ABSTRACT
No one foresaw that the “socialist modernization” that the post-Mao Chinese leaders launched would in 40 years turn into a real economic miracle. This chapter utilizes traditional Confucian concepts to discuss the nature of economic action in Chinese history and its relevance to political legitimacy. It debunks the Max Weber theory that the Confucian society cannot enjoy serious economic development. It also points out severe shortcomings of the Chinese development strategy, which creates huge income gap, widespread official corruption, the lack of experience for managing money and its role in the international monetary system.
