Chinese economic growth has impressed observers during the last three decades and opened a question about its sources. This discussion concentrates on the Chinese economic model, labeled as a Beijing Consensus in the early twenty-first century, and on the international implications of Chinese growth.

The aim of this chapter is to evaluate the sources and characteristics of this model as well as to analyze the international consequences of Chinese growth. I will argue that the Chinese economic model is inspired by the development models of other East Asian countries. Its emergence was possible by the global political and economic conditions. China has developed its own original economic model that fits local conditions and answers the requirements of the Chinese foreign policy strategy based on geo-economic principles.

There are three approaches of analysis of the transformation from the statedominated to private-dominated economy. With the first approach scholars deal with the question of the right speed of the reforms. The second approach deals with the institutions. The proponents of this approach concentrate their studies around the question of institutional development that favor economic growth and allow the coexistence of different forms of ownership. The third approach is developed by scholars dealing with comparison studies. Especially interesting is the work of King and Schel é nyi who have described three forms of emergence of capitalistic structures in post-socialist countries. The first of these is capitalism from above, where the party and state elites try, through privatization of biggest enterprises, to construct a new market structure prescribed by neoliberal concepts. A classical example for this form of capitalism formation is Russia. The second is capitalism from without. The previous power elites cannot transform themselves into economic ones and the key role in economy is taken by foreign investors. An example is Hungary. The third form is capitalism from below. This is formed by a new class of entrepreneurs that emerged during the transition. An example is China. The new capitalistic elite does not question the old party position.