Unlike the idea of civil society, the concept of social capital has yet to
be widely used in the field of Chinese studies. Based on a case study of en
trepreneurial organizations in Suzhou, this paper illustrates the unique an
d complex process of social capital formation in reform-era China among the
newly emergent Chinese business elite. Entrepreneurs use social capital to
influence state policymaking and to forge a relationship between entrepren
eurial organizations and the state that involves a dynamic process of power
negotiation. The findings shed some light on how to revise thinking about
civil society and the state in contemporary China.