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This article compares the relative importance of political capital (in the form of membership in the Chinese Communist Party) and human capital (in the form of higher education) in urban China. Survey data from urban China strongly support two key elements of the intellectual New Class theory: intellectuals will have privileged access into the party, and the importance of education relative to political reliability will increase over time. The data also show how political capital and human capital are converted into high paying and prestigious jobs. There is also evidence of a separate path of career mobility: for the most socially prestigious jobs, a college degree—not a party card—is the key. Economic reforms of the post-Mao era are creating a gap between political power, on one hand, and social prestige and economic power, on the other. This gap can be expected to grow as the reforms continue.