Over the last 40 years, China's development has been breath-taking. Its poor, centrally planned economy has been transformed into a middle-income capitalist one with a strong resemblance to highly successful East Asian economies like Taiwan and South Korea. It is argued here that China had become a developmental state by the mid-1990s, showing most features of its predecessors. At the same time, differences such as its huge size, socialist past, and structural problems have made it increasingly clear that China s rapid growth rate is unsustainable. Instead of a strong and confident great power, one can only see a vulnerable giant with an inevitably decelerating economy.