Guānxì is something that I have discussed repeatedly in my blogs because it sits at the very core of my China story. Avid readers will know that my 2011 internship with a Tokyo-based finance company was cut short by an Earthquake. This event kickstarted an incredible journey which took me from Hong Kong through China. Since then, I have lived in 5 different cities, built a business, and started a family.
Whilst I could encapsulate my journey in the entirety of two sentences, it was far from a simple step-by-step process.
Let me assure you nothing could be further from the truth.
In my last two blogs (Part 1 and Part 2), I wrote in-depth about Building a Business in China and how an individual’s status relates to their overall Guānxì. I cannot overstate the importance of Guānxì, and developing strong Guānxì ties was a journey in itself. Throughout this part of the series, I will be walking you through my journey. I will also talk extensively about how Guānxì has played a role in my ability to do business in China.
China is a beautiful country that runs on traditional values, even today. These values interweave into the very core of every decision and interaction within Chinese society. So, as part of my extensive journey, I made it my mission to understand these cultural cornerstones. Not only that, but I strive to live these values every day. This philosophy has enabled me to move to China and truly immerse myself in the day-to-day. As a result, I’ve benefitted from success in my personal and business life.
In this blog, I will run you through the critical parts of my journey. I will also talk about how each situation has been fundamental in initiating, establishing and maintaining my Guānxì.
Bridging the Cultural Gap
I have always been interested in Asia and Chinese culture, so I couldn’t wait to discover Mainland China. Throughout my time at the university, I funded trips to China and worked to bridge the cultural gap. I also set about learning the intricacies of the Chinese business landscape. Here is how…
Over the years, I have encountered many Westerners who have landed roles in China full of ambition and grand expectations. However, while many professionals arrive with the best intentions and feel fully prepared, it falls short if they fail to orient themselves with the people.
China is a people-centric society, and to start building your network; you need to spend time with individuals, giving them your time and attention. Ultimately, this culminates in providing favour-swapping, promise-keeping and kindness. So, as much as you may feel you have your ducks in a row: paperwork sorted, snippets of language memorised, and a handful of history books read, the most critical piece of preparation is cultural immersion.
Of course, it helped that I had a route into starting and nurturing people within my network because I had made friends from China whilst at university in the UK. However, the time and energy that led to cultural understanding and integration resulted from consistent relationship building.
Research is King
After I graduated with my Master’s degree, which focused on the concept of ‘guanxi’ and relationships in China, I took a leap of faith and bought a one-way ticket to Changsha in Central-South China. Although I had little Chinese language ability, I started developing e-commerce and supply chain finance companies with my old school friend. Unfortunately, despite my dedication to understanding the Chinese business process, I underestimated the drive and knowledge required to build a business in China…
Once I had completed my Master’s degree, I jumped with both feet and booked a ticket to China. During my self-funded trips to China, I built further trust with my friend Yu Zhenze and his extended family and friends. As such, I had a perhaps somewhat unfounded confidence that everything would be OK as I had a network basis and my Guānxì status.
However, even with this support system, the move was far more complex than I anticipated, and my first business inevitably failed. Whilst this wasn’t easy to swallow, I picked myself up and dusted myself off. As tough as it was, this acceptance taught me invaluable lessons and even fed into Xìnrèn, which is all about integrity and ability. Although my first business hadn’t worked out, I learnt a tremendous amount and now knew where my pitfalls were. As such, I worked to build the trust of those around me by displaying how I planned to do better next time. This plan helped me build credibility and kick off the next stage of my journey.
“I felt like I wasn’t in control of it from the beginning and felt naive in believing you could just come to China and make money.”
A Stroke of Good Guānxì
After regrouping, I switched my focus to representing UK companies locally in China, particularly around supplier relationships and procurement strategy. I started with a single client in the oil and gas industry, which took me to Beijing and spent two years there. Throughout the pandemic, I was able to provide the support needed by both large and small companies. I officially launched Kinyu SCM in 2020 and wanted to find a way to scale my client representation…
At this point in my journey, I had made a positive impression on the network around me. Luckily, due to a successful investment decision whilst trying to run my first business, I could go on to build something that I was genuinely passionate about. But, as we’ve touched on before, saying you will do something and following through on that commitment adds to the layers of your reputation. I often think of Guānxì as very much like an onion. You must peel it back layer by layer to truly understand it (with hopefully somewhat fewer tears along the way!).
Now that I have established my mission of helping businesses thrive within China, I’m finding it easier to maintain my Guānxì daily. As someone who is genuinely driven by building relationships with people in China, I am determined to keep putting in the groundwork and peel back each layer of the onion.
