This book examines corporate governance reforms in China as an economy in transition - from a planned economy to a market economy - in the context of globalization and the country's accession to WTO. The author interprets China's experience as a gradualist transition strategy, which is appropriate given the existing constraints imposed by China's limited political, legal and regulatory framework. This approach also compares favorably with the radical privatization programme ("shock therapy") in Russia. In China, "institutional innovations" play a key role in discovering a better way to the market, even though such transitional institutions may not fully comply with a full market economy. Meanwhile, mutually supporting and complimentary structural reforms of China's enterprises, banks, and stock market should proceed hand in hand in order to achieve effective and sustained results during the transition.