The Road to the Market Economy in the Socialism with Chinese Characteristics.

China's spectacular economic growth has a main explanation: after Mao's death the communist leadership took the road of market competition as way of innovation and economic growth. Leaders of the Chinese Communist Party wanted to change the economic regime without changing the political regime. They guessed that failures of Soviet and Eastern European regimes could be avoid if Party proved to be able to provide a better life for Chinese people. Communist Party leaders decided to use market competition and local institutional competition as engines of economic growth. They did not want to take the road of privatization but managers rights were separated from property rights and private enterprises were gradually allowed. The Socialism with Chinese Characteristics is a pragmatic and dynamic equilibrium between state control, competitive management of public assets and limited private initiative. Despite the rise of political corruption and social inequality, the approach has been successful so far. The élite has kept the power through a network of public and private managers hegemonized by the party. After the devastating disorder of the Cultural Revolution, order and harmony are again the core values of the Chinese political thought. Market society is now expected to be brought by Party State to full socialism in 2049 or later.