For this reason, some Chinese economists say that the last two years have been largely wasted from the standpoint of reform.

"Socialism is ridiculous," said a Chinese economist who often advises the party.

"Deng doesn't really have any of his own people in the leadership now," said a Chinese economist.

Chinese economists have argued that producers, in this case farmers, must be paid more for their products or supplies will begin to drop.

"They talk about reform, but there are no specifics," said a Chinese economist.

But diplomats here and Chinese economists say there is much more to the story.

The recovery is now well under way, but many Chinese economists worry that inflation will soon come roaring back.

"In the spring I really thought that things would gradually improve," said a Chinese economist.

"They have some smart people there, but they are not thinkers," a young Chinese economist said.

"China is a developing country, and there is a cost to free trade," said a Chinese economist.