China's breathtaking ecomic reform, including the rise of private enterprise, has often led observers to assume that the country's ecomic system has been transformed into a capitalist ecomy dominated by private enterprise. A number of ecomic, political and policy trends demonstrate that the Chinese ecomy has become more market-oriented. Chinese statistics show a dramatic rise in the number of ostensibly private enterprises since the late 1970s. China w has stock exchanges in two cities and hundreds of Chinese firms w have listings in exchanges beyond the mainland. In 1978, capitalists in China were official class enemies but in 2001 they were welcomed into the Chinese Communist Party. China's once insular ecomy w imports more than one trillion dollars annually and is one of the top destinations for foreign investments. This book examines state-owned enterprises (SOEs) in China and the role they play in China's ecomy, politics and foreign policy.