Abstract

This paper aims to examine the mechanism of the birth of the capitalists and the role of the central and the local state in the reform era China. First, this paper argues that indepth research on the dynamic of the local state in the birth of the capitalists should be made if the analysis on the nation-state scale is to be persuasive in the real world. Second, this paper explains the particularities of Chinese socialism in the late 1970s compared with the former Soviet Union and East European socialist countries and defines the local state models like local state corporatism, entrepreneurialism, developmentalism, predatory state. Finally, focusing on the birth of Chinese characteristic capitalists, Meilaoban, this paper clarifies the role of the cadres and bureaucrats of Shanxi Province in transforming the state owned enterprises into the private enterprises in the coal mining industry and finds out that Meilaoban who are created by the local state commits the dispossession of the public assets to build a huge amount of wealth of his own.

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