Abstract
This article sets out to further our understanding of the politics of economic reform in China by focusing on just one area - labour - and within that, one specific policy-the attempted introduction of a “labour contract system” into state industrial enterprises. The general aim of China's reformers is to create a new system of labour allocation and employment which will improve productivity and increase the flexibility and dynamism of state industry. To these ends various reforms have been introduced, the most important of which are:

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