Cultivating affective relationship by building guānxi is a pre-requisite in managing the Human Resource Due Diligence process. The notion of guānxi is unpacked into human-heartedness; affection; appointed trust; usefulness of trust; personality; and face in society. The importance of social exchanges of favours; dynamic positioning of social hierarchies; and the intricate balancing of power are emphasised in M&A negotiations. For the Chinese people, the law is not beyond humaneness.
In Western economies, business is generally conducted within rules-based systems under ...