Thetownshipandvillage-ownedenterprises（TVE）inruralChinahavebeenregardedasbothanengineoftheChineseeconomyandanimportantcontributortothesuccessofChineseeconomicreform。Theywereestablishedbythetownshipandvillageauthoritiesinthe1980stoachievethreemainpurposes：toprovidegovernmentrevenue，toincreaseruralresidents’income，andtocreateemploymentopportunitiesforthetremendousruralsurpluslaborforce。TheextentoftheachievementsofthesethreeaimswasconventionallyusedtomeasuretheperformanceofTVE。TVEpursuedsimultaneouslymaximumprofitandbusinessviability。