Since the mid-1980s, China has embarked on a gradual yet profound transformation of its production system. At the heart of this process lies the reform of state-owned enterprises, initiated in 1984, which remains the most complex and fundamental component of the country’s economic restructuring. After three decades of socialism, industrial enterprises had evolved into self-contained “mini-welfare states,” providing employment, housing, healthcare, and social services to their workforce. The shift toward a market-oriented economy and integration into the global economic order has compelled these enterprises to undergo far-reaching changes in pricing systems, inter-enterprise relations, labor management, social welfare provision, and housing. Focusing on the case of Shanghai—China’s pre-eminent industrial metropolis—this study examines how national reforms have been implemented at the local level and how they have reshaped the city’s industrial landscape. By analyzing the specific trajectories of Shanghai’s industries, the book illuminates the tensions, contradictions, and strategic choices that encapsulate the challenges of China’s broader economic transition.