The concept of guanxi is similar to the concept of networking that is present in the New Zealand. However, there are considerable differences between networking and guanxi. The guanxi notion functions to provide a platform to the individuals to perform both business and social activities in China (Clarke, 2009). The basis of guanxi is firmly established upon the connections between the people which are defined by the mutual obligation, reciprocity, and trust. The trust factor plays a critical role for the individuals as it allows them to develop mutual understanding and mutual obligations. These components are leveraged for the advancement of the business activities and an individual in China (Davis, 2009). Although the concept of guanxi is not defined in writing, the concept is adopted not only by the business leaders but the people in general. Hence, in order to perform any business or social activity, it becomes critical for the business to develop trust among the customers. The research has identified that if the trust and connection between the different individuals at the political level, consumer, and personal level is present than the good relationships are viewed as good guanxi developed by a leader (El Kahal, 2001). The concept of guanxi is important to not only the business level but also within the inter-personal level. This allows the individuals to rely more on the relationships developed through guanxi instead of the legislation and the institutions which are less reliable.