The stage of state-building in the labor sector at which a working-class movement arose is crucial for the subsequent development of state–labor relations. In contrast with the experience of western countries and authoritarian developing nations, the People’s Republic of China’s (PRC’s) strong pre-existing labor institutions pre-empted organized labor mobilization at the beginning of capitalist development. The state has since then carried out a bifurcated strategy that confers individual rights on workers but restricts their collective rights. The practice leads to a labor institution built on a hybrid of the old Leninist political structure of labor control and a one-dimensional labor rights regime, which has contributed to the lack of organized labor movements in contemporary China.