The present research is aimed at studying the impact of economic development on political development and expanding democratic values in People’s Republic of China. The article examines the role of political development and the emergence of the private sector in political development in the People's Republic of China between 1989 and 2023. According to the research hypothesis, despite the government’s efforts to increase the participation of the private sector, the middle class, and the civil society in managing different sectors of the country, there is no sign of the tenants of western model of political development – such as multi-party system, separation of power, and free elections – in China; furthermore, the private sector has increased the level of political stability in China. The findings of the present research indicate that the growth of private sector, the middle class, and the civil society has not led to serious opposition against the Communist Party of China and the expansion of democratic movements; in other words, the Communist Party of China has been able to preserve its legitimacy and prevent serious opposition through establishing close relations with non-governmental sectors and imposing strict supervision on them. Moreover, this kind of relation between the Communist Party of China and the non-governmental sectors has led to the maintenance of political stability during the last four decades. Therefore, the political and social development model in China is fundamentally different from what has been considered as political and social development in western countries. This research was done on the basis of library sources and the research method is explanatory-constitutive.