The study examines the effect of the dynamics of the world economy on transformation of the Chinese party-state system. It points out that global recession will bring political changes, just as global expansion led indirectly to economic transformation. The study builds the concepts of transformation of the system and the pace of transformation on an earlier interactive model of the party-state. It examines statistically the temporal and spatial inequalities in the rate of transformation that appear at various levels of aggregation, showing that the changes have proved sensitive to changes in certain economic indices. It points to the predominance of certain types of dynamics in the period examined and changes in the dominance among the characteristic types. The study takes into account the effects of the world recession when projecting the dominance of a new type of transformation dynamic, and sketches the likely effects of the new dominant type on the conditions for political transformation.
