Malcolm S. McNeil was quoted in the American Business Journal article, "The Art of 'Guanxi.'" Full text can be found in the December 30, 2013, issue, but a synopsis is noted below.

Chinese ideas about being connected, or having "guanxi," mean you may need to spend time interacting on a social level before trying to conduct a business deal. Just ask Malcolm McNeil.

Since making his first trip to China in 1993, he has nurtured contacts in industry, government and law, proving to be quite beneficial.

When a client frantically called him from a Hong Kong trade show to say that other vendors seemed to be selling copycat textile prints, McNeil called a government contact that he had worked with in several cities. The results far exceeded his expectations, as the contact went to the police and had the factory making the prints shut down.

"There was no warrant and no lawsuit," McNeil said. "It chilled them from marketing the blouses at the trade show, and it was a direct result of guanxi. My client was thrilled and surprised."

Counterparts in China will have spent their lives building guanxi and the networks can feel like a barrier to an outsider. McNeil advised showing that you and your company are worth getting to know.

"Don't talk statistics and profits so much as longevity, continuity and reliability," he said. "Those are more critical to the Chinese way of deciding to do business with you."

Originally published by American Business Journal.

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