撮要

Guanxi, political connections in China, can provide unique competitive advantages, but can expose business leaders to regulatory and political risks in the region. The fictional case focuses on how U.S. banks in Hong Kong, a major financial center for the Chinese market, are pinned upon the horns of a dilemma. Banks can abide by the letter of the law and not win any business; alternatively, they can break the law, in spirit if not actually the letter, and win business at the cost of incurring legal jeopardy and possibly violating one’s own sense of morality by hiring the children of well-connected senior management of a Chinese business who can direct substantial mandates to the employers.

学习目标

Through this case, students will be able to:

- understand grandxi (personal relationships) in Chinese businesses, which embody both opportunities and risks;

- distinguish the nuances between legally permissible and prohibited behaviors in the context of political connections; and

- navigate the difficult business environment which hidden cultural agenda