Doing business in China: is the importance of guanxi diminishing?

Guanxi has been well documented as being an essential part of doing business in China. Yet, as China continues with market liberalisation, there are indications that its strategic importance is set to decline. From a joint venture perspective, this study sought to examine the strategic importance of guanxi when doing business in China. The study found that, although guanxi remains important when doing business in China, a number of factors indicate that this importance may begin to decline. These include China's market liberalisation, outward investment, “guanxi learning” on the part of foreign companies and online intermediaries.