Thus, guanxi is important in two domains: 1) social ties with managers of suppliers, buyers, competitors, and other business intermediaries; and 2) social ties with government officials at various national government-regulated agencies.
Note that the aforementioned organizational flaws guanxi creates can be diminished by having more efficient institutions (like open market systems that are regulated by formal organizational procedures while promoting competition and innovation) in place to help facilitate business interactions more effectually [REF].