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USSR and China approached privatization and market liberalization in fundamentally different ways. The Soviet Union's implementation of shock therapy was characterized by immediate price liberalization and mass privatization. This resulted in a chaotic transfer of state assets into the hands of newly minted oligarchs leading to severe economic instability, widespread unemployment, and a drastic decline in living standards. Conversely, China adopted a gradual dual-track system, allowing for a controlled introduction of market mechanisms alongside state-controlled sectors. Chinese approach prioritized maintaining state control, fostering economic growth, and preventing the economic shocks experienced by the former Soviet Union. China's ability to maintain political stability and implement phased reforms, particularly starting from a largely agrarian base, ensured that the party retained the commanding heights of the economy.