In English, “I know him” can be ambiguous. It could mean you've met him once or that he's your best friend. Chinese is more precise. 了解 (liǎojiě) plays a key role in expressing the depth of relationships and knowledge. Compare it with a Western concept like “due diligence.” When a Chinese company says they need to 了解 (liǎojiě) a potential partner, it goes beyond checking financials. It implies understanding their business culture, their key people's personalities, and their reputation. This reflects a cultural emphasis on building relationships and understanding the context behind the facts. Saying “我了解你 (wǒ liǎojiě nǐ)” is much more meaningful than “我知道你 (wǒ zhīdào nǐ).” The first implies empathy and a deep familiarity with someone's character and situation, while the second simply means “I know of you.” Using 了解 (liǎojiě) shows that you've invested time and effort into understanding someone or something, which is highly valued.
了解 (liǎojiě) is a versatile, everyday word used in both formal and informal settings.
The most common pitfall for learners is confusing 了解 (liǎojiě) with 知道 (zhīdào) and 明白 (míngbai).