Purpose: This paper addresses the increasingly important economy of China and its associated higher vocational education and training (HVE) system. More specifically, the paper aims to present the findings of a critical review of recent developments in the HVE system in Liaoning province. Design/methodology/approach: As part of this review, specific problems faced by Liaoning provincial and central government agencies in meeting the labour market needs of an economy in transition are explicated, as are current constraints in the implementation of the ongoing reform of the HVE system vis-a-vis economic reform. Predominantly secondary data sources were used to conduct the review and one of the authors was directly involved in their compilation. The review period was 1997-2003, which represented the time span between the enactment of the central government's vocational education law and the most current point in time for which statistics on HVE were then available. Findings: Preliminary findings provide evidence to support the view that the Liaoning HVE system has made a small but significant positive contribution to the growth and development of the provincial economy over the period. Equally, however, the findings identified a number of constraints to the effective operation of the HVE system which could serve to limit continued economic growth. These constraints exist in the form of a low degree of market orientation; an insufficiency of resources both intellectual and physical, stemming from a chronic lack of financial investment; a relatively low level of overall cost effectiveness and a poor image in terms of the perceptions of the population at large as to the value of HVE as a tertiary education pathway. It is the authors' view that the constraints identified within the Liaoning HVE system exist as a general set of constraints within the overall Chinese HVE system. Research limitations/implications: Understanding the nature of any labour market is a challenging and complex process and the authors are conscious that their preliminary review is deficient in a number of key areas. Firstly, further work is required to better understand the range and relative importance of the strategic drivers of economic and HVE reform in Liaoning province and China generally. Secondly, little has been said regarding the impact of the on-going state owned enterprises reforms on the performance of the Liaoning HVE system, notwithstanding the fact that the underlying cost effectiveness imperative is greatly affected by these reforms. Originality/value: Internationally, the Chinese economy is seen as a major driver of growth in the global economy. In light of this it is the authors' view that the findings of this preliminary review provide a better understanding of the issues relating to its continued development, specifically as they relate to reform of the labour market and associated HVE system. (Contains 3 tables and 2 notes.)