinese, however, it may be natural for you to seek emotional support from work colleagues, or to go out of your way to help someone who is not in a position to directly return the favor.
While Americans typically maintain some separation between their personal and professional lives, Chinese tend to establish almost family-like bonds with their business associates. Professor Michael Morris, who has conducted comparative studies of business relationships in different cultures since the 1990s, suggests that this is one reason that business relationships take longer to establish in China. “In China, if you’re going to do business with someone you start by forging a personal, affective bond — you exchange gifts, you have a series of meals together, you may be invited to meet their family. The personal bond paves the way toward a working relationship.”
Foreigners doing business in China learn two words that describe important aspects of Chinese business culture: guanxi, which means connections, and renqing, which means favor. “Though guanxi translates literally as connections, expatriates in China quickly figure out that you don’t build guanxi through the same kinds of networking that you could use to develop your connections in New York,” says Morris.
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