Introduction

The introduction explores the core tension in China’s economic policy: balancing market liberalization with strict Communist Party control. Since the late 1970s, China’s gradual embrace of market forces and private enterprise has puzzled observers, especially given the Party’s commitment to socialism. Although reforms under Deng Xiaoping opened the economy to trade and investment, the Party retained control, carefully managing the effects of these changes. This control tightened significantly under Xi Jinping, as he directed China toward greater state intervention, prioritizing national security over economic reform and openness. Chen Yun, one of China’s most influential reformers, offered a powerful metaphor to illustrate the Party’s approach: he likened economic liberalization to a “bird in a cage”—the bird, representing market forces, needs freedom to fly but also a cage to preserve the Party’s control. This metaphor captures the Party’s view of markets as essential tools for economic growth, yet ones that must be constrained to protect its control over the economy.