- In the west we usually identify distinct types of influence. We even have special words for particular kinds of influence. Nepotism, cronyism, old boys networks, etc. These identify particular types of connection and particular forms of influence. Friendship through a golf club or university hall would be a characteristic aspect of an old boys network, for example. In Finland, you might think of a 'sauna clique' business culture. Also, we think about these types of relationships independently. Someone might be proud of their 'old boy' connections but intolerant of nepotism, seeing one as earned and the other as given. In contrast, guanxi is more of a melting pot. It could mean a lot of things. It's more like the word 'sway' or 'pull' in English, in a networking sense. It incorporates cronyism, family duty, nepotism, friendship, business connections, political power...
- Moral connotations can be completely different. Guanxi is a good thing sometimes, bad thing other times. Giving a key job to your son is bad in a Western company, arguably 'good' in the East. Providing he's not useless.
- You don't leave business networks at the door of the house; guanxi networks permeate friendship/family/business connections. You might not normally introduce a business colleague to a member of your family, in the west. This relates to my earlier point about it being less structured than Western influence systems.
- Reciprocity matters. Let's say I do you a big favour. You pay me back the next day by giving me a set of tickets to get a nice dinner somewhere. By maintaining a balanced relationship we remain friends. In Chinese culture this would be a bit of a faux pas. By repaying immediately and at a similar level to the gift received, you're basically extinguishing the opportunity to develop guanxi immediately - an unfriendly act. Where western relationships tend to be balanced, and quickly, Chinese relationships instead seem to prosper through periods of imbalance, overpayment back, and so on. The scales should not be balanced, they should sway back and forward. This dynamic is characteristic of a good friendship or a good guanxi connection.
Source: sat at the back of a 10-week course on Chinese business studies, during my PhD, and had a friend whose master's thesis topic was contrasting guanxi with western-style 'leverage'. No citations, feel welcome to treat it as hearsay. :)
I don't know what the final dissertation title/theme ended up as, but we talked a lot about guanxi vs other similar cultural behaviours while he was writing it.
Option A) The wife of a former president
vs.
Option B) A former close friend & financial donor to the same former president.
Chinese guanxi looks pretty tame compared to the US race for 'most powerful person in the world'. :-)
In that scene, somebody wants the Don to go beat the shit out of somebody who beat the shit out of his daughter, and offers to pay money.
In response, the Don asks what he has done to make the other guy disrespect him so.
Guanxi is all about building relationships, not mercenary transactions. In asian culture, if you toss somebody some money for a transaction or a favor, you're treating him disrespectfully as an employee.