Fruitful Ties to China’s Elite

Hmmm… Now why is this news? Is it unusual? Actually, it’s normal in this country where we have the rule by law, not the rule of law. On this side of the world, it’s not viewed as corruption of honest business practices, this is exactly and precisely how business is conducted.

JPMorgan's Fruitful Ties to a Member of China's Elite – NYTimes.com.

Nothing gets done (above a one-to-one exchange in the marketplace) without some extra consideration being worked into the deal somewhere. It’s called guanxi 关系 and it means relationship. But it goes far beyond friends doing good things for friends for the sake of the relationship. Where guanxi does not exist it can be purchased, as it looks like it was done here. Sometimes it’s very blatant, but most of the time it’s just under the table. Welcome to China.