| Social transformation is one of classical subjects of sociology. The researchers also bear the responsibility for sociology. A lot of social facts offer researchers many chances to take diverse perspectives and research methods. Based on these, researchers have revealed the general path of social transformation: from a traditional society to modern society. But most of the studies are under the background of developed countries which usually overlook what happened in other countries. In fact, particularly since the 1950s social changes in developing countries have been showing different features from developed countries.Since the 1980s, with the advancement of China's open and reform, fundamental social transformations have taken place in China. In this process, the distinguished features of social transformation of China attract more and more domestic and foreign scholars. They have provided many theoretical frameworks and important ideas. They described some features of the social transformation of China from different angles. However there are two main defects of their research. First, they depended on Western theory excessively; secondly, their studies have not revealed the complexity and diversity of social transformation of China. In sum, these studies always face such challenges: What is the trend of China's development? Will it follow the path of the western civilization or it will develop in its own way? These questions are also main puzzles for the author. However, in the author's opinion a detailed and rigorous case study may be a good choice.Therefore, this dissertation does a case study on the formation and development of the rising merchant group in Yiwu. The author will examine the impact of this group on the economic, political, social, cultural lands of the local society, and basis on these, attempts to shed light on the specific path of social transformation of China, actors logic and possible trends and other important issues.This dissertation uses the state-society relation's approach which is widely used in political sociology. First, because it largely reflects two important agents within social transformation of contemporary China including regime forces (the Central ones and local ones) and civil forces (existed in the economic, political, social and cultural fields and so on). Secondly, this analytical framework makes comparison possible between the social transformation in China and Western states. Perhaps it is this comparison that can find the characteristics of the social transformation in China. As a research strategy, this dissertation does not assume the existence of a mature "civil society" in contemporary China. In contrast, it supposes that the general trend of social transformation of China is that the traditional power of the State which used to control society is gradually weakening while civil society began to play an increasing role. At the same time, this dissertation also tries to transcend the Dichotomy of state and society while the alternative approach is to see the State and society as two extreme poles within a continuum. Among this continuum, the pole of State represents that Society is under the control of State totally, and the other pole of Society means that a liberal pluralism, and even the anarchism.In fact, the relationship between State and Society during a specific time in a country (including the ones which are in transition) should exist in a specific location within this continuum. Where the specific location existed depends on the Comparing relationship between the State and the social power. This framework assumes the relationship between State and society is dynamic and interactive. Therefore, it is appropriate to use it to analyze the social transformation of China. And it will use some important concepts such as governance, agent, civil society, social capital, social conflict and game theory.After description and analysis of this case, this dissertation finds emerging merchant groups played the "first cause" in the process of local social changes in Yiwu city. In the context of economic transition since the reform and opening up In China, at the start, Yiwu businessmen (at first they were farmers who began to do business) took some tough, sustained and non-violent ways to negotiate and consult with the Government in order to maintain and implement their own interest, and these efforts eventually led to a moderate and progressive government reforms. These businessmen turned from farmers added up their seemingly small efforts which become the main forces improving the changes of the relationship between State and Society. In this process, local governments become more and more proactive for institution supply and coordination. But to a large degree, weather these efforts are productive depends on recognition and approval of the civil society of which the merchant groups is the main component. The relationship between State and Society reached a balancing situation to a certain degree which is similar to the Tocqueville's expectation "restricted public rights".State controlling society remains the general features of Chinese politics. In this context, the Government is still making the final decision for the institutional supply and arrangement. But changes happened. For example, in the past, the Government can make the institutional supply and arrangement without considering the opinions from the society while now it becomes a game which is played by the Governments and the social agents and this game continues to expand with economic development. Civil forces dominated by merchant groups began play an active role in political, economic, social and cultural fields. It indicates that through the promotion of economic democracy, the political democracy and social democracy all made a big progress. Emergence of each new issue of public policies enhances this new interaction pattern between State and Society at different levels, and this new pattern is gradually consolidated. This makes the local society continue to exhibit the characteristics of modernity, as well as a clear development path which can be found. That is, Yiwu business groups and Yiwu local government, as two of the main forces in achieving Yiwu model, are indispensably complementing each other. Regardless of the different characteristics that the specific relationship between the two will render, it ought to be the key element throughout to maintain a relative balance of power keeping them under interactive restraint. How Yiwu model will develop in the future and how transformation or changes in the local community will continue to evolve, to a large extent, depends on the relationship between the social forces with the business groups as an important component and the local government representing the power of the state.Of course, these conclusions are only some preliminary findings from the author's study on this subject. In order to complete this study, this case itself also needs to be continued to pay attention, and more observations are needed while continuous attention is necessary.
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