Guanxi. The idea of connections. The idea that there are relationships. Guanxi, the best way to understand Guanxi is to think of a balance sheet. A balance sheet that I encourage you to roughly keep in balance, where doing a favor for someone builds up your side of the balance sheet. So where you can call in an IOU, if you will, later on. One of the tricks often used by skilled Chinese negotiators is to give you favors, is to create situations for you which result in you becoming indebted. Once you're indebted, you may say, OK, I understand what they've done, and I'm not going to fall for that, but the reality is that they then expect you to bring the balance sheet back to even again. So you need to be very, very cautious. I guess the watch would beware of unsolicited favors when you're negotiating.



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