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Manuscript Type: Perspective Research Question/Issue:This paper argues that China shall not completely transit from a relation into a rule-based governance regime because this Chinese system of governance is the product of its entrenched values and practices.Research Findings/Insights: Relation-based governance is central to the Chinese business culture and values.There are in fact two dimensions in this system.This first is evident from the emphasis on reciprocity and mutual obligations fostered between individuals and groups.The second is inside an organization,governance is hierarchical in structure where the leadership type could be characterized as paternalistic.At its core,this system of governance was influenced by Confucian doctrines,the cornerstone of Chinese culture.Therefore,it is doubtful that the Chinese would abandon relation-based governance in favour of a rule-based regime from the West.Theoretical/Academic Implications: It is a fallacy to think that emerging economies will transit from relation-based governance into a rule-based framework.This transition is not inevitable.Chinese culture values and practices do matter when it comes to governance.The continuance of this Chinese regime is due to both historical as well as ideological reasons.Therefore,future research about Chinese system of governance should not be restricted to or focused on the weaknesses and vulnerabilities of this Chinese regime,neither is it practicable to contemplate that China is immune from the effects of globalization.Therefore the debate should be reframed as to how could China integrate or formulate hybrid models of governance to ensure the merits of both regimes are preserved for the betterment of Chinese society at large.Practitioner/Policy Implications: Given the fact that both relation and rule based governance regime will feature in Chinas future.Research should be driving at generating policy and regulatory ideas for China to establish a hybrid system of governance,where both Chinese and Western models of governance could complement each other.