This chapter, serving as the introduction, begins by posing a series of pivotal questions to engage the reader and by providing a summary of the key points. The section on institutional divergence paints a broad, motivating picture of the divergence in institutions since the late nineteenth century between Japan on the one side, and Russia and China on the other. Both Russia and China initially emulated Japan’s efforts toward a constitutional monarchy. After outlining the nature of China’s institutional evolution, the chapter then emphasizes how the concept of institutional genes, stemming from both China's imperial legacy and the institutional genes transplanted from Soviet Russia, can be utilized to explain the rise and development of communist totalitarianism in China.

The establishment of the Bolshevik communist totalitarian regime in Russia in 1917 was facilitated by the existing institutional genes necessary for totalitarian rule, including the autocratic Tsarist system, the Russian Orthodox Church, and the secretive political organizations. Chapter 7 studies the origins and evolution of these institutional genes and it also examines their role in the failure of the Russian constitutional reforms and the genesis of communist totalitarian ideology and organization in Russia.

This chapter explores the keju system – the imperial examination system, and Confucianism as essential components of imperial governance and societal structure in China, examining their origins, evolution, and impact on the development of China's imperial system. The keju system, which persisted from 124 bce to 1905 ce, served as an institutional gene that fused Confucian ideology with state governance, thereby solidifying the emperor’s absolute ideological dominance. It established a societal hierarchy and unconditional obedience that suppressed individual rights and paved the way for the introduction of totalitarianism. In contrast, the Church in Western Europe, while influential, preserved a clear separation from state functions.

Constitutionalism and communist totalitarianism are both foreign ideologies and institutions that were imported into China. The failure of China’s attempts at constitutionalism cleared the path for the rise of communist totalitarianism. This chapter examines the shortcomings of the constitutional reforms and the Republican Revolution, as dictated by China’s institutional genes of the time. It reviews the ineffective Hundred Days’ Reform and the impact of Social Darwinism, which found deep roots in China’s institutional genes and profoundly influenced the later Chinese reception of communist totalitarianism. The text also discusses the unsuccessful constitutional reforms that lacked popular support and chronicles the collapse of the Qing Empire following the Xinhai Revolution. Additionally, the chapter analyzes the failures of the Republican Revolution, attributing them to the absence of those institutional genes necessary for establishing constitutionalism as well as to the enduring institutional gene of “secret societies,” which deeply influenced the revolutionary parties.

This chapter addresses the origins and evolution of the fundamental institutional genes in Chinese society that aligned with and supported the adoption and establishment of totalitarianism in China. Based on the analysis here, Chapter 9 explains the reasons for the failure of the constitutional reforms and Republican Revolution in China; and Chapters 10 through 12 expand on how these institutional genes and their variations allowed Mao Zedong to adapt Soviet-style classic totalitarianism into a uniquely Chinese form – regionally administered totalitarianism (RADT).

This chapter, addressing the methodological issues in the book, begins by defining the primary components of the institutions under study: human rights, property rights, and collective decision-making power. Inspired by mechanism design theory, the chapter then introduces incentive-compatible institutional change as an analytical framework. Building on this foundation, it delves into the concept of institutional genes, including its connection with path-dependency theory.

Chapter 10 investigates the establishment and growth of China’s Bolshevik Party, the core element in the communist totalitarian revolution and regime, that was orchestrated by the Comintern. The chapter commences with an examination of the inception and operational dynamics of the Chinese Communist Party (CCP) as a Comintern offshoot. It also addresses the reorganization of the Kuomintang (KMT) and the formation of the CCP-KMT alliance as key strategies implemented by the Comintern to bolster the fledgling CCP.

The narrative underscores the essential role the Chinese secret societies played in the development of the CCP’s organizational and military forces, following the directives of the Comintern and their implementation in practice. Additionally, the chapter examines the introduction of totalitarian rules within the CCP and its military branches, which fostered a reign of terror and enabled the rise of a totalitarian leader. It traces the initial establishment of a totalitarian institutional structure within the CCP and assesses the Comintern’s decisive role in fortifying the CCP’s ultimate leadership, suggesting its profound and lasting impacts on the Chinese political landscape.

Totalitarian systems, marked by extreme violence, are fundamentally bound to an ideology, such as Marxism-Leninism, which is instrumental to their creation and persistence, from the Bolshevik revolution in Russia to modern China. The chapter examines the genesis of communist totalitarian ideology in early Christian communal equality, connecting it to Rousseau’s and Babeuf’s anti-property ideals, which ultimately influenced Marxism and its vision of a dictatorial society in the name of absolute equality. The enduring pull towards egalitarianism, when pushed to extremes, can encroach on private property rights, ironically culminating in totalitarian rule and unprecedented inequality.

The final chapter reiterates the challenges posed by totalitarianism. By conducting coherent theoretical and empirical research into the origins and expansion of totalitarianism, this work strives to address these significant challenges that Mises warned about decades ago. This chapter summarizes the key insights drawn from both the empirical evidence and the theoretical framework of institutional genes that constitute a comprehensive methodological approach. The literature review distinguishes this book from other works in the fields of China studies, institutional analysis, and social science methodology. The two most extensive sections of the chapter examine the institutional genes and their evolution in Taiwan and in the former Soviet Union and Eastern Europe (FSU-EE). The former section sheds light on the pivotal role the institutional genes played in Taiwan’s transition from authoritarian rule to constitutional democracy, while the latter section explains the collapse of the totalitarian regimes in the FSU-EE countries and their divergent institutional transformations. The chapter also highlights the implications of the transitions in Taiwan and the FSU-EE countries for China’s future transformations.

This chapter examines the role of property rights as foundational institutional genes influencing social, economic, and political systems. It argues that the distribution of property rights, whether dispersed as those in ancient Greece and Rome or centralized as those in Imperial China, deeply affects the evolution of institutions such as the rule of law, constitutionalism, and democracy. Broadly held private property rights foster the development of these institutions, which become self-replicating over time. In contrast, centralized property rights lead to monopoly power and coercive institutions that not only frequently restrict individual freedoms but can also lay the foundation for totalitarianism. The chapter seeks to clarify the concept of property rights to offer deeper insights into these institutional dynamics.

Building on the institutional genes of the Tsarist autocracy, the Russian Orthodox Church and the secret political societies analyzed in the previous chapter, this chapter explores the origins of the Bolshevik Party, which was the first communist totalitarian party. It analyzes the Bolsheviks’ transformation from a secretive organization to a ruling totalitarian party characterized by a personality cult and Red Terror. The chapter then outlines the institutional prerequisites for the Bolsheviks’ seizure of power, noting the absence of constitutional backing for the Provisional Government and the appropriation of power under the guise of Soviet authority. Furthermore, the chapter details the consolidation of a comprehensive totalitarian system, including the suppression of opposition through dictatorship of the proletariat, the application of Red Terror tactics, the establishment of total state ownership, and the role of the Comintern in initiating communist totalitarian revolutions internationally, all of which were prerequisites for the creation of the Chinese communist totalitarian regime.