The purpose of this study is to examine youth gang phenomena in China employing a two-step approach. The first step is to apply the delinquent subculture perspective to the explanation of variation in gang involvement; the second is to investigate the relationship between youth gang involvement and self-reported delinquency. The data for the study were collected from face-to-face interviews conducted with adjudicated youth offenders incarcerated in a province-run juvenile prison. Structural equation modeling is used to assess the direct and indirect effects of delinquent subculture exposure and gang involvement on three outcome variables of delinquency. The primary finding is that exposure to a subculture of violence is indeed a significant predictor of gang involvement. Importantly, gang involvement is significantly correlated with both violent offending and drug offending.