Cover Story: China’s Family-Run Businesses Face Succession Issues

China’s economic boom over the past four decades has driven the flourishing of private entrepreneurship and led to the emergence of tens of millions of family businesses that have contributed to the country’s rise as a global manufacturer. Now, many of these businesses are facing a common challenge: passing the baton to second-generation owners

Private businesses have proliferated in China since the 1980s, when the country intensified efforts to reform its economy and engage with the global market. While some companies have evolved into world-renowned entities, such as the heavy equipment maker Sany Group and the appliance manufacturer Midea Group, the majority remain small- and medium-sized family businesses in niche markets, primarily in manufacturing and trade.