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Guanxi, an informal personal relationship, is an important element facilitating business success in China and other Asian countries that are influenced by Confucian culture. Despite recently increased research on guanxi and its roles in business context, the understanding of guanxi remains misapprehended or incomplete. This article attempts to disentangle this cultural and social phenomenon of guanxi to help Western businessmen better comprehend and manage guanxi more effectively when doing business in Asia especially in Chinese markets.