Dominick: The manager desyrel over counter Partly because of culture, and partly because of a weak legal system, China’s economy runs on guanxi. Before inking deals, executives and officials are expected to socialize in order to build trust. While economists might view this behavior as inefficient, or corrupt, it can also carry certain benefits. Businesses that exchange gifts or favors can expedite agreements, shorten negotiations, reduce arbitration and mediation costs, and avoid lawsuits.