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Forums > Living in Kunming > Is the importance of Guanxi in business in decline

Naturally, the changes take place in larger cities first (east) and eventually move west. Kunming is moving at record speeds as it is the hub for transportation (rail) and business with other ASEAN countries.

Kunming (Yunnan) is no longer considered the same as Guizhou or Gansu as it was in the past. Another aspect to look at is the subway lines. Kunming is not a big city yet it has subway lines before other larger cities such as Changsha, Hunan.

In time, business will be more uniform (fair) - it already is more fair.

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Forums > Living in Kunming > Is the importance of Guanxi in business in decline

Yes, these changes stem from 2005 = WTO = business must be done in western ways because China wants their business.

Western influence has increased significantly since 2008 = Olympics = many more foreigners living and working in China now.

The next generation is unlike the previous one because of western influence. To understand China one must look at the USA in the 1950s and 1990s. What took the US to do in 50 years China has done in 10 years so people here are changing rapidly.

To complain was unheard of 10 years ago but legitimate complaints are encouraged now. I am a frequent contributor to 12345 - the Mayors Hotline - they want input from the public and they want to know what is wrong.

Do not forget President Xi's stand on corruption. This has a direct and significant impact on Guanxi.

Again - Guanxi will continue to decline in the future because people can not do in business what they can no longer do in daily life. One can not deny that guanxi still exists, the question is how often was it seen 10 years ago and how often is it seen now - in Kunming.

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Forums > Living in Kunming > Is the importance of Guanxi in business in decline

I had a discussion with an architect about this topic about 6 years ago and he said that guanxi was in decline and will eventually go the way of the dinosaur in most cases but not all. He gave this as an example.

He said when his architect company needed a new architect a new person was sent - no resume needed - the invisible hand decided who gets the job - no questions were asked. However, this system had nothing to do with ability. He said now all architects must use a resume so he has seen the changes in his lifetime.

He said - Before most companies were state owned and had to provide room and board for its employees. 6 years ago he said there were only a handful of those companies left. I am sure many of you know of certain residential quarters that are only for employees. Many companies have slowly phased these out and are no longer for employees only. I now own a home that is owned by the China Southern Power Grid in Dali and I own a home here in Kunming that is owned by a Pharma Company.

Another topic he mentioned was civil servant workers. He mentioned that guanxi was still alive and well in this department, especially when it comes to civil servants who join the Communist Party - they have preference. However, guanxi is not about gift giving but more about - Its not WHAT you know but WHO you know - type of thing.

Many jobs that were only for civil servants have now been opened to all people so there is a decline in civil servant jobs (Many private hospitals now). Also, there has been a decline in Communist Party membership. In the old days, a person who landed a civil servant job had it made but now people can earn a better living working outside the civil servant jobs and live like kings. Civil Servant jobs are no longer valued and actually looked down upon now. Civil servant workers are now considered low class and no longer esteemed or respected.

Every year my students tell me how their parents want them to take the annual (Oct-Nov) civil servant test and how they want them to join the Communist Party in the University. Most of them refuse and this debate with parents lingers - old way vs new way.

The last example he gave was in education. He was very clear that this has nothing to do with guanxi and is nothing more than plain bribery, although it is masked as guanxi.

I saw a recent example of this as there is a new system in place for primary school kids going to middle school. Some provinces made this change in 2015 and more now in 2016. Since many parents and teachers do not yet understand how this new system works they resort to good old fashioned bribery to get their brats into better schools.

I see this system slowly coming to an end soon because there are more parents with money and power now. Some parents are willing to fight and stand up for their rights, especially when their kids have the good scores while others do not and get in through bribery.

I predict we will see more and more cases of headmasters who can not justify how some rich kid with poor scores got in while others with good scores did not. Test scores are all computerized and in plain sight now.

Finally, it is the young people who will change this old system. As they grow older and replace the older leaders they will discontinue the guanxi system. They are tired of the drinking and the late night diners and KTV and they are now focusing on ability.

Personally, I believe guanxi is a Self Fulfilling Prophecy. In the land of China, anything can be accomplished - in time. However, it is those people who want it done NOW that resort to this behavior and feed the beast and intentionally, unintentionally, or ignorantly continue this system.

I have always been very clear with all the chinese people I interact with - I never receive gifts - and I have refused many a gift and made the person feel bad or lose face - too bad.

One of my requirements for my students is that they delete most of their QQ contacts. Most have 100s, I only allow 20 (Wechat is another beast). One of the usual arguements I get is that they may need that person at a later date. They admit they have no contact with that person any longer but they keep them in case they need them later on. I ask them, Do you realize you are using this person? they say YES but many people keep me on their contact list for the same reason.

Another part of guanxi that will disappear with time is that more young people have a stronger self esteem and know their own identity. Part of what keeps guanxi alive is the Inability of chinese people to say NO. So they do favors because they feel obligated, not because they really want to.

Travel opens peoples' eyes and many young people now travel on their own, not in tour groups. As they see and interact with different people they begin to assimilate new ideas and in turn give up many of their old beliefs and old ways. Visit your local PSB and see how many chinese people are getting passports.

Guanxi worked while China remained a homogenous country and culture. This is no longer true and fading quickly each passing year. Foreign Devils are everywhere in China since the Olympics of 2008. Learning english started in middle school, then began in the third grade, and now in first grade. Ask any chinese young person when Valentines Day is and they will say Feb 14, not July 7. As China becomes more westernized, and it is, guanxi will fade away.

As part of her work, my wife attends Parenting seminars frequently. All the Information presented is from the west (Psychology) and unknown previously in China. Do a Baidu search of - Supernanny - watch the videos - more chinese people are now open to counseling - this was unheard of in the past because of FACE.

Guanxi will continue to decline in the future because people can not do in business what they can no longer do in daily life. One can not deny that guanxi still exists, the question is how often was it seen 10 years ago and how often is it seen now - in Kunming.

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Forums > Travel Yunnan > Erhai lake Tour - Bus 007

There are pros and cons for both; the the bus or the car/taxi.

The bus will only stop at the designated stops, you can NOT ask the bus driver to stop where you please. Then you must walk to the next stop or wait where you were dropped off.

The driver you hire will stop anywhere you like so you can take some photos but as the day goes on they get in a rush and are less willing.

Be very clear when hirng a driver. Ask what time he will begin and what time he will finish. Cheapest price for a day tour is 400 RMB so you will have to bargain and remember you get what you pay for. For 3 people I think hiring a driver will be the best way to go. I suggest you get a minivan rather than a car so you can be more comfortable. I had a very good driver one time and we paid him 500 at the end of the day as he was patient and did not rush us at any time.

One day should be enough. If you find a place you like and want to visit again you can take a local bus for a few RMB the following day.

www.gokunming.com/en/blog/item/2275/getting_away_shuanglang

I have a home in Dali so I have driven around the lake several times when friends come to visit over the last 12 years. I have used a driver every time. I still have NOT had an opportunity to use the 007 bus.

Please make sure to give some feedback on which ever route you take.

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The old museum is a Provincial level historical site of Wu Hua District. You will notice a black stone marker to the right of the museum. It will remain in place and be protected.

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The new Visa office is located at 118 Tuo Dong Road. There is no number on the building yet so do not bother to look for it. There are 2 passport photo shops on either side of the building. The office is located directly in front of the Kunming Museum. The bus stop is named - Shi Bo Wu Guan - Bus 1, 62, 109, 117, 145, 213, A1 and K3 stop directly in front of the office. Foreigners need to go to the 3rd floor. The Tuo Dong Stadium is located to the right of the office while Baita Road is located to the left of the office.