This study reveals a distinctive Chinese cognitive model of political legitimacy, and analyzes how political leaders in Beijing have maintained its legitimacy through cultivating different elements of this traditional model. The central argument developed in this study is that so far the government in Beijing has shown remarkable adaptability to a changing political environment. However, the transition towards a market economy has redefined the meanings of the century-old cognitive model. Consequently, the existing system of legitimization is being seriously challenged. © 2003, Springer.