The article explores how networks and global value chains impact the internationalization of small Chinese businesses. By studying nine firms, it was found that these businesses benefit from networks for quick access to global markets, but face challenges in further growth. While network ties help with international expansion, they can also limit future development due to low positions in global value chains. This can hinder business growth and capability building. The study identifies factors that help these businesses engage with global value chains, as well as obstacles that prevent them from upgrading within these chains.