Abstract: In 1956 the wholetrade joint stateprivate management was realized in China. However, it did not mean that the “socialist transformation” of private industrialists and businessmen finished. They were still labeled as “capitalists”, who had been forced to accept continued ideological remolding. During this process the status of “capitalist” was taken as one kind of political tool by the authorities. By defining the identity again and again, the transformation objects were in unsafe condition. In order to complete the transformation task, the businessmen were involved in frequent activities of political learning. But, learning was always performed as on kind of ritual process, in which political confession was more important than inner identity for the government and the coerced legitimate identity was established. This pragmatic political culture not only reflected an internal contradiction of different kinds of policies, but also was closely related to the later constant political instability.