In China, the relationship is often considered the most important resource and lubricants. Many entrepreneurs spend a lot of time and resources to run a variety of relationships, such as relationships (political ties) with the government and government officials, relationships (business ties) with strategic business partners and competitors. But whether business or political ties play more salient roles for firm performance in China? This paper first discusses the links and differences between political ties and business ties. Then, it analyses respective effects of business and political ties on corporate performance. Finally, it provides certain revelation for Chinese entrepreneurs. They must distinguish between business and political ties and understand their distinct roles.