The Influence Of Personal Relations On Chinese Business Relations
The empirical focus of this paper is that the role of personal relations has more impact than the rules or principles on Chinese modern business relations. Under the influence of close interpersonal relationship from Confucianism, traditional moral standards, and historical war stratagems, personal relations become the critical factor instead of legal instruments in the business process.
First, Confucianism served as the core value of Chinese society for more than two thousand years and remain its influence on Chinese business behavior today. Interpersonal relationships, a key feature of Confucianism, strongly affect people’s willingness to do business with others. Different from the phenomenon that relationships often grow out of business deals in the West, Chinese business deals usually grow out of personal relationships (Vanhonacker, 2004). Moreover, as a huge part of Chinese traditional culture, gift giving can promote positive interpersonal relationships. However, it can also create bribery in the modern Chinese business environment.
The second reason why Chinese value personal relations is that Chinese businessmen rely on traditional moral standards over laws. According to Confucianism, moral standards in people’s mind can effectively eradicate the problems while laws can only solve the problems superficially. Since the law in China has always been seen as the symbol of authoritarianism, coercion, and lack of trust, it has less effect on influencing…