In order to help the students better understand the causes and consequences of the economic development in contemporary China, this course examines this phenomenon from both historical and comparative perspectives. The course starts by reviewing the formation of a vibrant market economy in China from 1700 onward and introduce progress made in the studies of Chinese economic history. This historical background is important to view the socio-economic characteristics of the pre-1949 Chinese society and their relevance to modern economic growth. This course also exposes the students to the basic concepts and analytic tools in political economy such as market economy, the state, conflict of interests, correlation and causality, and selection bias. This illustrates the importance of causal explanations in social scientific inquiry.