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The stability of the Chinese economy during the recent world economic crisis has attracted global attention. This essay examines the role of state-owned enterprises in China’s continued successful economic expansion. By comparing these enterprises’ performance with contemporary regulatory policies governing their American counterparts, the author, Yunhua Liu of Nanyang Technological University, finds that China’s strategy trumps that of the United States and concludes that in a transitional, developing economy, the existence of state-owned enterprises offers an adaptive, efficacious strategy.