This paper explores the conceptual basis of Chinese social organization, and examines how the fundamental Chinese categories of interpersonal relationships a¨ect Chinese ways of speaking and social interaction. Firstly, the paper will analyze the full meanings and interrelationship of two of the most distinctive (complementary) dyads of Chinese social categories, namely, she Ångre Ân (lit.``uncooked person'',``stranger'') vs. shu  re Ân (lit.`c ooked person'',``an old acquaintance''), and zõ Ájõ AEre Ân (lit.``oneself person'',``insider'') vs. wa Áire Ân (lit.``outer/outsider person'',``outsider''). It will then put forward two master scriptsÐgeneral principles underlying norms of social interactionÐin Chinese culture that are governed by the demarcations of these fundamental categories: ne Áiwa Áiyo AE ubie  (``di¨erence between the insider and outsider'') and yo  ushu Å zhõ Áqõ Ån (``from far to close''), and illustrate aspects of Chinese language use that are guided by these principles. They include da AE zha Åohu (``greetings''), the use of to  ng X (``fellow X'') and la AEo X (``old X''), and a brief discussion of the value of not being polite in Chinese culture. On the one hand, this paper demonstrates the need for treating interpersonal relationships as a theoretical variable in the study of human interaction and shows the importance of an indigenous perspective; on the other, it relates theoretical discussion of human interaction to practical needs of understanding Chinese interactional style for the purpose of language teaching and political and commercial negotiations. Both goals can be attained by the use of the Natural Semantic Metalanguage and``cultural scripts'' theory.