["International Journal of Finance &Economics, EarlyView. ", "\nABSTRACT\nThis study examines the impact of China's chain leader system (CLS)—a novel, institutionalised form of public–private partnership (PPP)—on corporate total factor productivity (TFP). The CLS formalises state–enterprise collaboration by appointing government officials as “chain leaders” and designating key firms as “chain masters” to jointly coordinate industrial chain development. We construct a mathematical theoretical model to analyse the system's effects on firm‐level productivity. Leveraging a staggered difference‐in‐differences research design, we find that the implementation of the CLS significantly enhances firm‐level TFP. The effect is more pronounced when provincial officials serve as chain leaders, when state‐owned enterprises (SOEs) act as chain masters, and in regions characterised by strong financial and economic developments. Moreover, productivity gains are especially salient in technology‐intensive sectors, highly competitive industries, non‐SOEs, and firms with a high degree of specialisation. Mechanism analysis further reveals that the CLS strengthens industrial chain integration, reduces coordination costs, alleviates financing constraints, improves access to commercial credit, and promotes R&D investment and collaborative innovation. These findings highlight the effectiveness of structured PPP mechanisms in improving industrial governance and fostering productivity in emerging economies.\n"]