This chapter demonstrates an understanding of the nature of transformation undergoing in entrepreneurship in China. In recent years, China has earned a reputation as one of the world's most entrepreneur-friendly county. China is the home to many world-class entrepreneurial firms that have championed technology and innovation and performed at high levels of productivity and quality. Inequalities in income and wealth in China have accelerated at a phenomenally unprecedented pace. The conservative faction in the Chinese Communist Party (CCP) considers entrepreneurial ventures as potential threats to the party's dominance, ideology, administrative authority, and moral standards. In China's context, researchers have identified four approaches institutional entrepreneurs employ to create market-oriented institutions by breaking regulative barriers: open advocacy, private persuasion, making a case for exceptions and ex ante investment with ex post justification.