The book examines the evolution in the role of formal law through four decades of market reforms in China. It employs two layers of analysis: the market development macro layer and the corporate governance and capital market micro layer. The macro layer, Part II, establishes the analytical framework of the book. It shows how the law translates and secures political-economic power dynamics within the Party-state system. By examining the evolving functions of law through the different eras of market reform, the analysis shows how formal law supports the Party-state’s efforts to strike a delicate balance between its need for macro control, the interests of various hierarchies within the Party-state, and those of market participants, thereby configuring China’s unique socialist market economy. The micro layer, Part III in the book, implements the framework. It digs deep into the development of corporate governance and the Chinese capital market and considers how law and political economic determinants entwine in shaping the business environment in which public firms operate.

Drawing from a chronological study of an extensive archive of laws, regulations, policies and normative opinions issued by organs of the Chinese Party-state since economic reforms began in 1978 until the present, the book sheds a new comparative light on a long-standing debate about the role of law in China’s economic development and about the varieties of possible growth-supporting governance mechanisms.

Through its interdisciplinary approach, connecting deep knowledge about China’s political economy, law and development theories, and corporate governance practices, the book aspires to produce novel insights about the relationship between law, economic development, and politics in contemporary China.

** On the cover: The front face of the coin portrays the mythical ancient creature Xiezhi (獬豸), a symbol of traditional Chinese law that represents righteousness. Among its traits, Xiezhi is believed to possess a divine ability to sense and fight corruption.