Rumors always trigger public panic in China, while the advanced Internet technology has tremendously influenced the daily life of the Chinese. Thus, the dynamics of rumor spreading via the social media in China are worthwhile discussing. In order to fulfill the aim of this research, one of the prevalent Chinese social media sites, the Sina microblog, is introduced and analyzed within the context of the salt-buying frenzy incident that occurred in China in 2011. Various theoretical approaches, from the sociological and media studies perspectives, are introduced to form the framework for analysis. The relevant data and materials were collected via questionnaires with Chinese Internet users, while previous academic research and publications provide supportive materials. From the analysis of this social media site and contemporary Chinese circumstances, it was seen that the Guanxi network extended and enlarged the influence of online rumors to offline Chinese. In other words, the Guanxi network, expanded by social media, can be considered as the most important part of the dynamic process of rumor spreading in China. However, the openness and freedom of the Internet atmosphere were found to be the main factors in eliminating online rumors.

Guanxi plays an important role in Chinese entrepreneurial networking activities, especially for micro entrepreneurial firms in China. Due to limited information and resources available to micro firms, micro firms are more dependent on entrepreneurs’ guanxi networks to get access to the necessary resources. Previous literatures have particularly discussed the impacts of guanxi networks for foreigners successfully doing business in China. Nevertheless, there are scant literatures that study on the role of the guanxi in Chinese entrepreneurship. The purpose of this study is to provide a better understanding of the role of guanxi in Chinese entrepreneurship. This study employs the relevant guanxi concepts, Western social capital theory, and network-based entrepreneurship as the main conceptual framework to examine how Chinese entrepreneurs utilize their guanxi networks during the development of micro firms. Furthermore, this study is based on ten case studies in China. Empirical Data are collected from semi-structured interviews with ten Chinese entrepreneurs in micro firms. The results show that guanxi networks are highly important for Chinese entrepreneurs to develop their business. Firstly, Chinese entrepreneurs make use of different guanxi governance mechanisms--qinqing, renqing and jiaoqing to acquire different information and resources for the development of their firms. The obtained information and resources constitute the social capital, which can be used to complement insufficient capital within the firms. Secondly, Chinese entrepreneurs intentionally enlarge their guanxi network size to obtain more resources. Moreover, Chinese entrepreneurs benefit from strong guanxi ties and closure network structures to obtain the cohesive social capital. While Chinese entrepreneurs gain greater benefits from weak guanxi ties and spare network structures for acquiring additional information, resources and business opportunities. Thirdly, guanxi-networking activities are different from Western social networking activities, as guanxi-networking activities put more emphasize on keeping harmony and mutual reciprocity. Furthermore, Chinese entrepreneurs are proactive to build and maintain guanxi networks through various approaches for their business development. Lastly, even though guanxi networks play important roles in the development of micro entrepreneurial firms, they cannot be sustainable competitive advantage in the long term. Indeed, the core competences such as high quality of products and services, advanced technologies and marketing channels could be sustainable competitive advantages for the entrepreneurial firms in today’s increasingly fierce competitive market.

China has blossomed from going from one of the poorest economies to a financial leader. The private consumption in China has grown 8,3% annually the last two decades. The dining out expenditures have grown 10,2%, and is an exciting market for foreign entrepreneurs to establish themselves in. Previous research has suggested that foreign Micro, Small and Medium Enterprises should join forces with a Chinese counterpart in order to get access to market experience and network contacts, in order to succeed in the Chinese market (Wilson and Brennan, 2003). Deng (2001) claims that the most popular investment vehicle Wholly Foreign Owned Enterprise increases in popularity among all company sizes.   This dissertation aims to investigate to which extent MSME foreign entrepreneurs use networking and guanxi, depending on ownership registration. A qualitative research method was used with an abductive approach and an interpretivist research philosophy to explore this phenomenon. The results of this thesis show that foreign entrepreneurs can start up successfully both as WFOEs and JVs. WFOEs and JVs share many of the same contacts, but networking activities and usage of guanxi has some influencing factors. The Registration Status of company influence strategic networking decisions, the perception and expectation of the nature and benefits of guanxi and perceived necessity of gift giving also affected the networking activities.  JV owners perceive guanxi contacts to be necessary to succeed in China and finds cultivation and utilization of it to be beneficial.  Entrepreneurs who establish Wholly Foreign Owned Enterprises both use and have a more “Western” approach to social networking, and almost exclusively don’t have guanxi contacts. The Investment Vehicle Network Scheme shows that JVs have more complex networks than WFOE, since they receive Chinese guanxi and networking contacts through their partners. The Guanxi Network Ownership Model shows the network intensity during the startup phases of the companies. The research also indicates that guanxi smoothens out the start-up process for the entrepreneurs who enter JVs.