This paper proposes a Confucian wisdom perspective to study entrepreneurship practice in the Chinese transistion economy. It argues that existing research on Chinese entrepreneurship has not paid adequate attention to qing (positive affects), which is an integral part of Confucian wisdom It is essential to invetigate qing and its interaction with li (reson relating to rules and regulations) and cognitive processes within the institutional context of the transition economy. To address this issue, this paper integrates traditional practical Confucian wisdom and Western institution theory to develop a theoretical framework for understanding practically wise entrepreneurship in China. The model is applied to the analysis of interview results with Chines entrepreneurs, who indicated that they applied Confucian wisdom in starting up and developing their businesses. This finding has theoretical and practical implications for entrepreneurship development and training.