Most unexpected was the role that local communist officials played in the rural industrialization process. The rapid takeoff of China's rural industry was the result primarily of local government entrepreneurship. What lies behind this response of local cadres to reform initiatives? That is the central question posed by this book. This study seeks to illuminate how China's institutional changes-specifically, altering fiscal flows and property rights—prompted local officials in a socialist system to pursue rapid industrial growth. The book also seeks to understand the political consequences of such growth.