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In this provocative, important study, Dali Yang examines a wide range of governance reforms in the People's Republic of China, including administrative rationalization, divestiture of businesses operated by the military, and the building of anticorruption mechanisms, to analyze how China's leaders have reformed existing institutions and constructed new ones to cope with unruly markets, curb corrupt practices, and bring about a regulated economic order. Though still a work in progress, taken together these reforms, Yang argues, have improved the institutional environment for economic development and altered the landscape for China's ongoing struggle against rampant corruption. These measures are also likely to have important implications for the exercise of governmental authority and for China's future political development. As China's role on the world stage expands, the way the Chinese state conducts itself assumes increasing importance not just for those concerned about the welfare of the Chinese people but also for those interested in China's role in regional and world affairs. For readers interested in either China's domestic development or in the country's foreign relations, this timely volume offers much food for thought.