Abstract
This chapter discusses the origin and fundamental role of guanxi in China through its conceptual development based on previous studies, addresses the important role that guanxi plays in the Chinese socioeconomic system, elaborates the notion of “Five Classified Relationships” (FCR) (Wulun) of Confucian ethics, differential mode of association (chaxugeju) theory and key terms in guanxi study. These ideas illustrate the fundamental role of guanxi as the “invisible hand” shaping the Chinese culture and society.
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