In modern China, 采购 (cǎigòu) is a cornerstone of business and government operations. The `采购部 (cǎigòubù)` or “Procurement Department” is a critical function in any medium-to-large-sized company.
A key cultural difference from many Western business practices lies in the role of `关系 (guānxi)`—personal relationships and networks. While Western procurement often emphasizes a highly structured, impartial bidding process (like a formal tender), Chinese 采购 can place a heavy emphasis on long-term, trusted relationships with suppliers. A procurement manager might choose a supplier they have a strong `关系` with, even if they aren't the absolute cheapest, because that relationship guarantees reliability, quality, and flexibility.
This isn't necessarily corruption (though that can be a risk); it's often a practical strategy in a market where trust and reliability are paramount. The Western concept of “supplier relationship management” is similar, but `关系` adds a deeper layer of mutual obligation and personal connection that is culturally distinct.
In recent years, the Chinese government has heavily promoted `集中采购 (jízhōng cǎigòu)`—centralized procurement—to increase transparency and combat corruption, standardizing the process for government-related purchases.