China’s bankers and business executives are turning to a popular card game called Guandan to unlock domestic capital as foreign funding dries up. Guandan, a poker-like game that has been around for decades, gained fresh popularity among venture capitalists a few years ago due to its popularity among wealthy local government officials in eastern regions. The game has become a craze nationwide, driven in part by financial constraints resulting from strained relations with the United States.
The decline in foreign investment in China, particularly in sectors like semiconductors, has led financiers to view Guandan as a way to build connections with officials who control local project funding. In the game, players have the opportunity to chit-chat and exchange information during the hours-long gameplay, which can help establish trust and facilitate business relationships.
The interest in Guandan has grown to the extent that some companies have ordered their staff to learn the game. Similar to bridge, Guandan is played in teams of four players using two decks of cards. Observing someone’s playing style can provide insights into their personality traits, such as intelligence, aggressiveness, or teamwork, which can be valuable when considering potential business partnerships.
While Guandan is seen as a business tool by some, many players simply enjoy the mental stimulation and socializing aspects of the game. It has become popular among people from various walks of life, ranging from retired individuals to young professionals seeking to build new social connections. The game is considered cost-free and does not involve gambling, unlike other popular card games like Texas Hold’em or mahjong.
However, it is worth noting that Chinese officials have faced criticism in the past for receiving bribes through card games or mahjong. In April, an official in the eastern province of Anhui was censured by the ruling Communist Party’s anti-graft watchdog for playing Guandan during a training course, among other misdeeds.
Despite these concerns, the growing interest in Guandan has not gone unnoticed by Beijing. China’s national sports authority has organized the first nationwide Guandan competition this year, indicating the government’s acceptance of the game’s popularity.
As China’s bankers and business executives navigate the challenges of limited foreign funding, Guandan has emerged as a unique way to unlock domestic capital and build connections with officials who hold the key to local projects. Whether used as a business tool or a means of socializing, the game has captured the attention of individuals from various backgrounds and continues to gain popularity nationwide.
Reporting by Yew Lun Tian; Editing by John Geddie and Clarence Fernandez
How does Guandan help Chinese bankers and executives overcome the difficulties they face in accessing domestic capital?
Has also increased as Chinese bankers and executives face difficulties in accessing domestic capital. In recent years, the Chinese government has been cracking down on shadow banking and tightening regulations on lending, making it more challenging for businesses to secure loans from traditional financial channels. As a result, companies and individuals are turning to alternative methods, such as Guandan, to navigate the country’s complex funding landscape.
Guandan provides a unique environment for bankers and business executives to network and forge connections with influential officials. The game’s social nature allows players to interact and build relationships during gameplay, creating opportunities to discuss potential business deals and investments. This interaction is particularly valuable in China’s business culture, where personal relationships and trust are considered essential in conducting successful transactions.
Moreover, the game’s appeal extends beyond its networking potential. Guandan is known for its strategic depth and requires players to make calculated moves and decisions. These skills, highly valued in the business world, make Guandan an appealing platform for financiers seeking to demonstrate their strategic thinking abilities. By excelling at the game, players can showcase their business acumen and potentially gain the respect and trust of fellow participants.
While Guandan cannot entirely replace the need for foreign investment, it has become an essential tool for Chinese bankers and executives in navigating a challenging funding environment. By leveraging the game’s networking opportunities and strategic gameplay, individuals can establish connections and secure necessary funds to fuel their business growth. As the popularity of Guandan continues to rise, the game is likely to remain a vital resource for unlocking domestic capital in China.
