“Guanxi” literally means "relationships", stands for any type of relationship. In the Chinese business world it is also understood as the network of relationships among various parties that cooperate together and support one another (exchanging favors). Therefore, it is an important concept to understand in the Chinese society. Regardless of business in China, it is the right "Guanxi" that makes all the difference in ensuring that business will be successful. By getting the right "Guanxi", the organization minimizes problems, barriers and risks; often it is acquiring "Guanxi" with the relevant authorities that will determine the competitive standing of an organization in the long run in China. That is why the correct "Guanxi" is so vital to any successful business strategy in China. Developing the "Guanxi" in China is very time and resources consuming but it is well worth the investment! All the people of the company want to extend their “Guanxi” with suppliers, retailers, banks and local government officials: it will be the key of success at personal and company levels. Chinese prefer to deal with people they know and trust; on the surface, this does not seem to be much different from doing business in the Western world. But in reality, the heavy reliance on relationship means that western companies have to make themselves known to the Chinese before any business can take place; this relationship is not simply between companies but also between individuals at a personal level. The relationship is not just before sales but it is an ongoing process. The company has to maintain the relationship if it wants to do more business with the Chinese. Some suggestions to get the right “Guanxi” for your company: 1- to start, pay close attention to your immediate Chinese network and try to establish good relation with them; they can indirectly link you to new acquaintances and information resources; 2- it does not have to be based on money; 3- treating someone with decency while others treat him/her unfairly could result in a good relationship; 4- building trustworthiness of the individual or the company: for example, it is important to deliver what you promise in time; 5- it should be like being friends, and friends can count on each other in good and tough times; 6- frequent contacts, foster understanding and emotional bonds and the Chinese often feel obligated to do business with their friends first. Since "Guanxi" and relationship could function as an information network, companies with wide "Guanxi" and relationship networks often have much higher performance than companies with little or no relationship with the Chinese. "Guanxi" can take on many forms but not based on money. It is completely legal in their culture and not regarded as bribery in any way. So, there is no need to feel uncomfortable about it. Trustworthiness and following through on promises are very important. Chinese feel obligated to do business with their friends first. However, there are risks with this system, as well: when something goes wrong, the relationships are challenged and friendships quickly disappear. "Guanxi" can also be very one-sided. When "Guanxi" is involved, there is a risk of obtaining an invoice of twice the amount that you bargained for. So, keep a right “Guanxì” is real a key factor for your business success in China.