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China is entering a new and complicated phase in its development. From a minnow in the 1970s it has become a mighty player on the global stage. It is likely that its role in the global economy and international relations will continue to expand. Today, despite its vast size, China is still a developing country. The country's leaders in the Communist Party of China face innumerable policy challenges. Key issues facing the Party are its role in the Asia-Pacific region and the ideological legacy from Karl Marx. The CPC is engaged in research, debate and reflection on both questions. This study provides a unique insight into these important issues for the evolution of China's political economy.