Perspectives on crime and social change are limited because few studies have examined the transition from state socialism to a market economy. This article proposes an economic motivation thesis, arguing that the introduction of market institutions in the transition from state socialism to a market economy generates vast economic motivation as well as fundamental institutional change. The massive expansion of economic motivation is a primary source of increased crime in China. The introduction of market institutions also creates conditions known as 'institutional incompatibility' and 'institutional disorganisation', which create unprecedented opportunities for economically motivated crimes. This article provides historical evidence from China to illustrate the processes and to substantiate the economic motivation thesis.