This chapter provides a brief history of the Chinese Communist Party (CCP) before 1949, the socialist transformation of China in the Mao’s era of 1949-76, and the post-1978 market reforms. It then examines the system of government, describing its institutional components, the principles by which they operate, and the way in which the CCP controls the government. Next, it discusses the changing state-society relations in the People’s Republic of China (PRC) since 1978. While there has been continuity in the major government institutions and the persistence of one-party rule in China, there have been significant political changes in the post-1978 era due to the receding role of the state in society, the imperatives of market reforms, and the open door policy. This chapter shows some recent political developments and the move toward a stronger ‘society’ in China.