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Contemporary Chinese digital start-up enterprises present new realities rarely seen in other countries with rapid growth over a very short period. An outcome of unique economic, institutional, and social factors, digital entrepreneurs in China typically pursue short-term goals, seeking to position their enterprises for sale shortly after the enterprise becomes barely viable. What accounts for this unique phenomenon? We present a number of factors influencing the digital start-ups development in China. We also offer potential implications regarding government policy on promoting start-up businesses.

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