ABSTRACT
This chapter examines several main arguments regarding the relations between market transition and political transformation, and suggests that the existing scenarios about the transition from state socialism do not really explain the China model well. It introduces how nationwide spontaneous privatization was carried out in China, and how public property was privatized into the hands of the communist managerial elite and government officials. The chapter compares the China model with that of Russia and Central Europe, and it also argues the results of market transition from state socialism are not identical: in Central Europe capitalism appears without nomenklatura, in Russia it is comrade capitalism, and in China communist capitalism. The chapter analyzes possible outcomes of economic and political changes under, after communist capitalism, and suggests that it is precisely the communist indoctrination which now cultivates the gravediggers of the communist capitalists.
