The Study On The Latent Function Of Relational Trust In Transitional China

Currently,China is witnessing a trust transition from relational trust to systematic trust.However,this process is not carried out in a way of fracture or obstinate inertness.Latent functions of relational trust,namely,inertial continuation&stability function and medium function,urge relational trust and systematic trust to coexist and develop a mutually influencing relationship,thus making the transition of social trust structure develop in an orderly progressive manner.Private lending crisis in Yulin can provide empirical evidence for the conclusion mentioned above.Yulin,located in the northwest of China,has a harsh natural condition,severe soil erosion,and fragile ecology.However,it is honored as China's"Kuwait" because of its abundant energy resource reserve.As from 2000,the prices of coal and petroleum rose swiftly and violently.The region ushered in opportunities for golden development and its economy saw an explosive growth.High-speed economic growth inevitably leads to strong capital demand,and private lending has thus entered a period of prosperity.However,such good times didn't last long.After 2013,the prices of coal and petroleum continued to decline.In addition,national macro-control policy on cutting overcapacity was performed.Yulin's economy with extensive energy exploitation as pillar industry encountered a severe downturn.With the deterioration of the external economic environment,private lending crisis directly occurred in this region.It's undisputed that there is a close connection between lending and trust.Trust is a basis to form a lending relationship,which cannot be built without trust.Trust logic established by private lending relationship in Yulin is one of the relational trust,which is intensively reflected in that loan fund basically flows in the circle of primary relation and lending procedure lacks of standardization.From the perspective of trust,the private lending crisis in this region is caused by "function failure" of relational trust.With a rapid development of Yulin's economy,private lending turns to the pursuit of profit from mutual aid in nature.However,potential trust logic doesn't make a difference.As a result,the mismatch between relational trust and profit-driven private lending appears.The function of relational trust is not working on controlling the lending crisis.Additionally,there is an economic downturn externally.Consequently,the private lending crisis in this region breaks out.The outburst of the private lending crisis in Yulin generates two "accidental consequences".First,the crisis doesn't trigger plenty of extreme behaviors to avoid claim creditors such as "escape" and commit suicide,and severe social disruption.Second,this private lending crisis drives transition of social trust.Latent functions of relational trust,namely,stability function and medium function,are a root cause for two "accidental consequences" of private lending in Yulin.It's also the existence of latent functions of relational trust that enables China's social trust transition to demonstrate a special mode of transition.