It means that a distant relative is not as good as a close neighbor, and refers to the interpersonal relationship in which neighbors care about and help each other. One side is in trouble and a hundred sides support it. Relatives, however far away, are not as good as their neighbors, so it is difficult to help them solve their problems quickly.
"A distant relative is better than a close neighbor" is also a national policy. China needs a peaceful and stable international environment, and more importantly, a neighboring environment of good neighborliness and common development.