Since 1992 when Deng Xiaping sped up China's economic restructuring, the logic of capital is said to have usurped that of the state. The Chinese case was often cited in critical literature to validate the efficacy of transnationality as a universal paradigm. This essay problematizes the explanatory power of this paradigm by reinserting the analytical tropes of "state" and "policy" back into a Chinese popular cultural studies that is being increasingly dominated by the tropes of "market" and "transationalism." Taking China's 1995 double-leisure-day policy as a point of entry, this essay (1) offers a new political economy of contemporary Chinese popular culture; (2) introduces a theoretical program of a combined policy studies and cultural studies that circumvents the binary mode of thinking characteristic of both classical Marxism and post-Cold-War liberalism; (3) elucidates the transformation of the state discourse in post-socialist China since 1992.