The Rise of the Dragon

Gift giving has been a necessary and influential part of history in all civilizations and cultures. Gift giving varies across cultures, especially in Western vs. Chinese societies. In the West gift giving usually is from superiors to inferiors. In China the opposite is usually true, where people of lower classes often give gifts to upper classes, or those in power. In this case power structures are rarely changed. The social make-up of China is more fluid in the West. Power is a direct product of guanxi, or relationships, rather than the strict relationship structures seen in the West. Power and influence based on relationships has created a complex system in China based on reciprocity and morality.

Gift giving in China is not only an important part of lubricating social structures, it is often expected and even demanded as a prerequisite for doing business, getting approval for social advances and other interactions. In many cases this has caused rampant corruption, especially in the upper echelons of the Chinese government. In China, even more than in the West, it isn’t about what you have or do, it’s who you know.

Two types of gift giving in Chinese cultures are expressive and instrumental. Expressive gift giving is where the size and value of the gift is determined by the strength of the relationship. These are usually family relations, like a son giving a father a gift. Instrumental gift giving is where the strength of the relationship is determined by the size and value of the gift. These types of gifts are more along the lines of ” bribery,” like someone giving a government official a gift in exchange for the right to do business.

It is important to understand the gift giving practices in China in order to create and foster the relationships you or your company need to be successful. It is also important to understand appropriate gift giving practices because of the legal and ethical ramifications that can come into play. Bribing an official is certainly illegal and a quick way to blacklist your company and hinder its opportunities in China. However, there are appropriate gift giving practices that can open doors and strengthen relationships and alliances that are essential to personal and business success in China as well as all Asia.