Party-state Capitalism, written by six prominent conomists in Taiwan, has been an influential book, and its advocation of sweeping liberalization typifies the current thinking in Taiwan's academic circle. Thus, it is worthwhile for us to evaluate its views carefully against the historical background. The book manifests strong anti-KMT party-state political tendency, but its views on policy was based on the theories of the neoclassical economics. That theory focuses mainly on economic efficiency of resource allocation and hence unable to provide full support to its political views. On the one hand, its discussion ignored the entire development literature which emphasizes the role of state in substituting the yet-to-develop market in developing countries. Lacking historical perspective, the book puts sole emphasis on the party-state, and thus neglects the fact that the large businesses are becoming stronger partners in their relationship with the party-state, and hence overlooks the role of the large businesses in pushing liberalization. On the other hand, the book disregards the long-standing debate on public policy between the pro-intervention and the pro-market camps, and presents only the pro-market side which happens to be the popular trend during the 1980s in the West. In today's Taiwan, the old authoritarian party-state disintegrating and reorganizing itself, hence should not be the sole focus of attention, as was the case in the book. This perspective also led the book to reach the conclusion of total liberalization, and hence ignored the need to have more sophisticated policy analysis in the present circumstances.