Long-term orientation, cooperative behaviour and mutual understanding are all characteristics of guanxi. Nevertheless, these characteristics can also be found in western relationship marketing. So what makes guanxi more special? Guanxi is a description for the interpersonal relations between people in China. Its based on the social norms and morality that are conventional in China. The social norms and morality are strongly influenced by Confucianism. We also notice that the legal system in China doesnt work that well and isnt really reliable therefore people only rely on and do business with people whom they know. A guanxi network is a closed network. It means that you only trust people who are also a member of the same guanxi network and that you distrust outsiders. In order to maintain your guanxi you need to have trust and empathy. Trust is needed to maintain a long-term relationship with your guanxi network members because most of the contracts in China are personal oral agreements. Empathy is needed because Chinese people dont communicate their preferences and views publicly because they fear being shunned by others. Its absolutely necessary that you know what other people think and feel in order to keep a long-term relationship with a guanxi network member. In contrast to guanxi relationship marketing is based on legality and rules. Agreements are often written and can be settled with everyone. We can conclude that all settled agreements are based on trust. In China its trust in your guanxi network member and in the West its mostly trust in the legal system.
