Guanxi is the foundation of Chinese business negotiations. The paper explains the meaning of Guanxi and uses it to differentiate between the characteristics of Chinese and Western negotiations in the marketing context. Guanxi is a characteristic of Chinese culture and provides a starting point for understanding the Chinese negotiating style. Western cultures have inherently different characteristics. As culture is so important in the negotiation process, the paper also reviews the five dimensions of culture as outlined by Hofstede (1991) and places these in the Chinese context.
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