It is interesting to see comments re mianzi is fading also.
In coming to Kunming at various times since 1999 I have yet to see this in the university or banking sector however my exposure has not been great enough to comment as an expert.
From a bigger picture it seems reasonable to hypothesize that global convergence of business technique is accelerating fast.
With the internet age there is no doubt we are heading in this direction however it then brings the question 'will in ten years times, will there be anything that differentiates doing business in China from doing business outside of China? If so what?

I'll second the following comment from Dudeson.

"It's embedded too deeply in Chinese culture to disappear in less than a decade."

The upper levels of business in China has adapted to accommodate world standard business models BUT the middle and lower levels of businesses lag far behind in world standards without guanxi.

China's leaders recognizes this essential adaptation as Xi Jing Ping's efforts to eliminate corruption.

Westerners see it as "corruption", but "guanxi" is business as usual at lower levels.....

Some good comparisons I have heard over the years.

Chinese drive the same way they play chess - on the lines, not in the box (lanes). Driving is a new (10-15 years) phenomena here in China. But after 12 years I see a significant difference on a daily basis. When driving from Kunming to Dali just about every other car drove on the line 12 years ago, now those are the minority and they are horn blasted out of the way by passing trucks, buses and SUVs - change on an individual and group level.

Religion (Buddhism, Taoism, + Confucianism) have all been intergrated and the average (40 - 50 years and younger) person can not answer simple questions about any of these aspects of religion. People go to temple to rub Buddhas belly and wish for luck and money - that is the extent of their knowledge. Mostly older people (over 60 - 3 generations ago) visit the temples and can answer many questions regarding dieties and practices. I know, I am the Temple king of Kunming and have visited over 256 temples in 5 districts.

Unlike other SE Asian countries where buddhism is a way of life and practiced daily by all members of the family. The tradition is still alive in younger people.

I mention these 2 to show how people and chinese culture are changing rapidly now - Mianzi is another such example.

To be rich is glorious - Deng Xiao Ping - This is all that matters now until it goes to far and the pendulum must swing in the opposite direction (Destruction of environment and destruction of Family values).

I'm not sure why the terms Guanxi and Mianzi get special treatment and referred to by foreigners in it's Chinese term, as though it's something that doesn't exist outside of China, like FengShui etc.

Guangxi (in the business sense) - contacts.

Mianzi - Reputation

These are things I have encountered in other places, home and abroad, and would expect to encounter as parts of human nature. Now, surely this is over analysis on some people's parts.

China's giant state-owned companies have first, and sometimes exclusive, access to the country's resources. They argued that the current system thus inhibits growth in the private sector, which in turn stymies innovation.

www.gokunming.com/[...]

Mianzi and Guanxi seem to be thrown up by foreigners as the scapegoat as an excuse of their own failings or outright bad luck. It could be the first resort to finding an excuse when dealing with a complicated foreign system, and I wouldn't be surprised if I had been guilty of this on occasion too.

But Mianzi and Guanxi are only specifically Chinese if you want them to be.

Hehe - you changed your post before I could send my reply.

Thats exactly the point - they do NOT call it Contacts and Reputation because they feel it is something unique and different and a part of their own unique culture. As Tiger mentioned earlier, it comes from living/doing business in a closed society with little to no mobility.

Since joining the WTO, China has had to change many of its previous values such as shifting from Collective culture to Individual culture (1 Child Policy), Hierarchy was the value of the past and no longer holds true, especially when you have young millionaires who are running the show, Shift from High context communication because foreigners and people from outside your small group do not understand you, and finally the loss of influence from Taoism and Confucianism that I mentioned earlier.

Two other areas have seen a huge change are the notions of relationships vs laws. The west values rules while China values relationships. This went out the window when they joined WTO because the west just cares that the party fulfills the contract and they will easily drop one unrealiable client for a more reliable one. China had to chnage if they wanted to continue doing business with the west. Deadlines are becoming more and more important when dealing with international clients, not so inside China as much. The other is the notion of ascribed status and achieved status. West values what you have done and what you can do now, they could care less what your granpappy did 50 years ago or what your family name is. With mobility, this notion steers more to the western values because other people do not know you or know about you - it is about what you can do (resume/CV).

There was me thinking they called it 关系 and 面子 because they were Chinese.

Let me demonstrate. Have you ever...

Gone to the footy, it's sold out, but know John is working as a steward, give him a call, he opens a gate and let's you and the lads watch from the back of the isle?

Rented Lethal Weapon III from the video shop, but forgot to take it back. You take it back a few days later and John is behind the counter, so there is no punishment.

Drove into the city centre and to avoid a parking fee parked on Johns drive, knowing he's on holiday, now for you it's just a short walk to town.

That or anything similar and you will have been an offender of Guanxi. Ok, on a very small level, but you will have Guanxi'ed all the same.

Now, you'll tell me, but it doesn't go on a big level where you are from. Right, how about when Britain was privatised and it went to people who knew people? How about how it was considered paramount to do something for Robert Maxwell to keep your nose out the press? How about when Blair's son was caught with drugs and nothing happened? How about when members of the Houses of Parliament members were caught with their hands in the coffers and told to pay it back at their own convenience? You know why - Guanxi.

You can find synonyms all you like, but it's Guanxi.

I have no idea what a footy is - must be a term from Zimbabwe.

The other 2 examples you gave are called FAVORS and people have the right to say Yes or No. Favors are just that - favors - they are not mandatory and one is not under any obligation to perform or allow those tasks to be performed. You can get a favor from someone you know but you can not from a stranger. Mobility creates strangers.

The last examples you gave about Britain are wonderful. Here in China and in most other countries of the world, the average Joe on the street is sick and tired of this crap. They are tired of seeing jobs go to friends and family (nepotism) and they begin to call it by its real name - bribery, graft, and corruption. Thank you President Xi.

This is why I mentioned the importance of the internet. Guanxi serves a select few and the majority are tired of this crap and want this outdated system thrown away. They want fairness and equality and guanxi serves neither of these 2 values that the majority think is important.

Appreciate Campo's discussion as well as Napoleon's additions: important to realize that the concept guanxi, and also mianzi, may be particularly important in Chinese culture, but they are by no means unique to China - in some form they are pretty much universal. Often, I think, we as foreigners tend to see that which is significant in China as unique to China, when in fact such behavior is found everywhere - differences are almost always a matter of degree, not a 0-1 distinction. I'm sure most will agree with me, but in practice we tend to create firm distinct categories - as Chinese, and virtually any other nationality, often do vis-a-vis foreigners in whatever culture we are talking about. I don't mean to downplay real tendencies, just to put in a reminder that is understood when we're all thinking but is often forgotten when we are annoyed, impatient, or have particular horns to blow.