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When Deng Xiaoping launched China on the path to economic reform in the late 1970s, he vowed to build "socialism with Chinese characteristics." More than three decades later, China's efforts to modernize have yielded something very different from the working people's paradise Deng envisioned: an incipient kleptocracy, characterized by endemic corruption, soaring income inequality, and growing social tensions. China's Crony Capitalism traces the origins of China's present-day troubles to the series of incomplete reforms from the post-Tiananmen era that decentralized the control of...

The rise of China as a great power is one of the most important developments in the twenty-first century. But despite dramatic economic progress, China's prospects remain uncertain. In a book sure to provoke debate, Minxin Pei examines the sustainability of the Chinese Communist Party's reform strategy--pursuing pro-market economic policies under one-party rule.

Pei casts doubt on three central explanations for why China's strategy works: sustained economic development will lead to political liberalization and democratization; gradualist economic transition is a strategy superior to...