AbstractEnsuring the accountability of state agents requires the use of reward and sanction. Like other authoritarian regimes, the Chinese Party-state faces a dilemma in dealing with malfeasant agents: unprincipled tolerance undermines the regime’s legitimacy, but disciplining officials may demoralize agents and result in the loss of state investment in them. Given this dilemma, selective or differentiated discipline becomes a logical choice. Using the case of social conflict management by local officials, this article explores the political rationale behind the use of selective discipline in China. It finds that two factors significantly affect the likelihood of an official being punished for mishandling social conflict: the severity of the consequences of the official’s failure, and his or her role in the failure.