The Declining Significance ofGuanxiin China's Economic Transition

Recently a number of scholars have examined guanxi (connections/social relationships) and its role in the structure of Chinese society as the economic transition progresses. While many China scholars view guanxi as a deep-seated cultural fact of Chinese society, I view guanxi as an institutionally defined system – i.e. a system that depends on the institutional structure of society rather than on culture – that is changing in stride with the institutional changes of the reform era. Some scholars have argued that social networks and the use of these networks to exchange gifts and favours ( guanxi xue or guanxi practice ) are increasing in imnnrtanre. in China's transition.