The article discusses corporate governance in China, focusing on state-owned companies. It explains the importance of good corporate governance and the challenges faced, such as the agency problem. Key factors for good governance include the board of directors and market information. The paper traces the impact of reforms in China on corporate governance, noting improvements but also ongoing challenges like fragmented ownership and poor information quality. State-owned companies face difficulties due to conflicting priorities. Despite progress, Chinese corporate governance still has room for improvement.