¹ A very recent example is Kang, X. and Feng, L. (eds) (2011). ‘Observations of the Third Sector in China, 2011’, Beijing, Social Science Academic Press (in Chinese).Google Scholar

² See Defourny, J. and Develtere, P. (2000). ‘The Social Economy: The Worldwide Making of a Third Sector’ in Defourny, J., Develtere, P. and Fonteneau, B. (eds) Social Economy: North and South, Leuven and Liège, HIVA and CES, pp. 17–47.Google ScholarDefourny, J. and Develtere, P. (2009). ‘The Social Economy: The Worldwide Making of a Third Sector in Defourny, J., Develtere, P., Fonteneau, B., and Nyssens, M., (eds), The Worldwide Making of the Social Economy: Innovations and Changes, Leuven/Den Haag, Acco, pp. 15–53.Google Scholar

³ Laville, J-L., Lévesque, B. and Mendell, M. (2005). ‘The Social Economy: Diverse Approaches and Practices in Europe and Canada’. Available at: http://www.usaskstudies.coop/socialeconomy/files/Laville_Levesque_E%CC%81conomie%20sociale.pdf [Accessed 7 May 2012].

⁴ For example, Marée, M. and Saive, M.-A. (1983). Economie sociale et renouveau coopératif: définition et problèmes de financement, Travaux de recherche du CIRIEC, n° 83/07, Liège. Gueslin, A. (1987). L'invention de l'économie sociale, Paris, Economica.Google ScholarDesroche, H. (1983). Pour un traité d'économie sociale, Paris, Coopérative d'édition et d'information mutualiste.Google ScholarDesroche, H. (1991). Histoires d'économies sociales. D'un tiers état aux tiers secteurs, 1791–1991, Paris, Syros.Google ScholarDefourny, J. and Monzón, J.-L. (1992). Economie sociale-The Third Sector, Bruxelles, De Boeck.Google ScholarLaville, J.-L. (1994). L'économie solidaire—une perspective internationale, Paris, Desclée de Brouwer.Google ScholarVienney, C. (1994). L'économie sociale, Paris, La Découverte.Google ScholarFavreau, L. and Lévesque, B. (1996). Développement économique communautaire. Économie sociale et insertion, Québec, Presses de l'Université du Québec.Google ScholarBidet, E. (1997). L'économie sociale, Paris, Le Monde-Poche.Google ScholarMonnier, L. and Thiry, B. (1997), Mutations structurelles et intérêt général. Vers quels nouveaux paradigmes pour l'économie publique, sociale et coopérative?, Bruxelles: De Boeck.Google ScholarDeveltere, P. (1998). Economie sociale et développement, Bruxelles, De Boeck Université.Google Scholar

⁵ Borzaga, C. and Tortia, E. (2007). ‘Social Economy Organisations in the Theory of the Firm’ in Noya, A. and Clarence, E.The Social Economy: Building Inclusive Economies, Paris, OECD Publishing, p. 37.Google Scholar

⁶ See Hansmann, H. (1996). The Ownership of Enterprise, Cambridge, Massachusetts, Harvard University Press.Google Scholar

⁷ Borzaga and Tortia, ‘Social Economy Organisations in the Theory of the Firm’, p. 48.

⁸ Bacchiega, A. and Borzaga, C. (2001). ‘Social Enterprises as Incentive Structures: An Economic Analysis’ in Borzaga, C. and Defourny, J. (eds). The Emergence of Social Enterprises, London, New York, Routledge, pp. 273–294.Google Scholar

⁹ See Stiglitz, J. (2008). ‘Moving Beyond Market Fundamentalism to a More Balanced Economy’, speech at the CIRIEC 27^th International Congress, 22–24 September, Seville, SpainGoogle Scholar.

¹⁰ Defourny and Develtere ‘The Social Economy: The Worldwide Making of a Third Sector’, pp. 15–53.

¹¹ Chaves, R. and Monzón, J.-L. (2006). The Social Economy in the European Union, CIRIEC Study on Social Economy commissioned by the European Economic and Social Committee (EESC), CESE/COMM/05/2005, pp. 20–21.

¹² Chaves and Monzón, The Social Economy in the European Union, p. 21.

¹³ Mertens, S. (1999). ‘Non-profit Organisations and Social Economy: Two Ways of Understanding the Third Sector’, Annals of Public and Cooperative Economics, 70:3, 501–520.CrossRefGoogle Scholar Defourny, J. (2001). ‘Introduction’, in Borzaga and Defourny, The Emergence of Social Enterprises, pp. 1–28. Defourny, J. and Pestoff, V. (2008). ‘Images and Concepts of The Third Sector in Europe’, EMES Working Papers Series, No 08/02. Liege, EMES European Research Network.Google Scholar

¹⁴ For example, Cohen, J.-L. and Arato, A. (1992). Civil Society and Political Theory, Cambridge, Massachusetts, MIT Press.Google ScholarKeane, J. (1998). Civil Society: Old Images, New Visions, Cambridge, Cambridge University Press.Google ScholarSalamon, L. and Anheier, H. (1997). Defining the Non-Profit Sector: A Cross-national Analysis, Manchester, Manchester University Press.Google ScholarAnheier, H. and Kendall, J. (2001). ‘The Nonprofit and the Informal Sector’ in Anheier, H. and Kendall, J., Third Sector Policy at the Crossroads. An International Nonprofit Analysis, London, New York, Routledge, pp. 228–250.Google Scholar

¹⁵ Such examples can be found in Spear, R., Defourny, J., Favreau, L. and Laville, J.-L. (2001). Tackling Social Exclusion in Europe: the Contribution of the Social Economy, Aldershot, Ashgate.Google ScholarEvers, A. and Laville, J.-L. (2004). The Third Sector in Europe, Cheltenham, Edward Elgar.CrossRefGoogle ScholarPestoff, V. and Brandsen, T. (2007). Co-production: The Third Sector and the Delivery of Public Services, London and New York, Routledge.Google ScholarMonzón, J.-L. and Chaves, R. (2008). ‘The European Social Economy: Concept and Dimensions of the Third Sector’, Annals of Public and Cooperative Economics, 79:3/4, 549–77.CrossRefGoogle Scholar In the international debate, besides those aforementioned terms, some other popularly used terms underlying similar rationales and principles are concerned with the solidarity economy, the alternative economy, the popular economy. The emergence and usage of these concepts are culture-specific and context-bound to the different environments and socio-eonomic/political conditions around the world. For the purpose of this study, in the discussion that follows, the two most recognized concepts in China (the NPO/NGO approach and the third sector) will be considered.

¹⁶ Borzaga and Tortia, ‘Social Economy Organisations in the Theory of the Firm’, pp. 23–60.

¹⁷ For example, James argues that the centrality of the non-distribution constraint finds no corresponding weight in the legal and tax systems of most countries. Similarly, Defourny and Develtere stress that this principle loses much of its meaning in countries of the southern hemisphere, since tax legislation affects local community organizations much less. In fact, James finds that the non-distribution constraint may be overstated as organizations can cross-subsidize or engage in indirect profit-taking by increasing personal costs. It refers also to Steinberg and Gray's ‘for-profits in disguise’ case. James, E. (1989). The Non-Profit Sector in International Perspective, New York, Oxford University Press.Google Scholar Defourny and Develtere ‘The Social Economy: The Worldwide Making of a Third Sector’, pp. 15–53. Steinberg, R. and Gray, B. H. (1993). ‘The Role of Nonprofit Enterprise in 1992: Hansmann Revisited’, Nonprofit and Voluntary Sector Quarterly, 22, 297–316.CrossRefGoogle Scholar

¹⁸ Defourny and Develtere ‘The Social Economy: The Worldwide Making of a Third Sector’, pp. 15–53.

¹⁹ Borzaga and Defourny, The Emergence of Social Enterprises. Nyssens, M. (2006). Social Enterprise-At the Crossroads of Market, Public Policies and Civil Society, London, Routledge.Google ScholarDefourny, J. and Nyssens, M. (2008). ‘Social Enterprise in Europe: Recent Trends and Developments’, Social Enterprise Journal, 4:3, 202–228.CrossRefGoogle ScholarKerlin, J. (2009). Social Enterprise: A Global Perspective, Hanover and London, University Press of New England.Google Scholar

²⁰ Defourny and Nyssens (2006). ‘Defining Social Enterprise’ in Nyssens, Social Enterprise-At the Crossroads of Market, Public Policies and Civil Society, p. 4.

²¹ Borzaga, C. and Sanuari, A. (2001). ‘Italy: from Traditional Co-operatives to Innovative Social Enterprises’ in Borzaga and Defourny, The Emergence of Social Enterprises, pp. 166–181.

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²³ Dees, J. G. (1998). The Meaning of Social Entrepreneurship, Kansas City, Kauffman Foundation.Google Scholar

²⁴ Defourny and Nyssens. ‘Defining Social Enterprise’, pp. 3–26.

²⁵ Kerlin, J. (2006). ‘Social Enterprise in the United States and Europe: Understanding and Learning from the Differences’, Voluntas 17:3, 247–263.CrossRefGoogle Scholar

²⁶ European Commission (2011). ‘Creating a Favourable Climate for Social Enterprise, Key Stakeholders in the Social Economy and Innovation’, SEC (2011) 1278, Brussels, 25 October 2011. Available at: http://ec.europa.eu/internal_market/social_business/docs/COM2011_682_en.pdf [Accessed 7 May 2012].

²⁷ Noya, A. and Clarence, E. (2007). The Social Economy: Building Inclusive Economies, Paris, OECD PublishingGoogle Scholar. Borzaga, C., Galera, G. and Nogales, R. (2008). Social Enterprise: A New Model for Poverty Reduction and Employment Generation, Bratislava, UNDP Regional Bureau for Europe and the Commonwealth of Independent States.Google Scholar Defourny and Nyssens. ‘Social Enterprise in Europe: Recent Trends and Developments’, pp. 202–228. Noya. The Changing Boundaries of Social Enterprises.

²⁸ Borzaga, C. and Mittone, L. (1997). The Multi-Stakeholders versus the Non-Profit Organization, Università degli Studi di Trento, Dipartimento di Economia, Discussion Paper No. 7.Google Scholar

²⁹ Defourny and Develtere, ‘The Social Economy: The Worldwide Making of a Third Sector’, p. 26.

³⁰ Chaves and Monzón, The Social Economy in the European Union.

³¹ I thank Jacques Defourny for his inspiration on this point.

³² Besides the four aforementioned types, religious organizations and other organizations recognized by government are also regarded as NPOs in China. Cf. two recent Circulars issued jointly by the Chinese Ministry of Finance (MOF) and the State Administration of Taxation (SAT) (Circular Cai Shui [2009] No. 123 and Circular Cai Shui [2009] No. 122) concerning tax-exempt income in enterprise income tax of NPOs. According to the original text, the NPO referred to here ‘must be a public institution, social association, foundation, private non-enterprise unit, a venue for religious activities or another organization that is recognized by the MOF and SAT. The organization must be engaged in activities for the public interest or for non-profit-making purposes that are mainly conducted within the territory of China’.

³³ For example, Ding, K. (2007). ‘Social Enterprise: Practice in China’, in Social Enterprise. Overview: a UK and China Perspective, pp. 50–82. Chen, Y. (2008). ‘The Space for Social Enterprise Development in China’, Paper submitted to the ISTR International Conference, 9–12 July, Barcelona, SpainGoogle Scholar. Yu, X. and Zhang, Q. (2009). ‘Development of Social Enterprise under China's Market Transition’, EMES Conferences Selected Papers Series, ECSP-T09-15.

³⁴ These three models identified in an OECD report refer to ‘co-operative’, ‘company’ and ‘open form’ models (the latter meaning that no specific legal form is selected by the law). Cafaggi, F. and Iamiceli, P. (2009). ‘New Frontiers in the Legal Structure and Legislation of Social Enterprises in Europe: A Comparative Analysis’ in Noya, A.The Changing Boundaries of Social Enterprises, Paris, OECD Publishing, pp. 25–87.CrossRefGoogle Scholar

³⁵ Develtere, Economie sociale et développement.

³⁶ The modern term ‘society’ (Shehui) in Chinese stemmed from the name of the God of Land (She) in ancient China. The God of Land is one of the most widely worshipped gods among the Chinese.

³⁷ For more information on the historical development of charitable institutions in the Ming and Qing dynasties as well as the influences of their emergence on social life see Liang, Q. (1997). Philanthropy and Edification: Philanthropic Associations in Ming and Qing Times, Taipei, Linking publishing (in Chinese).Google Scholar

³⁸ On this point, Huang exemplifies ‘there were the public activities of old in water control, road maintenance, philanthropy, academies, dispute mediation, and so on. There were also the new activities of gentry and merchant elites, especially the reform-minded among them’. Huang, P. C. (1993). ‘Public Sphere/Civil Society in China?: The Third Realm between State and Society’, Modern China 19:2, 216–240.CrossRefGoogle Scholar

³⁹ On civil society and public sphere debate in Modern China, see Rowe Rowe, W. T. (1990). ‘The Public Sphere in Modern China’, Modern China, 16:3, 309–329.CrossRefGoogle ScholarRankin, M. B. (1993). ‘Some Observations on a Chinese Public Sphere’, Modern China, 19:2, 158–182.CrossRefGoogle ScholarWakeman, F. (1993). ‘The Civil Society and Public Sphere Debate: Western Reflections on Chinese Political Culture’, Modern China, 19:2, 108–138.CrossRefGoogle Scholar On proposing the concept of ‘a third realm’, see Huang, ‘Public Sphere/Civil Society in China?: The Third Realm between State and Society’, pp. 216–240.

⁴⁰ Yan's translation of Adam Smith's The Wealth of Nations was published in 1902. On Yan's Smith, one can consult Lai, C. (2000). Adam Smith Across Nations: Translations and Receptions of The Wealth of Nations, New York, Oxford University Press.Google Scholar In contrast with Yan's difficult writing style, Liang's figurative language and lively descriptive style of writing inspired numerous Chinese scholars. His work dramatically illustrated the forces that led to the introduction of western economic ideas into China. On Liang's economic thoughts Lai provides a comprehensive, valuable analysis. See Lai, C. (2006). The Economic Dimension of Liang Qichao, Taipei, Linking publishing (in Chinese).Google Scholar Moreover, Kang's idea of a utopian socialist society appeared in his book entitled Datongshu (The Book of Great Unity or Great Community, completed in 1902). Some scholars suggest that Mao's concept of the people's communes was based in part on Kang's book. See Trescott, P. B. (2007). Jingji Xue: The History of the Introduction of Western Economic Ideas into China, 1850–1950, Hong Kong, Chinese University Press, p. 28.Google Scholar

⁴¹ According to Lai, there were two channels by which the European co-operative system was introduced into China: the most direct way through Japan and the indirect route through Western Europe. Lai, C. (1989). ‘The Structure and Characteristics of the Chinese Co-operative System: 1928–49’, International Journal of Social Economics, 16:2, 59–66.CrossRefGoogle Scholar

⁴² Chen, H. (1937). ‘Cooperatives as a Panacea for China's Ills’, Far Eastern Survey, 6:7, 71–77.Google Scholar

⁴³ For more information on the YMCA's work, see Garrett, S. (1970). Social Reformers in Urban China: the Chinese YMCA, 1895–1926, Cambridge, Massachusetts. Harvard University PressCrossRefGoogle Scholar. For the various aspects of the Chinese Red Cross Society, see Reeves, C. (2007). ‘Grave Concerns: Bodies, Burial, and Identity in Early Republican China’ in Strand, D., Cochran, S. and Yeh, W.Cities in Motion: Interior, Coast, and Diaspora in Transnational China, Berkeley, Center for Chinese Studies, Institute of East Asian Studies, University of California, pp. 27–52Google Scholar. For the Rockefeller Foundation's work and the development of modern science in China, see Schneider, L. A. (1982). ‘The Rockefeller Foundation, the China Foundation, and the Development of Modern Science in China, Social Science and Medicine, 16:12, 1217–1221.CrossRefGoogle ScholarPubMed For missionaries’ work in China, see Fairbank, J. K. (1974). The Missionary Enterprise in China, Cambridge, Massachusetts, Harvard University Press.CrossRefGoogle Scholar

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⁴⁵ Trescott, Jingji Xue: The History of the Introduction of Western Economic Ideas into China, 1850–1950, p. 19.

⁴⁶ Ma, Q. (2002). ‘Classification, Regulation, and Managerial Structure: A Preliminary Enquiry on NGO Governance in China’, Paper submitted to the ISTR International Conference, 7–10 July, Cape Town, South AfricaGoogle Scholar.

⁴⁷ Under the household contract responsibility system, all rural families may ‘contract’ farmland from their rural collectives. They are given a quota of agricultural output, which should be handed to the state and the collectives involved. Going beyond the quota means economic reward to farmers themselves. Therefore, this system has greatly promoted agricultural production, and ensured the producers’ own decision-making power in management and their economic benefits. See Zhao, L. and Develtere, P. (2010). ‘New Co-operatives in China: Why They Break away from Orthodox Co-operatives?’, Social Enterprise Journal, 6:1, 35–48.CrossRefGoogle Scholar

⁴⁸ The People's Commune was the basic form of community in rural China during the centrally planned economy. After the initiation of the economic reform and transition, they were dismantled in the early 1980s and replaced by townships and towns.

⁴⁹ On the effect of the shareholding co-operative system on three dimensions of the co-operative system, see Zhao and Develtere, ‘New Co-operatives in China: Why They Break away from Orthodox Co-operatives?’, pp. 35–48.

⁵⁰ At that time, a great amount of rural surplus labour emerged, because the Chinese government did not allow rural people to migrate into cities, since the operation of the household contract responsibility system in rural areas liberated a great amount of rural labour.

⁵¹ Clegg, J. (1998). ‘Multi-Stakeholder Cooperation in China: Changing Ownership and Management of Rural Enterprise’, in Christiansen, F. and Zhang, J. (eds). Village Inc: Chinese Rural Society in the 1990s, London, Curzon Press, pp. 66–82.Google Scholar

⁵² World Bank (2006). China—Farmers Professional Associations Review and Policy Recommendations. Available at: http://documents.worldbank.org/curated/en/2006/08/7077878/china-farmers-professional-associations-review-policy-recommendations [Accessed 23 May 2012].

⁵³ Data available from the China Statistical Yearbook. To illustrate the significant increase in the number of social associations, some Chinese researchers use the following data: in 1989, the number of national social associations increased to 1,600 (16 times that of 1965), whereas the number of local social associations reached more than 200,000 (30 times that of 1965). See Wang, M., Liu, G. and He, J. (2002). Associational Reform in China, Beijing, Social Sciences Academic Press (in Chinese).Google ScholarWang, S. and He, J. (2004). ‘Associational Revolution in China: Mapping the Landscapes’, Zhejiang Journal, 149:6, 71–77 (in Chinese).Google Scholar Yu, K. (2008). ‘The Logic of Political Development during the 60 Years of China’, Guangming Daily, 3 June 2009 (in Chinese).

⁵⁴ Work units were the basic form of community in urban China in the centrally planned economy. They provided employment, daily necessities, social welfare, etc., and served multiple functions (economic, social and political).

⁵⁵ Melnyk, G. (2009). Walking Backwards into the Future, Saskatchewan, Canada, Centre for the Study of Co-operatives, University of SaskatchewanGoogle Scholar.

⁵⁶ A survey on the development of farmer associations notes that up until about 1994 there were very few farmers’ associations to be found, and there was no systematic activity to promote them. Shen, M., Rozelle, S. and Zhang, L. (2004). Farmers’ Professional Associations in Rural China: State Dominated or New State-Society Partnerships?, draft report for the World Bank. Cf. World Bank, China—Farmers Professional Associations Review and Policy Recommendations, p. 13[4].

⁵⁷ These challenges include: (1) a severe lack of social service delivery and financial service in rural areas; (2) agriculture's ecological sustainability crisis and land/food pollution; (3) vulnerable employment opportunities; as well as (4) dissolution of rural communities in the process of urbanization and industrialization. Zhao, L. (2010). ‘New Wine in New Bottles? A Quest to Understand Social Enterprise Complexity and Community-based Co-operative Innovation in Rural China’, paper presented at the International Conference on Social Enterprise in Eastern Asia: Dynamics and Variations, June 14–16, Taipei, TaiwanGoogle Scholar.

⁵⁸ By building upon the transaction cost theory of family farms, Valentinov suggests that the role of agricultural co-operatives is shown to help overcome family farms’ limitations in realizing economies of scale and to develop market power comparable to that of their upstream and downstream trading partners. This explanation of agricultural co-operatives is sector-specific in the sense that it traces the benefits of co-operative organizations back to the organizational attributes of agricultural production. The most fundamental sector-specific organizational attribute is the significant dependence of the agricultural production on nature, which causes the agricultural producers’ problem of low control over the processes and results of production and under-effective supervision upon their agents. Valentinov, V. (2007). ‘Why Are Cooperatives Important in Agriculture? An Organizational Economics Perspective’, Journal of Institutional Economics, 3:1, 55–69.CrossRefGoogle Scholar

⁵⁹ According to Article 2, they are social organizations established by enterprises, public service units, social organizations and other non-governmental forces and individual citizens with non-state assets to engage in non-profit service activities.

⁶⁰ The laid-off workers are mostly in the so-called ‘40/50’ groups, namely, 40-year-old (or over 40) women and 50-year-old (or over 50) men. It is especially difficult for them to be re-employed and re-integrated into the labour market.

⁶¹ Hu, A. and Zhao, L. (2006). ‘Informal Employment and Informal Economy in China's Transition (1990–2004)’, Journal of Tsinghua University (Philosophy and Social Sciences) 21:3, 111–119 (in Chinese).Google Scholar

⁶² Urio, P. (2010). Reconciling State, Market and Society in China: The Long March Toward Prosperity, London and New York, Routledge.Google Scholar

⁶³ Zhao, L. (2011). ‘Understanding the New Rural Co-operative Movement: towards Rebuilding Civil Society in China’, Journal of Contemporary China, 20:71, 679–698.CrossRefGoogle Scholar

⁶⁴ More information on this group of critical intellectuals can be found from China's New Leftist, an interview by Pankaj Mishra which was published on New York Times, 15 October 2006. Available at: http://www.cui-zy.cn/Recommended/Personalpapers/CuiNewYorkTimes.pdf [7 May 2012].

⁶⁵ Website: www.youcheng.org [accessed 7 May 2012].

⁶⁶ Website: www.naradafoundation.org [accessed 7 May 2012].

⁶⁷ Website: www.npi.org.cn [accessed 7 May 2012].

⁶⁸ Zhao and Develtere, ‘New Co-operatives in China: Why They Break away from Orthodox Co-operatives?’, pp. 35–48.

⁶⁹ Such collective actions to deal with water-use problems emerged within the context of the Chinese economic transition, involving cooperation between several interested groups. They include water users, township government officials and village and production group leaders.

⁷⁰ Kopstein, J. S. and Reilly, D. A. (2000). ‘Geographic Diffusion and the Transformation of the Post-communist World’, World Politics, 53:1, 1–37.CrossRefGoogle ScholarGleditsch, K. S. (2002). All International Politics is Local: The Diffusion of Conflict, Integration, and Democratization, Ann Arbor, Michigan, University of Michigan Press.CrossRefGoogle Scholar

⁷¹ Lés, E. and Jeliazkova, M. (2007). ‘The Social Economy in Central East and South East Europe’, in Noya and Clarence, The Social Economy: Building Inclusive Economies, p. 197.

⁷² Source: Asia-Pacific Co-op News 4, No.3 (July–September 1997).

⁷³ Zhao, ‘Understanding the New Rural Co-operative Movement: towards Rebuilding Civil Society in China’, pp. 679–698.

⁷⁴ Trescott, Jingji Xue: The History of the Introduction of Western Economic Ideas into China, 1850–1950, p. 18.

⁷⁵ Fukuyama, F. (1992). ‘Asia's Soft-Authoritarian Alternative’, New Perspectives Quarterly 9:2, 60–61.Google ScholarNeher, C. D. (1994). ‘Asian Style Democracy’, Asian Survey, 34:11, 949–961.CrossRefGoogle Scholar

⁷⁶ Chaves and Monzón, The Social Economy in the European Union.

⁷⁷ It is important to note that although all three types of Chinese NPOs indeed engage in investment and/or business activities, generally speaking, social associations and foundations are heavily reliant on government, while private non-enterprise units mainly rely on their own substantial profit-generating capacity and receive very little social donation. Cf. Irish, L. E., Jin, D. and Simon, K. W. (2004). ‘China's Tax Rules for Not-for-Profit Organizations’, A Study Prepared for the World Bank. Available at: http://unpan1.un.org/intradoc/groups/public/documents/un-dpadm/unpan042180.pdf [Accessed 7 May 2012].

⁷⁸ For example, the agricultural products produced by members of a FSC and sold by the FSC are exempt from value-added tax (VAT). The agricultural means of production and instruments sold by the FSC to its own members are exempt from VAT. Contracts for purchase and sales of agricultural products and agricultural means of production between the co-operative and its members are exempt from stamp tax.

⁷⁹ The ‘Number One Document’ refers to the first central document of the year, issued jointly by the Central Committee of the CCP and the State Council. During the period 1982–1986 and the years since 2004, there were Number One Documents that focused on rural development.

⁸⁰ Speech on promoting new rural construction at provincial leaders’ training session, President Hu Jintao, 14 February 2006.

⁸¹ The income ratio of urban-rural households in China has increased from 1.86 in 1985 to 3.33 in 2007.

⁸² See Birchall, J. (2003). Rediscovering the Cooperative Advantage: Poverty Reduction through Self-help, Geneva, ILOGoogle Scholar. Birchall, J. (2004). Cooperatives and the Millennium Development Goals, Geneva, ILOGoogle Scholar. Bibby, A. and Shaw, L. (2005). Making a Difference: Cooperatives Solutions to Global Poverty, Manchester, Cooperative CollegeGoogle Scholar.

⁸³ The ‘demonstration co-operatives’ refer to those certified by the government as good examples. They should fulfil a certain number of standards in order to achieve ‘good democratic management, big operational scale, strong service capability, excellent product quality, and positive public response’ (Notice Nongjingfa No. 8/2010).

⁸⁴ From the website of Ministry of Agriculture: http://www.moa.gov.cn/sjzz/qiyeju/tongji/201006/t20100606_1536229.htm [Accessed 7 May 2012].

⁸⁵ Cf. Cafaggi and Iamiceli, ‘New Frontiers in the Legal Structure and Legislation of Social Enterprises in Europe: A Comparative Analysis’, pp. 25–87.

⁸⁶ Ministry of Civil Affairs: 2009 Statistical Report on the Development of Civil Affairs Work.

⁸⁷ Spear, R. and Bidet, E. (2005). ‘Social Enterprise for Work Integration in 12 European Countries: A Descriptive Analysis’, Annals of Public and Cooperative Economics, 76:2, 195–231.CrossRefGoogle Scholar Nyssens, Social Enterprise-At the Crossroads of Market, Public Policies and Civil Society.

⁸⁸ Galera, G. (2008). ‘The Impact of Social Enterprises and Co-operatives upon Socio-Economic Development in Poland’, EMES Conferences Selected Papers Series, ECSP-B08–21. Galera, G. (2010). ‘Social Enterprises and the Integration of Disadvantaged Workers’ in Becchetti, L. and Borzaga, C. (2010). The Economics of Social Responsibility: The World of Social Enterprises, London, Routledge, pp. 105–122.Google Scholar

⁸⁹ Chan, K. (2008). ‘Creative Philanthropy: Development of Social Enterprise in Hong Kong’, EMES Conferences Selected Papers Series, ECSP-T08–18. Kuan, Y. and Wang, S. (2009). ‘Is Government Intervention Too Much? The Impact of Public Authorities on the Development of Social Enterprises in Taiwan’, EMES Conferences Selected Papers Series, ECSP-T09–02. Bidet, E. (2008). ‘The Rise of Work Integration and Social Enterprise in South Korea’, EMES Conferences Selected Papers Series, ECSP-B08–17.

⁹⁰ China Statistical Yearbook 2009, pp. 22–48.

⁹¹ Ministry of Civil Affairs: 2009 Statistical Report.

⁹² http://www.gov.cn/jrzg/2010-12/14/content_1765557.htm [Accessed 7 May 2012].

⁹³ The Chongqing municipal government refers to such firms as those with no more than 20 employees (including investors), whose investment reaches no more than 100,000 yuan. See: http://www.cq.gov.cn/zwgk/zcjd/233398.htm [Accessed 30 July 2010].

⁹⁴ http://www.xinhuanet.com/chinanews/2011-01/20/content_21909340.htm [Accessed 7 May 2012].

⁹⁵ Besides these two models, there exist also a small number of companies dedicated to fair trade products.

⁹⁶ FAO (2006). Rapid Growth of Selected Asian Economies: Lessons and Implications for Agriculture and Food Security, China and India, Bangkok, RAP Publication, 2006/05.Google Scholar

⁹⁷ http://www.nature.com/news/2010/100211/full/news.2010.67.html [Accessed 7 May 2012].

⁹⁸ Wen, D. (2006). ‘China Copes with Globalization: A Mixed Review’, IFG Report, California, San Francisco.

⁹⁹ Zhao and Develtere, ‘New Co-operatives in China: Why They Break away from Orthodox Co-operatives?’, pp. 35–48.

¹⁰⁰ In Chinese, the term social economy (Shehui Jingji) mainly refers to all activities related to production, distribution, exchange and consumption in society. In most cases, it is used as an attribute to modify another subject (‘development’, for example). Therefore, it is translated as social-economic (development).