China’s Conflict between Economic and Political Liberalization

China’s impressive growth record has been facilitated by a unique relationship between Beijing and the provinces that encourages experimentation and incentivizes officials for driving economic growth—and for the most part this helped maintain political stability. While these arrangements spurred economic liberalization, political liberalization was put on hold. But rapid growth has not spared China from increasing social unrest given frustrations over widening disparities both in opportunities and outcomes and mounting conflicts over use of resources. Some now question the regime’s capacity to deal with society’s concerns. This paper examines recent politically charged events that have intensified discussions about the potential for economic and political reforms that would be acceptable to the Communist Party and still supportive of China’s broader objectives.