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II. Do's and Don'ts

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10. Networking

Building a network of personal connections has long been an important feature of Chinese life. It is done through a concept known as kuanhsi (pronounced "guanhsi"), which simply means "relations."

Just like "face," kuanhsi is an important abstract commodity in Chinese society. It can be gained, lost or increased, and it is absolutely crucial for getting things done. Kuanhsi is a social bond between two people, who share an informal pact to help each other. Kuanhsi is a relationship that is nurtured and strengthened over time. With a network of kuanhsi relationships, a person can develop business opportunities, find information and get help in times of trouble. Kuanhsi relationships that go far back in time can amount to very solemn commitments.

Kuanhsi is established through shared bonding experiences, and it lies at the heart of the wining, dining and karaoke singing that plays so big a part in Taiwanese business culture. Two business people who are interested in striking a mutually beneficial deal must first engage in kuanhsi-building rituals, which provide a foundation of trust for their future interactions.

The process may also involve you in a good deal of "kuanhsi gifting," which makes for a constant flow of watches, chocolates, cognac, cell phones, and so forth. Also popular is kuanhsi golfing.

Some foreigners are surprised to discover that Chinese friends may call upon them for special favors. But it is also good to know that your friends will take their obligations to help you very seriously.

The tradition of kuanhsi helps add a personal touch to otherwise professional relations. Especially if you visit Taiwan for business, it's smart to jump right on in the kuanhsi game.

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