This book analyzes how China's firms in the Consumer Electronics (CE) sector have developed their business strategy and corporate governance during the reform process. The CE sector is one of China's most important and dynamic manufacturing sectors. As one of the earliest market-oriented sectors after 1978, its experience illustrates the adoption of the Western model of management in China. It is the first book to analyze the link between business strategy, corporate governance and performance of firms, explicitly comparing state-, collective-, and privately-owned firms. The authors argue that the competitive dynamics of the market are central to the survival of firms in contemporary China.