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The art of 'Guanxi': the secret of relationships and business in China

Guanxi is more than just a connection: it is a system of relationships that opens doors and creates opportunities in China

16 April 2025

3' min read

Anyone who has ever dealt with China is likely to have frequently heard of the term 'Guanxi'.

But what exactly is Guanxi and why does it seem to be the secret ingredient deeply woven into the fabric of Chinese society and business?

Guanxi (关系), pronounced 'gwan-shee', literally translates as 'relationships' or 'connections' but in practice it is much more. It is a dynamic system of social networks and relationships that are used to facilitate business and other transactions. A network of mutually beneficial relationships that, when cultivated correctly, can open doors, solve problems and create opportunities that might otherwise remain out of reach.

For us Italians it is not a foreign concept, but for Chinese managers Guanxi is not just a business strategy, it is a way of life. It is the oil that lubricates the gears of social and professional interactions, the invisible thread that binds people in a complex tapestry of mutual favours and benefits, a social currency that can be more valuable than money itself.

How to build the Guanxi? Here is an eight-step guide.

1. Start early and be patient: building Guanxi takes time - often years. One has to start building personal relationships with interlocutors early on and not expect to establish strong connections overnight.

2. Invest in face-to-face and not just professional interactions: prioritise meeting in person whenever possible by sharing lunches and dinners, attending social events or activities together. We have written it many times in this column: in Asia, building trust through personal relationships is everything and is a prerequisite to the achievement of any success.

3. Finding common ground: in these personal interactions, open up by looking for common experiences, interests or connections that can serve as a basis for the relationship and by sharing personal stories and anecdotes. The Chinese are curious and interested, and we Italians are very good communicators; this is an important advantage.

4. Offer help before asking for favours: Guanxi is based on reciprocity, but it is important to give before receiving.

5. Very important: keep promises and commitments because these will be the foundation of the trust we are trying to build. And of course always be transparent about one's intentions, capabilities but also one's constraints and limitations, for example in negotiations.

6. Using intermediaries: in Chinese culture, presentations through mutual connections carry a lot of weight. In fact, very often in the most delicate presentations it is important to 'back up' the appropriate person.

7. Adapt to Chinese communication styles: learn to read between the lines and pick up on non-verbal signals, which in Asia are even more important than verbal ones.

8. Respect 'the face': understanding and respecting the concept of 'the face' not only avoids missteps, but shows cultural intelligence and builds the basis for strong and lasting Guanxi relationships. We elaborate on this in the next article, and in a nutshell it means respecting the hierarchy of the people you are talking to, but also not contradicting or showing disagreement in public, and even less making fun of people. It is a red line that once crossed compromises relationships forever.

In conclusion, Guanxi is a journey, not a destination: building and maintaining relationships is not a one-off task or a box to be ticked. It is an ongoing process to build trust and create mutual value.

On this journey, authenticity is the most valuable asset: while we have discussed various strategies and techniques for building Guanxi, none of them will be effective unless based on genuine intentions.

And finally, Guanxi is an art, not a science: it requires flexibility, patience and a genuine openness to the culture and people you are interacting with. With time and practice, navigating the world of Guanxi will become more natural, allowing you to build stronger and more rewarding relationships in China and throughout Asia.

*Partner at FA Hong Kong Consulting