Although ethnic governance in the People's Republic of China is often portrayed as a matter of controlling “minority nationalities” in the country's frontier regions, the ethnic affairs bureaucracy operates in every province. The origins of “nationalities work” as a discrete domain of governance can be traced to the Chinese Communist Party's efforts to mobilize scattered Hui communities in the eastern provinces of Shandong and Hebei in the 1930s–1940s. Thanks to the initiative of Hui Communists, local Party leaders came to understand that Hui were not simply scattered but interconnected. They adapted and replicated organizational methods to exploit Hui networks for gathering intelligence, smuggling goods and penetrating enemy-controlled cities. This history offers an instructive case of adaptive governance in the revolutionary period and the role of ethnic minority cadres in policy entrepreneurship. It also underscores the importance of the Party's experience in eastern China in the study of Chinese ethnic policy.