The impact of guanxi on industrial growth of China

Guanxi in China is viewed as a cultural concept, which originated from Confucianism. Guanxi means relationship and this book tells how relationship has been of help to Chinese industrial growth. It teaches foreigners in China, the secretes of success when doing business with the Chinese.It found that there are "five cardinal relationships" ( or wu lun) in china. They are the relationships between the government and citizens (between the "ruler and subjects" in the olden days), parents and offspring, husband and wife, among siblings, and among friends. Realizing another cardinal relationship, this study added the sixth one and that is between the buyer and the seller. All economic relationships, including that between the employer (buyer of labour time) and the employee (seller of labour time), belong to this relationship. The study also observed that guanxi practice in China is cultural which extends to the present time. It observed several guanxi principles that guard the practice in China. These are favour (renqing), reciprocity, face (mianzi), trust, ganqing, and ethics.However, It was found that guanxi has brought some untold hardship on the socially handicapped in China