1.4d Renqing (Expert Sharing by Prof CY Chiu, Choh-Ming Li Professor of Psychology, CUHK)

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Do curso por Universidade Chinesa de Hong Kong

China Strategy

14 ratings

Universidade Chinesa de Hong Kong

China Strategy

14 ratings

Curso 2 de 4 em Specialization Doing Business in China

This course is designed to help you, as a strategist of a foreign company, better understand how to develop your China strategy. Specifically, after studying China’s changing strategic landscape, you will focus on mastering three strategic issues: who – the major players in China, how – the entry modes, and where – the location strategy for your China business. This course is aimed to deliver updated knowledge and real experiences of developing China strategy.

Na lição

What’s New? China’s New General Environment

Evidence has shown that the contextual difference or gap between a foreign firm's home country and China is a key reason for business failure in China. This Section helps in developing a better understanding of China's context in terms of its general environmental segments, and a number of strategies to deal with new and updated contextual issues in China. How much does context matter in doing business in China? How do foreign firms deal with new and updated contextual issues in China?

1.4a Key Issue: Cultural Distance4:36

1.4b Guanxi (Expert Sharing by Prof CY Chiu, Choh-Ming Li Professor of Psychology, CUHK)2:48

1.4c Mianzi/Face (Expert Sharing by Prof CY Chiu, Choh-Ming Li Professor of Psychology, CUHK)3:00

1.4d Renqing (Expert Sharing by Prof CY Chiu, Choh-Ming Li Professor of Psychology, CUHK)3:28

Conheça os instrutores

Prof. Xufei Ma
Associate Professor, Director, Center for Entrepreneurship
Department of Management

I think renqing is more like a

relational norm. It is some kind of like

shared expectation on how

you should relate to each other.

So, it has both a relationship component,

relational component as well as

an emotional component.

Renqing is built on the norm of

reciprocity, i.e., I do something nice

to you and then you do something nice

to me in return.

So that is the kind of expectations.

Now, when will renqing be

particularly important in Chinese society?

That is, when you want to, like, be

related to somebody you know,

or do business with somebody you know.

Okay, but they are not really your

immediate primary group members,

they are not your family members,

they are not your close friends.

Okay, and then you really need to

think about how you can develop

some kind of reciprocal relationship with

that person, so what do you do?

You do this by establishing a renqing

relationship with that person.

You give some favor to that person.

And because you give favor to that person,

that person would feel the need to or

the obligations to reciprocate your favor.

Through this exchange of favors that they

establish both a relation as well as

some kind of emotional commitment

to each other.

Now, in the business setting, okay, e.g.,

in China, often times, we observe that

Chinese business people like to like

exchange gifts, give gifts to their

business partners on some major festivals

or some important occasion.

So from the outsiders’ perspective,

this like... sounds like bribery.

But actually this is not.

This is actually a means to establish

renqing with the business partners.

The idea is, now, I extend some favor

to you, I send a gift to you;

so now you owe me some renqing,

you owe me some favor.

And because we are in this business

relationship, I expect that you would

reciprocate my favor sometime later.

And it’s through this exchange of favors,

business partners start to develop

an affective relationship.

They feel that they like each other more.

They feel that they can trust

each other more.

They feel that if they extend their favor

to their business partners, they would

get help later when they need it.

It’s almost like an investment in a

relationship; and this investment

is very informal and it occurs

in everyday exchanges.

Okay, so that’s why I think that renqing

is still very important in Chinese society.

Probably because Chinese society is

not a society that really prioritize

formal contractual relationship when we

do business with each other.

We rely more on this kind of informal

relationship to establish trust, to

establish mutuality in our exchange.

Er, so, that’s my, the reason

why I think that renqing is still very

important in China.

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