In China, they said, Guanxi ( the art of relationships) is everything.

I guess in most Asian countries, it plays a big role in businesses.  We deal with the Japanese, and the Chinese, and yes, it makes a difference if you are good chummy friends with your partners and customers.  Yes, it pays also to know people who are in power or who makes the decisions.  No, meritocracy still plays second fiddle.  If you are favored, you can win contracts and concessions even if you are not the best supplier or lowest priced contractor.

Yesterday, I meet a Taiwanese and he coined to me a quote:

With Guanxi, then no Guanxi.
No Guanxi, then everything Guanxi.

This is a little bit hard to explain and cryptic.  Although the first Guanxi reads like the second Guanxi, the meaning is different.  Translated it means:

If you have the right relationships, then nothing is impossible.
If you don’t have the right relationships, then everything is difficult.

Relationships goes to the fabric of the culture, and i think it will be sometime before that changes.