chapter  2
Toward a new framework: market-building as state-building
Pages 20

As a result of three decades of gradual institutional experiments, today’s China is conveying a clear message not only to its former communist counterparts but also to the entire world with its astonishing economic

success: The core notions of the Washington Consensus may not be disproven, but China has managed to work out a viable alternative. Whereas the Washington Consensus has long promoted the standard development model of “market and democracy,” China appears to have embraced a model of “market without democracy” or more accurately “market led by the non-democracy.” One leading China expert and sociologist, Nan Lin (2011), argues that while China continues to develop capitalistic capacities, the party-state has increasingly tightened control of the economy, and the synchronization of China’s political and economic systems has given rise to a “centrally managed capitalism.” The maturing of the China model of development and the recent rise of the Beijing Consensus has raised fundamental theoretical issues not only about the political-economic evolution of China itself but also about understanding varieties of capitalism and the state’s various relationships with capitalism in general. This chapter develops a theoretical framework of understand - ing the state-market relationships in China’s reform era, built on the theoretical insights from the current literature on the role of the state in the development of varieties of capitalism.