Chaoshan Business Networks Built on Moral Trust, Not Contracts

A Sixth Tone article examines how Chaoshan business networks in China have historically operated on moral trust rather than formal contracts. For over a century, overseas Chinese workers from the Chaoshan region relied on informal remittance systems underpinned by personal relationships and ethical obligations. These networks facilitated the flow of money back to families in Guangdong without legal documentation. The legacy of this trust-based system continues to influence contemporary Chinese business culture, where guanxi (personal connections) often supersedes written agreements. The article highlights the cultural and historical foundations of these practices, contrasting them with Western legal frameworks.