When most of China’s major cities are suffering from smog, people startto cry out for environmental improvement. The significance of Corporate SocialResponsibility (CSR) has become one of the hottest topics in China. CSR andshareholder primacy are widely debated idiosyncratic areas of corporate legislation.China’s approach has thus far been unclear in both areas. This paper first considersall related provisions in Chinese commercial law in order to identify China’sapproach (law on the books) from the legislative perspective. Then, based on thisconclusion of the schizophrenic Chinese corporate law, it further examines theenforcement of shareholder primacy and CSR laws using empirical methods (law inaction). Finally, the efficacy of the current approach is analysed and assessed from apolitical economy perspective. The article concludes that it would be efficient forChina to follow existing statutory requirements and imperatives. Moreover, Chinamust correct practitioners’ modus operandi in order to improve the rule of law.Social responsibility issues should, for the time being, be tackled outside the cor-porate law box rather than by meddling with already confusing director duties.

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• Inside or Outside the Corporate Law Box? ShareholderPrimacy and Corporate Social Responsibility in China