Chapter 2 discusses prostitution in Chinese history and provides the context surrounding prostitution in contemporary China. Sex work has presented the state with regulatory challenges throughout most of Chinese history. In Imperial China (361 BC–1912 CE), prostitution policy varied based on the status of the men and women involved. In Republican China (1912–1949), the regulation of sex work was formulated primarily at the local level. Some local governments sought to abolish it, but they were more likely to license and tax it, or to establish state-run brothels. When the Chinese Communist Party (CCP) came to power in 1949, it moved swiftly to prohibit prostitution nationwide, and in the first few decades of the People’s Republic of China (PRC), prostitution was less prevalent and more hidden. Yet the scarcity of prostitution during the Mao era is best viewed as a brief historical anomaly. Sex work reemerged in the early 1980s, in the wake of Deng Xiaoping’s policy of reform and opening, and it has been integral to many of the country’s major political, economic, and social developments since 1979.