Abstract: Abstract: This paper investigate the influence of interpersonal relationship on trust and cooperation from “guanxi”-- the unique source of trust in the traditional Chinese society. Through the related literature review, the paper designed the theoretical model and proposed correlated hypotheses. At last the hypotheses of the model were verified via SEM. Empirical study results show that affective relationship and instrumental relationship are the foundation of the formation of cooperative internal trust and affect the efficiency of cooperation. The favor and face are the important characteristic in Chinese rural culture and affect the formation of affective relationship and instrumental relationship.