Law360, New York (March 6, 2008, 12:00 AM EST) -- The image of China as the Wild, Wild East, where companies must pay to play, has become deeply ingrained in the Western mindset. But trying to develop “guanxi” without really understanding its implications will cause your business to be mired in trouble on both sides of the ocean, say experts.
The concept of “guanxi” has gone hand-in-hand with developing business in China since it opened its doors to foreign companies in the 1970s. The word roughly describes a dynamic of personalized networks of influence.
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