The act of gift giving as a means to nurture guanxi (personal connections) is a critical activity, which has its roots in China's hierarchical society, and may often determine whether a person or enterprise will succeed in China. With a history of constant shortages of goods and services, paying homage to those individuals who can deliver needed items is a means to bypass the Chinese bureaucracy. Those who have valuable connections are able to improve their job and personal situations, can obtain a superior apartment, or may secure government approval for a permit or license. Unfortunately, gift giving can cross the line from incidental gratuities to payments of cash and property that violate both Chinese and U.S. laws.
