• Commentary
  • Research
  • Experts
  • Events
Carnegie China logoCarnegie lettermark logo
{
  "authors": [
    "Minxin Pei"
  ],
  "type": "other",
  "centerAffiliationAll": "dc",
  "centers": [
    "Carnegie Endowment for International Peace"
  ],
  "collections": [],
  "englishNewsletterAll": "asia",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie Endowment for International Peace",
  "programAffiliation": "AP",
  "programs": [
    "Asia"
  ],
  "projects": [],
  "regions": [
    "United States",
    "China"
  ],
  "topics": [
    "Democracy",
    "Military",
    "Foreign Policy"
  ]
}
REQUIRED IMAGE

REQUIRED IMAGE

Other

Beijing Drama: China's Governance Crisis and Bush's New Challenge

Link Copied
By Minxin Pei
Published on Nov 5, 2002

Source: Carnegie

China's leadership transition occurs at a critical juncture. Beijing's new leaders face an emerging governance crisis that consists of a decaying ruling party, deteriorating state capacity, and brewing regime-society tensions. This crisis originates in the fundamental incompatibility between the Chinese Communist Party's goal of perpetuating one-party rule and the market-oriented reforms it has pursued to achieve this goal. If left unresolved, China's governance crisis could lead to long-term stagnation and social instability. Beijing's new leaders must confront this crisis with long-delayed political reforms. Moreover, China's internal weakness poses a difficult challenge to the Bush administration and calls for a rethinking of the assumptions underlying Washington's China policy.

Click on link above for full text of this Policy Brief.

A limited number of print copies will be available.
Request a copy

About the Author
Minxin Pei is senior associate and codirector of the Endowment's China Program. He is the coauthor of Rebalancing United States—China Relations (Carnegie Endowment Policy Brief No. 13) and author of Future Shock: The WTO and Political Change in China (Carnegie Endowment Policy Brief No. 3).

About the Author

Minxin Pei

Former Adjunct Senior Associate, Asia Program

Pei is Tom and Margot Pritzker ‘72 Professor of Government and the director of the Keck Center for International and Strategic Studies at Claremont McKenna College.

    Recent Work

  • In The Media
    How China Can Avoid the Next Conflict

      Minxin Pei

  • In The Media
    Small Change

      Minxin Pei

Minxin Pei
Former Adjunct Senior Associate, Asia Program
Minxin Pei
DemocracyMilitaryForeign PolicyUnited StatesChina

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie China

  • Commentary
    China Financial Markets
    The Plaza Accord and Its Relevance for China

    The Plaza Accord was not an externally imposed punishment of Japan but part of a broader restructuring that Japanese economists and policymakers themselves recognized was necessary. Its effects were undermined, however, when Tokyo responded to the resulting slowdown with policies that exacerbated investment, credit expansion, and the very imbalances the adjustment was intended to resolve.

      Michael Pettis

  • The nuclear missile formation passes through Tian'anmen Square during a military parade on September 3, 2025 in Beijing, China.
    Paper
    Untangling the Nuclear Knot: A Constructive Agenda for Managing China’s Nuclear Relations with the United States and Its Allies

    The nuclear relationship between China and the United States is increasingly shaped by widening perception gaps rather than deliberate strategic design.

      Tong Zhao

  • Commentary
    China Financial Markets
    Who Paid for China’s Last Debt Cleanup, and Who Will Pay for the Next?

    China’s banking crisis in the 2000s was resolved by transferring the costs to households through financial repression—a decision that recapitalized the banks while exacerbating the structural imbalances that continue to shape the Chinese economy today.

      Michael Pettis

  • Robot arm with disposable test tube virus sampling in laboratory
    Commentary
    Caught in the Middle: Chinese Biotech Firms’ Divergent Responses to U.S. Sanctions

    Chinese biotech companies have been on the receiving end of U.S. economic coercion. Yet their responses have differed significantly because firm and state interests are not uniformly aligned. For Washington, treating all Chinese tech firms the same, irrespective of their actual interests, risks pushing them farther into Beijing’s corner.

      Xue Gong

  • An aerial drone photo taken on June 4, 2026 shows a wind-photovoltaic power storage station of Huadian Inner Mongolia New Energy Co., Ltd. as part of the Horinger data center cluster green energy supply demonstration project, in Hohhot, north China's Inner Mongolia Autonomous Region.
    Commentary
    Are Data Centers the Solution to China’s Renewables Excess Capacity?

    China’s latest energy plan explicitly calls for integrating data centers into the electricity system, particularly connecting them to green energy. It appears Beijing wants to use compute as a source of domestic demand to absorb renewables excess capacity.

      • Damien Ma

      Damien Ma

Get more news and analysis from
Carnegie China
Carnegie China logo, white
Keck Seng Tower133 Cecil Street #10-01ASingapore, 069535Phone: +65 9650 7648
  • Research
  • About
  • Experts
  • Events
  • Contact
  • Careers
  • Privacy
  • For Media
Get more news and analysis from
Carnegie China
© 2026 Carnegie Endowment for International Peace. All rights reserved.