This paper examines the relationship between the Chinese state and Protestantism. It demonstrates that it varies widely from place to place; moreover, the actual relationship between individual churches and the local authorities that are supposed to govern them paints a quite different picture from that implied by the laws and regulations. The paper also argues that the state faces a dilemma: On one hand it feels threatened by the appearance of autonomous organizations such as unregistered churches, while on the other it values the contributions they make to society and recognizes that subjecting them to the Three-Self Patriotic Movement and China Christian Council would require a good deal of force and be very socially disruptive.