In the 1990s, China did move forward in FDI liberalization and in the area of restructuring urban SOEs. In this book, I assign a greater weight to rural developments than to these other developments in my explanation of the pace and the character of China's transition toward capitalism. The argument is that FDI and SOE reforms are fundamentally urban and, to the extent that entrepreneurial capitalism is rural in origin, rural policies matter more for China's economic transition.
