Western decision makers once held the belief that economic openness and prosperity could ultimately result in a democratic China, and such an idea provided important justifications for engaging China into the global economic system. Today China is the second largest economies in the world and one of the major supporters of globalization. However, the country has not made significant progress in political openness in the past few decades. This paper attempts to delve into the puzzle why economic openness and development fail to promote political openness and liberalization in China. It argues that the country’s current socio-political structure and international context form an unfavorable combination that gives the ruling-class no major incentives to consult with social classes especially the middle class. While a strategy engaging China into the liberal economic system is justifiable, the insufficient time and effectiveness to implement such a strategy importantly explain China’s political status quo.