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No.035,
Nov./Dec., 2003
Social Connections in China: Institutions, Culture,
and the Changing Nature of Guanxi.
Edited by Thomas Gold, Doug Guthrie and David Wank.
New York, N.Y.: Cambridge University Press, 2002. 277 pp.
In Chinese
"Guanxi" (which means connections) has entered
the English language and if you do a search on the Internet, you will
receive hundreds of references. It is probably the most used word for
people trying to understand how societies in mainland China, in Taiwan,
Hong Kong and Singapore work. As a matter of fact, wherever there is a
Chinese community, guanxi is an inescapable word when you want to do business.
It would not be a surprise if one-day guanxi were entered into the English
dictionary. The authors of this book have mostly agreed that it is a phenomenon
in itself and in relations to all aspects in Chinese society around the
world. But in China, guanxi works from the top leadership in politics
to the lowest level in a village. This is where sociologists usually begin
their research.
"Conventional wisdom among Chinese and foreigners holds
that in the People's Republic of China, guanxi is absolutely essential
to successfully complete any task in virtually all spheres of social life,"
the authors say in introducing the book, which is a fair warning considering
societies in the Western world also function through personal connections
or networking, but in China guanxi has become a science.
One aspect of guanxi is in the form of patron-client relations,
which many authors say is in response to a situation in which powerful
officials have control over access to jobs, housings and promotion. This
example could illustrate the magnitude and impact of guanxi in politics
where the older leaders hold the key to the future of younger generations
seeking advance in the ladder of political power. Whether it has anything
to do with culture and history, guanxi is an ongoing debate as scholars
have tried to understand the phenomenon and by the same token also raise
more questions about it.
"Many of these studies have demonstrated how Chinese
people have used guanxi to cope with the lack of the rule of law and the
arbitrary and discretionary nature of the use of power," the book
says. Even without reference to guanxi, the authors say that the elite,
factions and interest groups have used their personal networks based on
common birthplaces, military services, and places of education or university
as a way to seek protection, career advancement and jobs. This situation
is seen strongly during the difficult years of the Cultural Revolution
when many traditional institutions in society have collapsed, leaving
individuals in search of the best way to survive. That way is the ties
they have through connections.
Lisa A. Keister, a professor of sociology at the Ohio State
University, explains the role guanxi plays in organizing social and economic
interactions in China. That role is examined in the way the system of
lending and trade relations works and in the way buyers and sellers do
their business. She says the communist authorities launch the economic
reform by rebuilding the lending and trade relations among firms that
are doing business. She says that guanxi is found to have influenced the
decision-making process among the firms that are carrying out the lending
and trade relations. She says business managers cultivate social relations
in order to build social indebtedness and gain advantage over lending
and trade.
"In China, economic actors are often characterized as not
simply recognizing and using social relations to their benefit in economic
exchange, but researchers and practitioners alike quite often portray
the Chinese as deliberately and strategically manufacturing social relations
for the purpose of economic gain," Keister says. She cites studies
by other authors who believe that family ties, ties with close friends
and even weak ties with relatives are also considered guanxi. Those authors
also think that guanxi is used whenever there is uncertainty in the business
environment or in regulations, or to overcome the impact of Western ways
of doing business through signed contracts.
Pitman B. Potter, a law professor who is specialized on law and legal
culture in China and Taiwan and who is the director of the Institute of
Asian research at the University of British Columbia, says in his study
of guanxi and the Chinese legal system that China's socialist legal system
and the traditional Chinese practice of guanxi complement rather than
conflict with each other.
"Thus the complementary relationship between guanxi and law will
continue to characterize the Chinese legal system for the foreseeable
future," Potter says.
While trying to analyze guanxi, the authors have taken the readers and
the curious to different levels of society to show how it works and is
structured.
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