Abstract: What makes the Chinese people regard selfmanagement as their first choice in market practice? This paper presents the assumption that selfaction is the fundamental drive that influences and determines this choice. The sense of autonomy arising from the Self is the subjective force directing the Chinese to favor selfmanagement as a way of market participation; whereas operating upon the relations among family members and friends from the relational rationality is the objective force determining whether social resources can be obtained, and thereby, selfmanagement can be realized. This assumption gives explanations for the two prominent characteristics of Chinese private enterprises: rapid growth and small size. It also allows us to make an extended explanation for the two alternative strategies (i.e., shared management and employment) that the Chinese take in their market participation, and their consequences as well.

Key words: operation upon the relations among family members and friends, relational rationality, sense of autonomy, egoism