This paper explores the emerging family business sector in China.Specifically,the paper has threefold objectives: (a) to explore how family businesses are catalysed and initiated by the socio-economic and structural changes that occur in the countrys transition process from a centrally planned system to a more market-orientated economy; (b) to examine policy initiatives sketched by the government in supporting family firms; and c) to investigate the impact of extant policies on family business development.