The paper discusses public enterprise reforms in China within the broad ambit of economic reforms therein. An attempt has been made to study privatization and non-privatization reforms, techniques and modalities of privatization, marketisation process of public enterprise in respect of mobilization of funds, operational and commercial autonomy and the post-privatization efficiency. The issue of equity and growth in relation to privatization and the labour related issues pertaining to privatization have also been studied besides discussing the comparative aspects of public enterprise reforms in India arid China to conclude, public enterprise reform in China has made a great headway. Small enterprises are being privatized first. Marketisation of public enterprises is catching up. The Government is minimizing its interface with public enterprises. Non-privatized public enterprises are undergoing restructuring. However, public enterprise reform has fit the air pocket in terms of slow removal of entry barriers, continuation of the burden of social responsibility on public enterprises, lack of adequate progress on establishing sound corporate governance system and integration of public enterprises with domestic and international capital markets.