Chinese put a price on trade
Wednesday 28 July 1993
According to a survey of Hong Kong businessmen, the costs of 'gifts' and guanxi inflate the costs of doing business in China by 3 to 5 per cent. The research was commissioned by Hong Kong's watchdog, the Independent Commission Against Corruption (ICAC) amid concern that corrupt business practices that are now thriving on the mainland could have an impact on Hong Kong after 1997.
The report focused on Hong Kong companies which have manufacturing factories on the mainland. Of the 50 companies that completed a questionnaire, 35 admitted paying bribes of HKdollars 10,000 to HKdollars 500,000 ( pounds 860- pounds 43,000) 'They (Hong Kong businesses) face the cultural difference that people in China take guanxi as essential and normal,' said the report. 'It is commonly recognised as a means to get things done.'
The Chinese concept of guanxi is based on the primacy of good personal relations. In a business environment, this means putting considerable effort into establishing a firm rapport with prospective business partners.
At the legal end of the scale this demands lavish banquets with exotic food; but in other circumstances it can mean stashing cash in a foreign bank account in the name of a corrupt official in order to secure the go- ahead for an investment project.
- 2 Why this father didn’t hide his daughter’s heroin overdose in her obituary
- 3 Smartphones are making children borderline autistic, says psychiatrist
- 4 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
Nepal earthquake in pictures: Photos show devastation caused by 7.8 magnitude earthquake
Nepal earthquake: More than 1,100 killed across four countries and in Mount Everest avalanche
Royal baby: Live updates as superbug closes ward at St Mary's Hospital where Duchess of Cambridge is due to give birth
Hermann Goering's daughter fails to reclaim items looted by Nazi deputy during WWII
Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
The sickening truth about food banks that the Tories don't want you to know
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
Rupert Murdoch berated Sun journalists for not doing enough to attack Ed Miliband and stop him winning the general election
£26000 - £28000 per annum + benefits : Ashdown Group: Senior Accounts Assistan...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£22000 - £40000 per annum: Recruitment Genius: This company is part of a Group...
£16000 - £18000 per annum: Recruitment Genius: Are you a a young, dynamic pers...