The author has given the explanation why the private entrepreneurs of China are not demanding for democracy. She also gives the explanation why there has been a significant transformation in the political economy of China with the absence of the change in the regime. The author suggests that China cannot be the part of the models related to the political economy which exists from the previous times. It indeed gives the definition of the expectations related to some of the familiar explanations in the study based on some of the comparative models.
The book states that entrepreneurs in China have a limited power in comparison to the entrepreneurs of other nations such as England, France and United states. In these nations, the different entrepreneurs have raised their voice against the governments for fulfilling their material interests.
In order to implement the same, a number of unleashed democratic changes have been implemented which have benefitted the people. In case it is assumed that there are self-serving motives of the government behind the same, it is useful for the society as a whole (Tsai, 2007). Tsai clearly states that these things cannot be implemented on entrepreneurs in China as they are more dependent on the adaptive informal institutions. Because of the same, they are prevented from doing and implementing some of the changes which would prove to be beneficial for China as a whole. She has specified that those regulations in which the changes are implemented mostly benefit just the material interest and not the people. This process further promotes the ability of China to promote and encourage the growth of capitalism without invoking any kind of representative governance.