China's path of first decollectivizing agriculture, then creating township-village enterprises, then decentralizing and privatizing smaller state enterprises and opening special economic zones, and finally ending up with an export-led economy still dominated by nominally state owned manufacturing and extractive industry companies, looks very different than the Eastern European and Russian reform programs in the 1990's. Instead it looks more like the path followed by their anti-communist rivals in Asia which is characterized high capital investment, low rates of saving, low rates of profit, cheap, skilled labor in the initial phases, and a heavy role of government in subsidizing and directing industrial development.