ABSTRACT Although scholars have long been interested in distinguishing gift giving from bribery, the impact of the degree of guanxi between a giver and a recipient on this distinction remains unclear. Drawing on a bystander perspective, this paper investigates how people distinguish between two types of giving behavior: gift giving and bribing. In three studies, we examined how guanxi, the price of a present, and the motivation for giving a present influence people’s perception of a present. The results largely supported (...) our expectation that presents were more likely to be considered a bribe when guanxi utility was high, if the present held high economic value, and if the giving motivation was instrumental-oriented. Implications of our findings for future research and business practitioners in Chinese culture are discussed. (shrink)