During the past three decades, China has been transformed from one of the world’s most isolated and backward economies to the fastest growing and most dynamic. Since 1978, China’s GDP has grown by 10% per year on average. The Chinese economy was worth 21.09 trillion yuan in 2006 or 2.65 trillion dollars (China Daily, 2007). If the current growth momentum continues, China will overtake Germany to become the world’s second largest trading nation in 2008. The living standard of 1.3 billion Chinese people has been rising in general and particularly in coastal regions. The World Bank estimates that approximately 500 million Chinese people have been lifted out of poverty since 1980. Many people see China’s successful transformation as a result of China’s well-planned strategy to move towards a market system after Mao. But we can recall that China did not seem to have a crystal-clear vision as to where to go exactly when Mao died. Looking back, had China had any successful development strategy, it would have been the old Chinese wisdom of "groping for stones to cross the river" (Nolan, 2004). It is China’s entrepreneurial spirit, its humility to learn from the West, its courage to experiment new things, and its determination to never give up that have tuned China around after Mao. For almost three decades, since the founding of the People’s Republic of China (PRC) on October 1, 1949, China was in constant internal political turmoil where economic development had hardly been a real focus. In particular, the Cultural Revolution (1966–1976) ruined China’s economy and destroyed the moral foundation of Chinese society. In the mid-1970s China was isolated from the rest of the world and poor in absolute terms. Being poor was considered ‘‘glorious’’ in the old Communist China; a prevailing political slogan in China at that time was: "Prefer poor socialism not rich capitalism!’’ Private ownership and private business were