ABSTRACT
The Chinese government can influence markets through close control of state-owned enterprises (SOEs) and large corporations that are floated on stock exchanges, yet still owned by the state. This chapter explores the nature of the state in China and its interactions with entrepreneurs. The analysis focuses on three broad themes. The first theme is the nature of government in China, including its structure and particularly the relationship between the Communist Party of China and the government. The second theme is current enterprise policy in China, and the extent to which this is sufficiently supportive to have a substantive influence on the growth prospects of private enterprises. The third theme is the relationship between the state and entrepreneurs, and particularly whether the state views the private sector as the principal driver of economic development in China's 'new normal' of lower overall growth.
