The Two-Tier System of Property Rights and the Transitional Situation in China

Abstract

In the last ten years, the Chinese Communist regime has promoted a two-tier system of property rights. This system has transformed the basic way of life and mode of production of the entire peasantry, which comprises the vast majority of the national population, as well as affecting the way of life and mode of production of a considerable portion of the urban citizens. After the June 4 incident, because the Chinese Communist regime has not made the error of abolishing the two-tier system of property rights, or suspending reform and the open-door (or glasnost) line, it is possible that in the short and intermediate run, the Chinese Communists may maintain their regime. At the same time, the possibility is growing that the Chinese Communist regime would take to the road of economic liberalism under an autocratic regime.