Using an instrumental variable approach, we analyze survey data to untangle the relationship between social and political trust in contemporary China. We find strong evidence that political trust enhances social trust in China and the results are robust to a range of measures, including the generalized social trust question, as well as three contextualized trust questions. We also shed light on the impact of economic modernization on social trust. Our findings contribute to the general literature on trust and provide a better understanding of the complicated relationship between political trust and social trust. They also offer insight into the dynamics of trust production and reproduction in China and thus into China’s socio-political development.