Deng has created a 'new' China on the firm basis of Stalinism, political Stalinism that is. This is a Communist Party-ruled state. Its aim is to build state-controlled capitalism. It has opened its doors in a controlled fashion. It is, in other words, not liberalisation. Capitalisation of economy is not the same thing as the lib-eralisation of economy. Deng seemed to believe that early corporate capitalism has no place for liberty or liberalism. The much-celebrated 1978 plenum of the Communist Party which began the new era in China was not the era of liberalisation. It was the era of making a determined bid to enter the club of advanced economic powers. What Japan and South Korea can do, China can do better. Why? Because China has a Communist Party. The 1989 Tiananmen Square incidents demonstrated what Deng and his comrades had in mind. It is possible to argue that in their view the June 1989 incidents were neither a failure nor any sign of weakening of the political structure. Economy grows out of the barrel of a gun if necessary and certainly out of authoritarianism. China is a determined, disciplined and hard state. Deng Xiaoping has made it that way. Only a Stalinist could have done that. It will be many years before it can change. This authoritarianism can collapse but cannot change, not in the short run any way.