Case Discussion Questions

Case Discussion Questions

1. Why do you think that it is so important to cultivate guanxi and guanxiwang in China?

Guanxi is about building a network of commonly beneficial relationships. This kind of relationship can be used for personal and business function. This is not too different from any kind of relationship you build doing business in any country. It is important to understand that it weighs more to Chinese people than any other country, familiar or unfamiliar with the term or the culture. Chinese value the time spent with them inside and outside of the meeting table. Although it is not the be-all and the end-all of doing business in China, it is important to know how much this is valued by the Chinese people. Guanxi is important because it help any company so that they can get around rules or restrictions that can hinder them from being able to do what they need to do to succeed.

2. What does the experience of DMG tell us about the way things work in China? What would likely happen to a business that obeyed all the rules and regulations, rather than trying to find a way around them as Dan Mintz apparently does?

The rule of law is not as much as important than guanxi or even personal power. Gaunxi has more weigh and is a major key to having a successful business in China. Corporations or businesses who do not know anything about guanxi and follow the law of the country are most probably going to fail in China. Whenever they follow the law, and not have relationships or connections, they will experience red tapes or maybe just will be disregarded on purpose. Companies from other countries do not have a lot of choice but to adapt to this idea if they want to succeed in China. This is important to them and we need to respect that. It will be hard for any company to compete if they do the follow the rules or do not respect guanxi.

3. What are the ethical issues that might arise when drawing upon guanxiwang to get things done in China? What...