Is guanxi unfair? Market reform and the public attitude toward guanxi in urban China

Abstract Guanxi is a fundamental, but controversial, feature of Chinese society. This article examines public attitudes about the fairness of guanxi and how Chinese market reform is affecting these attitudes. The reciprocity-laden and tie-sensitive nature of guanxi conflicts with the efficiency-oriented goal of a market economy. Disapproval of guanxi is thus increasing as marketization progresses. Results from the 2008 Chinese General Social Survey show that guanxi is more likely to be viewed as unfair in places with higher levels of marketization. The educational gradient decreases with marketization, and change is more pronounced among people working in the market sector than it is among people working in the state sector. My findings suggest that Chinese market reform increases public disapproval of guanxi .