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In this provocative, important study, Dali L. Yang examines a wide range of governance reforms in the Peoples Republic of China, including administrative rationalization, divestiture of businesses operated by the military, and the building of anticorruption mechanisms. The author also analyzes how Chinas 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, Yang arugues, taken together these reforms have improved the institutional environment for economic development and altered the landscape for Chinas ongoing struggle against rampant corruption. These measures are also likely to have important implications for the exercise of governmental authority and for Chinas future political development. As Chinas role on the world stage expands, the way the State conducts itself assumes increasing importance not just for those concerned about the welfare of the Chinese people but also for those interested in Chinas role in regional and world affairs.