Economic reforms in China have led to the creation of an entirely new social class: the business elite. Entrepreneurs in the foreign and private sectors have benefited tremendously from the new economic freedoms in China, but have they pushed for political reforms as well? To explore this question, Margaret Pearson conducted extensive interviews with Chinese-born managers of foreign-sector firms and researched the activities of private-sector entrepreneurs.

She concludes that, contrary to the assumptions of many Westerners, these groups are not at the forefront of democratization or the emergence of a civil society. Rather, she argues, they are at the head of a new form of state-society relations in China, a hybrid of socialist corporatism and clientelism. Ultimately, she demonstrates that this hybrid pattern, which has deep roots in Chinese history, has been shaped by the Chinese state to ensure that economic development will not lead to democratization.

As private enterprises mushroom, foreign investment soars, and the standard of living continues to improve in China, all eyes are watching for changes in the political structure. The insights and studied predictions in this book will be invaluable keys to understanding the emerging dimensions of China's social and political future.