Monday, September 04, 2006

GuanXi 201

I was reading another book, describing China as a big secret society. During the small agriculture society, there is limit room for GuanXi to develop because people are quite self sustainable. However, when the economic has grown to certain scale, supply/demand driving market is not yet mature and the government has not yet developed an efficient way to liquidify goods/labor, GuanXi is almost the only way to survival.

The book has taken the GuanXi analysis into a second level. We all know that connection is a big part of success, success in making business, getting good jobs, receiving a proper medical attention or sending your kids to the right schools. I think this is true every part of this planet. Chinese world has used it to an extreme, is that all?

The secret social analogy the author has proposed is quite illuminating. In a secret society, honesty and honor are the pillars to build a name. With a name, you can borrow trust, friends, women and wealth without any tangible collaterals. But you put your name on the line. However, chances are you don't need to return those. Being driven by the desire to become somebody, people start to boast, bluff, vainity follows (quite well explain Modern China).

The way GuanXi is built up is quite like an art. It is constructed on top of favor debts. The timing to return the favor and the amount to return are both very critical. The various concoction send different messages to the creditor. For example, if you return it immediately with the equal value, that means you do not want to build up a GuanXi with the creditor. Normally you don't return the favor in equal value, which indicates you and the creditor is merely doing a deal (absolutely not acceptable by Chinese). Taking some time to return the debt tells the creditor that you truely accept his help and geniunly grateful. This might not seem clear cut if this returning goes around several times. However, that was intended effect. The two persons involved know clearly who owns what and how much. GuanXi is then nurished and grown.

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