The

Chinese economy is currently undergoing a profound institutional

transformation-a quiet revolution. In a regulated environment geared to the

requirements of state-owned enterprises, the success of the private sector as

the main focus for economic growth is remarkable. State-owned enterprises are

currently being restructured based on market conditions in which private

firms are now permitted to play an important role. Fascinated by the

implications of this reform within the Chinese economy, the Asia-Pacific

School of Economics and Management of The Australian National University, in

conjunction with the China Center for Economic Research of Peking University

research team, conducted a large sample survey. Four study sites were chosen:

Beijing, Chengdu, Shunde and Wenzhou. Leading economists analyse the nature

and dynamics of private sector reform within the Chinese economy and make

recommendations for policy which support opportunities for growth and

investment.