In this volume of concise and informative essays, leading specialists examine the nature,
impact and prospects of China's post-1978 party±market symbiosis. Criticizing the collapse
thesis derived from Eastern European conditions, it argues that economic liberalization has
created new forms of interdependency between the state and market in China. The
corollary is that party cadres have developed a new and useful role as facilitators of
market transactions.
Since China did not take the big bang route to economic liberalization, cadres retain great
discretion over the fate of fledgling private enterprise. So, despite their objective economic
importance, China's entrepreneurs remain politically passive (Young's chapter). Oi argues that
it is naive to assume that the state merely encumbers and preys upon private enterprise. She
shows how village businesses are helped by a primitive form of `administrative guidance'
commonly associated with Japanese industrial policy (pp. 69±72). From the perspective of
property rights and their reassignment, Walder's essay demonstrates the spatial redistribution
of power favouring provincial cadres (vis-aÁ -vis Beijing) and local and enterprise level cadres.
Owing to her gradual reformism, China has not suffered the scale of social dislocation
witnessed in Russia's transition. Nevertheless, within the overall improvement of living
standards, reform has produced social discontent from those who have lost status and income,
notably public sector employees (see the essays by Ma, Unger and Kent). In playing a
facilitating role for market transactions, cadres have derived considerable personal profit. This
`visible hand' of the cadres has attracted much popular resentment and undermined the
legitimacy of the Chinese Communist Party (CCP) now trapped between its egalitarian roots
and the international democratization wave.
While overt opposition has been effectively contained since 1989, economic liberalization
has nevertheless created the potential for further social protest. Much will depend on the
CCP's readiness to accommodate nascent social forces (with workers, as discussed by Chan,
for example) into some meaningful channels of consultation and grievance redress, which in
turn raises questions about the future shape of the regime and the role of the party within it