This　article　is　based　on　two　case　studies　of　social　exclusion　in　two　Chinese　villages　against　the　background　of　social　stratification.Five　types　of　social　exclusion　of　the　poor-housing,　marriage,　renqing,　ritual,　and　gossip　exclusion-are　identified,　which　shrink　the　guanxi　networks　held　by　the　poor.　This　in　turn　weakens　their　social　and　ritual　capital　and　lowers　their　social　status,leading　to　the　reproduction　of　inequality.　The　research　presented　here　finds　that　the　vertical　exclusiveness　of　guanxi,　which　is　based　on　the　concepts　of　in-group　and　out-group　separation,　superior　and　inferior　separation,　and　symmetrical　reciprocity,　results　in　social　exclusion　of　the　poor.　This　process　is　underpinned　by　the　instrumental　use　of　the　traditional　Confucian　ritual(li),　in　which　ideas　of　modern　social　welfare,　equality,　and　universalism　are　insufficient.