Corporate governance in China: Explosive growth and new patterns of ownership

China is simultaneously growing and transforming from a command to a market system. The process of reform began earlier than in Eastern Europe, but the state owned enterprise sector remains an intractable problem. What has accounted for the remarkable rate of economic growth sustained over the last 20 years, are the spontaneous entrepreneurial efforts of the collectively owned Township and Village Enterprises (TVEs), and the Private and Individual Enterprises (IOEs). Together with the widespread distribution of shareholding, this could represent the foundations of a stakeholder economy. The success of further economic reform will depend on the perception of the Chinese people's stake in the future of their country.