China's intricate relationship with the world economy is still evolving and has yet to be sufficiently explained by any models. From the source of cheap labour for export-led industries China has now emerged into a serious competitor in areas which are traditionally exclusive to advanced capitalist economies. Contrary to popular belief, China's state sector has not disappeared or marginalised after decades of market reform but becomes leaders in strategic sectors and the driver for investment-led growth. However, heterodox political scientists have long argued that this is at best a variant under global capitalism but not a challenger. This paper ooks at the anomalies of Chinese “capitalism” and argues that primitive socialist accumulation is in place and is contending capitalist accumulation.