ABSTRACT
The state has always dominated the form of property rights in China, while the weak contractual and property right protection relationship between civilians and feudal lords failed to produce a stable form of property rights and the corresponding capability of independent negotiation throughout the evolution of feudalism. In comparison, feudalism in Western Europe presented another picture, mostly distinctively characterized by establishment of the contractual relationship between feudal lords and civilians before the emergence of states. The natural transmission of the protection of property rights from feudal lords to the state made the most attractive story in the whole process. The economy subject to market-oriented reforms is placed in a dual structure, consisting of the powerful state and the understructure with increasing economic freedom. The state functions as the major pusher for savings mobilization, capital formation and economic growth, while the funds for economic growth are insufficient in most cases.
