Chapter 4.3: Networking Practice in China

Wei-ping Wu, BA, MA, DPhil, MIEX, Assistant Professor, Department of Marketing and International Business, Lingnan University, Hong Kong and Li Yong, Deputy Secretary General, China Association of International Trade

Overview

In the study of Chinese business networks, a generally accepted conceptual framework which can give in- depth explanations to help understand the plentiful anecdotal evidence is still lacking. A sound approach should be able to analyse not only Chinese business networks in mainland China but also those in other Chinese communities such as Hong Kong, Taiwan and southeast Asian countries . As recent phenomena indicate , Chinese business networks have gone beyond the geographical, political and social boundaries (Kao 1993). In the rapid economic development in southern China may be recognised the workings of such business networks (East Asian Analytical Unit 1995).

This chapter intends to combine transaction cost theory, network theories and the key Chinese cultural values of different Chinese communities to present a new framework for analysing the Chinese business networks in mainland China, Hong Kong, Taiwan and other Chinese communities regardless of the different economic and social systems in which they operate . It also aims to provide foreign companies in China with some practical advice.