Today, China has a variety of enterprises. About 150 large enterprises are still owned by the governments, but they are run as modern corporations. Millions of small enterprises are privately owned and are competitive and dynamic, providing 80 percent of China’s exports to the outside world. Many of them evolved out of township and village enterprises. Some are hi-tech companies founded and managed by Chinese scholars educated overseas, but most have been established by local Chinese entrepreneurs. In addition, China is home to over 500,000 foreign invested companies. Based on detailed documents, Transformation of the Chinese Enterprises vividly portrays the transformation and evolution of China’s state-owned and non-state enterprises. It particularly highlights the entrepreneurial spirit of the Chinese populace in the face of the drastic changes that have occurred in China’s economic system since the outset of economic reforms in the late 1970s.