Tag Archives: Guanxi

CULTURE BASICS

Are Relationships Predestined? They are in China!

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Yuánfèn  (缘分) is a common term often heard among the local Chinese and is strongly tied to the idea of relationships in China, both personal and business. As discussed in a previous article on relationships, in China, there is a strong emphasis placed on building and maintaining networks of personal and business relationships.

Beyond the fundamental importance of relationship networks in China, the idea of Yuánfèn can represent an even deeper meaning for many Chinese.

Through this somewhat ambiguous yet important term, many Chinese people come to believe that some relationships contain a touch of destiny, and as a result, this can lead to even greater commitment with regard to certain relationships.

However, due to the many cultural and language gaps between China and Western countries, Yuánfèn is not a term that many Western businesspeople are familiar with.

Even if Westerners have heard the term, they often do not fully understand its significance. The following article details some of the specific points relating to Yuánfèn in China, as well as how Western expatriates can best apply them to their lives and businesses.

 Defining Yuánfèn (缘分) 

Although the term Yuánfèn is ambiguous and has many different interpretations, there are several meanings that hold more weight than others.    Yuán (缘) by itself means karma or fate; the second character Fèn(分) can mean the division between two halves. When combined, the term Yuánfèn (缘分) can be defined in the following ways:

  1. A relationship that has been predestined
  2. Fate or chance that brings (two or more) people together
  3. A predestined affinity (with a person, place, etc.)

While much of the information available about Yuánfèn through popular sources, including the internet, pertains chiefly to its application in the areas of love and romance, it is important to be aware that Yuánfèn can be applied to any type of relationship.

These additional areas can include relationships of the personal, business, and political persuasions.  Additionally, in colloquial language, it is not unheard of for the Chinese to use the term Yuánfèn to describe their relationship (or lack thereof) with a country, custom, or habit.

For example, Westerners with a great love of China might choose to remark that they “have Yuánfèn with China.” In contrast, a Chinese person who has had to give up smoking may comment that he or she “has no Yuánfèn with cigarettes.”

 The Origins of Yuánfèn 

The origin of the Chinese concept of Yuánfèn comes from an ancient Chinese and Asian idea that two people can be drawn inexorably together through an innate connection in the universe. And although this concept can, especially when translated incorrectly, be construed as akin to the English concept of “destiny,” there are several important distinctions.

First, the inevitability of this link does not, in fact, derive from any god-like figure as Westerners might understand it. Second, it focuses more specifically on two people sharing a strong bond that draws them together, and does not necessarily relate to what they may or may not be fated to accomplish together.

A large part of the significance of Yuánfèn draws upon ideas inherent in the Buddhist faith, which has long been prevalent in Chinese culture. Practitioners of Buddhism believe that all living things are reincarnated at the end of their lives to lead new lives on Earth. By itself, the probability of two people coming together in a world of over seven billion (or in a country of over 1.3 billion Chinese) is significantly low.

When one considers the possibility that two individuals might go through countless incarnations on earth before finally chancing a meeting would make such a meeting (and relationship) even more special and profound.

 Yuánfèn in China Today: Business, Friendships, and Romance

For friends in China, Yuánfèn can be that special element that determines a lifelong friendship. As there is not really a reliable method to determine whether or not there is truly an innate connection between two people, the Chinese chiefly rely on common backgrounds, interests, and their emotional impressions to let them know whether or not they feel they have Yuánfèn with a specific person.

For example, if two individuals working in the big city meet, and upon conversing discover that they are from the same small town, they might feel as if they have Yuánfèn. This would be especially true if they met by chance on multiple occasions.

One common, if non-business-related, area in Chinese society in which Yuanfen is often encountered is in romantic relationships. Two people who meet by chance or through a certain set of circumstances, and thereafter find that they possess strong feelings for each other, often believe that their meeting was the will of the universe.

However, being fated to be drawn together and being fated to end up together do not necessarily go hand in hand. The Chinese have a saying in this regard, yǒu yuán wú fèn (有缘无分).

It means that although two people might have been fated to meet, in the end, they were not destined to remain together. It is a saying commonly used in China when one person wishes to break up with another.

Perhaps more important to the Western businessperson is Yuánfèn’s potential to influence and affect the formation of important personal and business relationships.

Despite an overt focus by younger Chinese people on Yuánfèn’s romantic implications, there are many Chinese within the business community who think of the idea of Yuánfèn when meeting new contacts. Through upbringing and societal structure, many Chinese, especially older ones, will hold key contacts close to their chests, a silo separate and protected from the outside world.

If they say they have Yuánfèn with you, they may be tentatively offering you the opportunity to have a stronger personal relationship with you. This, in turn, can lead to more business opportunities down the road.

What Does This Mean for Westerners?

While the idea of Yuánfèn does not directly affect the way the Chinese go about forming and maintaining relationships, it can certainly offer fresh insights into the thought process that a Chinese person is subject to when meeting new people.

From the concept of Yuánfèn, not only do the Chinese believe that two people can bebrought together by fate, but also that they will be. Thus, many Chinese will, over the course of their lives, be on the lookout for those special or gifted individuals with whom they can or are fated to develop close connections.

In contrast to Westerners, who are used to getting to know people over a long time, especially in the workplace, Chinese people may be prone to making much quicker decisions. If a Chinese business person meets someone with whom he or she shares common business interests,  hobbies, or an emotional connection, they may make a very quick decision to extend their friendship to that person.

Likewise, if a Chinese businessperson gets a bad impression from someone, they may be much quicker to cut all contact or decide against that person in a specific matter. Understand, of course, that the Chinese people in general are still very friendly and hospitable to Westerners.

The concept of Yuánfèn does not usually affect the normal course of forming friends or business relationships. It will, however, affect who the Chinese choose to form especially close and trusting relationships with.

Additionally, as the Chinese economy and society continue to develop, the concept of Yuánfèn may remain more relevant to smaller portions of the overall population. And as Yuánfèn is strongly connected to the concept of relationships in China, Yuánfèn will then continue to matter the most where relationships play a greater role in Chinese business and society.

This means inland areas far away from the modern metropolises (e.g., Beijing and Shanghai), and in local industries dominated mostly or solely by Chinese players (e.g., government and Baijiu/sorghum liquor manufacturers) who rely on strong regional and national relationship networks.

Age can also be a factor; in the author’s experience, it was much more common for Chinese business people born in the 1980’s or earlier to refer to or believe in the concept of Yuánfèn as it might relate to their life or business. Younger Chinese workers, especially those with experience in the West, may not put much, if any, stock in Yuánfèn in the workplace.

To summarize, while Western business people will not be able to count on Yuánfèn in all their dealings with the Chinese, it is by no means something that can be discounted entirely. And because many Chinese use their emotions in part to decide on Yuánfèn, it’s important for Westerners to always try to put on their best face.

One can never know when too casual an attitude or too direct an approach can cause discomfort to the Chinese and spoil a potentially rewarding and beneficial relationship. 

If you’re interested in thoughtful perspectives on China, cross-border work, and how culture, incentives, and organizations shape real outcomes, you’re welcome to subscribe to China Culture Corner and receive future posts by email.

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If you or your organization is navigating China execution or cross-border alignment challenges, I work with teams on an embedded and remote basis. Reach out directly: Sean@SageSightConsulting.com

LIFE IN CHINA, WORK IN CHINA

China Expat Survival Tips: Joining a Chinese Company

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group activeChinese companies in Mainland China are expanding and improving their operations to increase profits and compete globally. Part of this includes sourcing top-tier Western talent for a variety of functions including finance, operations, sales, and marketing. However, for the Western business professional contemplating a move to Mainland China, it is essential to first be aware of the many differences present in Chinese companies. The office culture of many companies in Mainland China, even those operated by Western companies, can cause stress and worry for the unprepared Western expatriate as a result of differences in culture, business practices and unspoken social rules. Research  suggests that at least 30% of  expatriates on assignment in foreign countries  may not complete their entire assignments. It is likely that some of these failures in China are a result of stress and other difficulties brought on by cultural differences. To increase an expatriate’s chances of success and reduce the time required for cultural acclimation, it is a good idea to first be aware of the basic elements at play within a Chinese office environment.

An article published by efinancialcareers lists a number important points to be aware of before joining a company in the Chinese finance industry. In fact, many of these lessons can be applied to Chinese companies in many sectors throughout China. Some of the more widespread issues are listed and expanded on below:

  1. You Need to Understand Guānxì. Guānxì is your relationships with coworkers and the favors owed between you and them. The Chinese make use of gifts, social dinners, and other methods to maintain their relationship networks and navigate the office environment. To get things done in a Chinese company, it is essential to form friendships and alliances with your coworkers and supervisors.
  2. Account for Yearly Bonuses. When accepting a contract at a Chinese company, be aware that your actual salary is based upon 13  months rather than 12. It is  customary in China for all employees to receive a yearly bonus before the Chinese new year equal to one month’s pay.
  3. Don’t Rush Meetings. Meetings can take time in China. On one hand, when meeting with new people the Chinese will want to get to know you first and will not want to get down to business immediately. At internal company meetings, social etiquette can prevent direct communication as no one wants to cause embarrassment. Don’t try to rush things or it is possible to alienate or annoy clients and coworkers.
  4. Learn the Company’s Hierarchy. In a Chinese company there is much more space (or power distance) in a company between the highest and lowest level employees. While in Western companies there can be much more freedom for low and mid level employees to talk and mingle with company executives, this is usually not the case in China. You probably won’t be able create relationships higher than your direct supervisor.
  5. Orders are not Debatable.The leadership model in many Chinese companies is markedly different than many successful Western firms. Chinese leaders are not accustomed to discussing courses of action and getting everyone’s opinion and buy-in. They give orders and expect them to be carried out.
  6. Don’t Cause a Loss of Face. Causing a loss of face can be dangerous in China as it strains relationships. It can also drive away coworkers or prevent a promotion. Also, be careful when criticizing others, or offering up an opinion lest you become a disliked member of the office.
  7. After Work Company Entertainment May Not be Optional. When invited to attend a company dinner or karaoke event after office hours, attendance  is likely expected. These occasions not only offer an opportunity to relax, but also act to reinforce the various relationships within the company. If you don’t attend, it can reflect badly on you and your supervisor may feel you are not demonstrating the proper amount of respect and loyalty for the company.
  8. Expect to Minimize Expenses. No matter what official company policy might be, the Chinese have different ideas than some Westerners on company expenses. For example employees in Chinese companies are expected to be proactive in saving the company money. This might include things such as sharing hotel rooms on business trips, using personal cell phones for company calls,  and providing personal receipts for the company to write off as business expenses. Not complying can cause one to be seen as greedy and not a team player.

For the full list from efinancialcareers’s website including perspectives from local experts in China, the article,  “Ten things to know before you join a Chinese bank,” can be viewed HERE.

All in all, Chinese companies are not so different from Western ones in that they have similar goals; they simply have different ways in which they go about achieving those goals. A solid foundational understanding of Chinese business culture and the Chinese office environment can go a long way towards preparing new Western expats for China and preventing costly mistakes. For more information on the fundamentals of Chinese culture, take a look at the China Culture Corner’s section on Culture Basics.

Thanks for reading!

Do you have any additional tips, advice, or questions about working in a Chinese company? Please feel free to post your thoughts in the comments section below.

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CULTURE BASICS

What is Guanxi – Relationships in China

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What is Guanxi?The phrase “it’s not what you know, but who you know” is well known in Western business circles due to the fact that having the right contacts can provide a great deal of assistance in advancing one’s career and closing important business deals. This idea takes on a much greater significance within China, in which business organizations and social circles are often nepotistic in nature. That is, relationships do not merely supplement an individual’s effectiveness in business and dealings in everyday life; instead, relationships form the foundations upon which business and society are built upon.

Many Chinese business people rely almost exclusively on their personal relationships when conducting business, and protect their networks with a level of devotion rarely seen in Western countries. In the following article, several key aspects of relationships, or guān xì  (关系), in China will be explored with the goal of acquainting the Western business person  with the basic fundamentals of how relationships work in China, as well as how to build successful and fruitful relationships with the Chinese.

The Cultural Roots of Relationships in China

From a cultural perspective, Confucianism (a 2,000-year-old Chinese philosophy) places a strong emphasis on observing the proper relationships as the key to social harmony. The key “Five Relationships” stressed in Confucianism (as well as in Filial Piety, an important concept to the Chinese family) place importance on each citizen in a nation knowing their position in society and understanding the expected behavior inherent to that position. The specific relationships include:

  1. Ruler to Subject,
  2. Father to Son,
  3. Husband to Wife,
  4. Elder Brother to Younger Brother, and
  5. Friend to Friend.

Four out of these five relationships are solely related to family and close friends; it is therefore not surprising that many, if not all, of Chinese guān xì networks are composed of friends and extended family, especially among local businessmen in China’s interior.  From a geographical perspective, the large size of ancient China, coupled with difficult terrain made long distance travel next to impossible  before the arrival of modern transportation.

“Your network of “relationships” is like a bank, “face” is the money, and “giving gifts” is the way in which you conduct your deposits and withdrawals.”

– James Tan, Sales Manager, Manufacturing Industry, China

Chinese culture has also long placed an emphasis on revering, and to a degree, worshiping one’s ancestors. Key to this concept is that in order to properly revere their ancestors, the Chinese found it necessary to regularly pay their respects at the graves of ancestors, or at the ancestral shrine located in the home. These factors led to generations of a single family largely staying in the same area with little migration to other parts of the country. The results of these geographical factors are that many personal and business networks were and continue to be strongest at the town, city or provincial level.

Relationships in China Today

Due to the autocratic nature of Chinese governing systems and methods, there has always been a lack of fair and reliable social and legal institutions within China. Because of this, Chinese people today often feel that they are only really able to truly trust and rely on their closest friends and relatives. For example, as opposed to the relatively fair and impartial courts that exist in Western countries, in China judges can be easily be influenced (or given orders) by high level officials (or influenced by said officials friends).  Thus, when forced to contend with the high-powered guān xì networks of others, in China one of the only defenses is to develop a strong network of one’s own.

Learn More about Guanxi: Yuanfen and Social Relationships

In addition, unlike as in the West, most Chinese business people are not accustomed to “business only” relationships. Rather, they prefer to create a friendly and personal relationship first, and then conduct business afterwards. And aside from cultural preference, there is a strong business reason for doing so. Despite the fact that almost every company will sign a contract at the commencement of a business deal, the actual ability of a company to enforce said contract is many times low, especially for smaller companies. China’s ineffective legal system can take years to successfully resolve cases, and many Chinese firms don’t have the time or money to wait for a favorable resolution. By focusing on developing a strong relationship first, as opposed to a formal and tightly worded contract, local Chinese business people can more easily be assured of a long-term and profitable collaboration.

Advice for Westerners

For the Western businessman new to China, it is useful to remember that your Chinese business partner will likely want to get to know you first before cooperating. This process can take anywhere from a few weeks to a few months, so it is important to allow enough time and not simply expect to arrive in China and sign a contract. And while it might be possible to get around building a relationship in some cases,  engaging in the process with a Chinese business partner will help assure them that both parties can and will share a common ground and understanding.

“Sometimes a person’s personal network is natural, consisting of relatives and old classmates; however creating a relationship with a stranger requires an emotional and financial investment. For example, if I go to the Public security Bureau to apply for a passport, the normal process is 10 days – however if I have a relationship with someone at the Bureau, then I can receive the passport on the second day.”

– Michael Qin, Manager, Energy Technology Industry, China

In order to create successful relationships with the Chinese, it is also important to be able to grasp some additional concepts in Chinese culture. Understanding the Chinese concepts of “Face,” “Giving Gifts,” and “Proper Character”  can not only provide fresh insight into the minds of the Chinese, but can also greatly increase a Western business person’s ability to create strong relationships and communicate effectively . Remember that although many Chinese have knowledge of Western practices and experience dealing with “unenlightened” Westerners, they are still Chinese at heart. Trying to do things their way not only shows respect but also shows your commitment to a long-term relationship in China.

Thanks for reading!

Do you have any more questions on how relationships work in China? Can you share any experiences you have had in China with relationships? Please feel free to post your thoughts in the comments section below.

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