Focusing on the evolving relations between the state and market in the post-Mao reform era, Yongnian Zheng and Yanjie Huang present a theory of Chinese capitalism by identifying and analyzing three layers of the market system in the contemporary Chinese economy. These are, namely, a free market economy at the bottom, state capitalism at the top, and a middle ground in between. By examining Chinese economic practices against the dominant schools of Western political economy and classical Chinese economic thoughts, the authors set out the analytical framework of 'market in state' to conceptualize the market not as an autonomous self-regulating order but part and parcel of a state-centered order. Zheng and Huang show how state (political) principles are dominant over market (economic) principles in China's economy. As the Chinese economy continues to grow and globalize, its internal balance will likely have a large impact upon economies across the world.

'Yongnian Zheng and Yanjie Huang have produced a brilliant and unique study of the state and market in China, based on a profound knowledge of the history and modern evolution of China’s economic and political institutions. Their balanced and objective study provides a thoroughly distinctive analysis of the Chinese state and its relationship to the economic system. It should be mandatory reading for anyone with a serious interest in understanding China today and its development trajectory.'

Peter Nolan - Director, China Centre, Jesus College, University of Cambridge

'This study carefully explores the efforts of a centralized state to develop markets that, in modern times, adapted to a variety of free market mechanisms. The analysis of China’s ventures into all levels of a global economy leads the authors to new theoretical insights into the market’s impact on state development. It also shows how and why Chinese experiments have made an impact on our understanding of political economy. All students of contemporary China will find the study original and enlightening.'

Wang Gungwu - National University of Singapore

'Market in State is a magisterial work of huge ambition on which it delivers richly … Anyone seriously concerned with Chinese political economy should read this book carefully and grapple with it seriously.'

Marc Blecher Source: China Information