The drawbacks of guanxi

A Chinese business student asked me recently about what I, as a Westerner and teacher in a business college, thought of the Chinese concept of guanxi. I told him that, at best, guanxi was what we call nepotism - favoring relatives and friends in business and jobs. Friends include classmates, schoolmates and even not-too-distant acquaintances.

From what I've observed first hand, guanxi pays little or no attention to the qualification, talent, education or the abilities of the individual who is shown favor.