Sinomania!: The Importance of Guanxi

October 07, 2009

The Importance of Guanxi

Chinese medical device manufacturer Huiheng Medical makes cancer fighting equipment using gamma rays and will build a plant in Baton Rouge, Louisiana, that will employ perhaps 300 in well-paying jobs. Why Baton Rouge? Largely, Huiheng CEO Xiaobing Hui says because mayor of Baton Rouge "Kip" Holden went to China and met with the company directly and they hit it off. This is an illustration of what "guanxi" really means - close, interpersonal relationships based on trust and a desire for mutual benefit. Huiheng Medical is listed as an Over The Counter stock in the USA with symbol HHGM.OB. The company has yet to secure FDA approval of its device....

Labels: foreign investment, foreign relations

# posted by Sinomania! : 10/07/2009 10:08:00 AM

Comments:

"guanxi" sounds like a contagious disease

# posted by

Anonymous : Mon Oct 12, 07:59:00 PM PDT

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About Me

Name: Sinomania!

Location: San Diego, California, United States

Ben Calmes writes, produces, and hosts a weekly broadcast on China, Chinese stock markets, and business matters, at the sinomania.com website. He has traveled alone extensively throughout eleven provinces, municipalities, and special administrative regions in China. His views on China have been sought by Moody's Investors Service, the World Economic Forum, the New York Times, Xinhua Finance, and the Council on Foreign Relations. Ben worked in the White House in the administration of President George H.W. Bush and as a consultant to the Clinton/Gore Transition Team. He has held responsible positions at government sponsored enterprises at the federal, state, and city level as well as the US Department of the Treasury and private enterprises. Ben has a B.A. from the University of Virginia and a M.A. from USC.

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October 07, 2009

The Importance of Guanxi

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