The underlying spatial forces of firm networking practices are understudied in the literature of economic geography. This paper aims to reveal patterns and mechanisms of networking practices and relates them to China's transitional context based on empirical data from a firm survey in the Pearl River Delta. It addresses the localisation effect as the primary factor in explaining the selection of networking partners. The results of this paper suggest a strong tendency towards networking with local government agencies vis‐à‐vis weak linkages with business partners. Furthermore, it reveals that the intent of bonding with local authorities through interpersonal relationships increases with the localisation of customers. Meanwhile, firms are more likely to pursue learning‐oriented networks with competitors as the number of suppliers in the same city increases. The findings add to the understanding of network relations in China, in particular to the rationales behind relations to local government officials.