The Environment for Entrepreneurship in China

This teaching note describes the economic, financial and political environment faced by entrepreneurial firms in China in the year 2002. The note discusses the economic reform process, the relationship between business and government , and challenges faced by the Chinese economy. The note also explains some distinctive features of Chinese corporate law and describes unique organizational forms used by Chinese firms. Finally, entrepreneurial financing and exit options are addressed in a survey of the venture capital industry and equity markets in mainland China and Hong Kong.