A subsection takes note of the developments in regional economic reforms that greatly affect regional values. The effect of regional variation in management is explored through different kinds of literature in a separate section. Cities of Shanghai, Dongguan, and Chongqing represent the eastern, southern and southwestern regions of China, respectively. The three cities are the focus of the research since they are close representatives of regional diversity in China. Subsections on relevant information about the cities are written in order to give background data and facts. The second section will unpeel the factors specific to China on a national and regional level analysis. Values and beliefs are elements of a person’s behavior toward guanxi management. A subsection discusses Confucianism as the source of Chinese traditional values. Under the open economy, Western practices influenced the traditional style of Chinese manager’s behaviors and attitudes. A subsection is focused on western influences. The inner core of Chinese managers’ attitudes lies in the regional and ethnic diversity of the country. Each region has different business styles and characteristics. Separate subsections describe the varying subcultures dominant in cities of Shanghai, Dongguan, and Chongqing. The next section of the chapter skins the different microlayers wrapping an individual Chinese manager. It is in this section that contemporary theories about guanxi and its relevance in the business environment are introduced and reviewed. The components that constitute guanxi are identified and defined using different contemporary works of literature. As behavior is directed by social standards, a subsection appraises the sources of social expectations of managers. Another subsection discusses the different works of literature regarding the effect of change toward organizational behavior and guanxi.