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This paper is based on the analysis of 18 testimonies given by xiagang workers turned entrepreneurs and published in the Chinese press in 2002. It argues that these narratives show the new ‘enterprise culture’, which is being promoted by the authorities. From these testimonies, this paper identifies new ways of thinking, judging and acting that can be said to characterise urban Chinese, now encouraged to draw on their own resources to compete in the open market. It is not just individuals but also the institutions inherited from the time of the planned economy that are having to adjust to the new economy and new society, and take part in the building of the market. The new configuration of the state apparatus and of the relationship between the state and individuals does not mean a less powerful state, but rather new modes of governing.