The second paper in a three-part series examines the decision-making process in China. The party-state dual model of governance is the basic institutional framework to understand how decisions are made and how the Chinese government operates. With its huge, highly institutionalized nationwide network that infiltrates into all institutions and organizations, the Communist Party of China tightly controls the administration, congress, judiciary, military, media, social organizations and all other entities in Chinese society. This paper guides the reader through the history of China's party-state dual model of governance and examines how this structure has engendered a unique and complex decision-making process at all levels, from the National Congress to village groups.