ABSTRACT This article examines the intricate dynamics between authoritarian governance and human rights within the context of China’s evolving business and human rights (BHR) regime. Utilizing Ernst Fraenkel’s dual-state framework and new institutional theory, the study delves into the mechanisms through which China navigates the tensions between state control and the global human rights agenda. Through expert interviews and analysis of policy documents and digital media, the research uncovers the roles of government-organized non-governmental organizations, NGOs, and businesses in shaping China’s BHR landscape. The findings suggest that despite the challenges posed by China’s authoritarian system, institutional actors are taking a strategic and evolutionary approach to foster a BHR regime. This is characterized by a complex interplay between the normative and prerogative states, reflecting a nuanced adaptation of BHR principles within China’s political and legal framework. The article contributes to broader discourse on the integration of human rights into business practices in authoritarian contexts, offering insights into the potential for institutional change and the advancement of human rights within such regimes.