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Rethinking Chinese Business Networks: Trust and Distrust in Chinese Business

In: Chinese Business

Author

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  • Chee Kiong Tong

    (Universiti Brunei Darussalam
    National University of Singapore)

Abstract

The central questions dealt in this chapter are not whether the Chinese emphasize guanxi relations, but rather, what are the origins of this particular mode of doing business. How do you explain for the preference to do business with familiar people? How do you account for personalism in Chinese business dealings? The chapter argues that the historical, institutional, and environmental contexts that the immigrant Chinese businessmen found themselves in lead to a situation of distrust and subsequent dependence of family and kin to minimize risk and ensure business success through nurturing crucial “mutual dependencies”. The chapter elaborates on the different types of distrust, including systems distrust, racial discrimination, corruption, and unfair trade practices, as well as the business strategies used by the Chinese businessmen to overcome these risks and uncertainties.

Suggested Citation

  • Chee Kiong Tong, 2014. "Rethinking Chinese Business Networks: Trust and Distrust in Chinese Business," Springer Books, in: Chee-Kiong Tong (ed.), Chinese Business, edition 127, chapter 0, pages 97-117, Springer.
    • Handle: RePEc:spr:sprchp:978-981-4451-85-7_6
    DOI: 10.1007/978-981-4451-85-7_6
    as

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