Abstract Political scientists and economists fundamentally disagree in their assessment of ideology in contemporary Chinese reform. Whereas the former emphasize its functional value legitimizing the overall course of reform, the latter warn of indoctrination and negative welfare effects. We argue that ideology is pervasive in China’s political economy of reform—past, present, and future.Moreover, a common assessment is both necessary and feasible. The presented case studies (loyalty signaling, message control, policy learning, and anti-corruption) underline the highly ambiguous role of ideology
oscillating between alignment and adaptation. In the end, ideology can unite or divide Chinese society as well as increase or diminish economic efficiency.