What is changing about “guanxi”(relationship) Business?
The literal translation of “关系” (GuanXi) is relationship while in Chinese, the meaning is different, especially in industry. In fact, there still a lot of business is done via relationship. However, with the stronger control on corruption and the change of the way to build mutual trust, “关系” is becoming less and less influential.
Government take action
In July, 2009, 4 Rio Tinto Group employees were arrested by national security agency in Shanghai. It is regarded as a turning point of the relation between government and foreign companies. It shows that China will take more sterner measurement to fight against analogous cases.
Other multinational giants like Alcatel-Lucent,IBM and Simens have also been involved in trouble with bribery scandals in this 2 years.
What will happen?
Stronger compaign from the government against bribery will come in the near future.
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