Marketization and Party-State Transformation : How the Communist Party of China Outmaneuvered the Washington Consensus

When the Berlin Wall fell in 1989, China’s Communist Party faced terminal crisis — yet it averted collapse and engineered history’s most dramatic economic ascent by rejecting Washington’s prescriptions for liberal democratic transition and transforming the party-state into a Socialist Developmental State.

When the Berlin Wall fell in 1989, China’s Communist Party faced terminal crisis — yet it averted collapse and engineered history’s most dramatic economic ascent by rejecting Washington’s prescriptions for liberal democratic transition and transforming the party-state into a Socialist Developmental State. Formalizing the political logic of China’s marketization through a political economy model of endogenous talent allocation, the book demonstrates that the core instrument of the party-state’s transformation was not industrial policy but cadre policy. The strategic management of officials, shaped by leadership dynamics at the apex of the party, created the institutional impetus that drove China’s Socialist Big Push. Furthermore, the proposed framework contributes to the understanding of China’s post-2012 trajectory under Xi Jinping in relation to China’s growth momentum and political dynamics. The book will appeal to scholars and students of comparative political economy, economic development, and Chinese politics, as well as policymakers with a focus on Sino-US competition in the age of AI.