Chapter 2 defines leadership and outlines a leadership approach to studying China’s politics and economy, centered on the top-ranked individuals in public-sector organizations. It explains how the autonomy of Chinese public-sector leaders originates from multiple sources: the discretion built into the CCP’s cadre management system, guanxi (关系) with superiors and allies, decentralization of authority in the Chinese bureaucracy, and policy ambiguity and uncertainty. It critically reviews recent studies of China’s politics and economy to uncover the importance and influence of leadership. It concludes by discussing how a leadership approach helps to account for divergence, inaction, and subversion in reform outcomes.