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I take the New Policies period (1068-1085) to be a critical juncture in Chinese history during which, for the first time, the Chinese state initiated systematic intervention into the market. This period witnessed the failure of plans to shape the collective action of bureaucrats and coordinate market actors through a host of organizing mechanisms. I explain why the policy makers in this historical process failed to incorporate and organize the ideas and interests of social actors, political elites and relevant bureaucracies into the state’s authoritative action. I argue that this failure was an outcome of the interaction between the political philosophy of the drafters of the New Policies and their historical context. In particular, it was a result of the incapacity of the drafters’ worldview to correctly explain and resolve unexpected problems in the policy environment, including the influence of political philosophies that were in fundamental conflict with the ideas of Wang Anshi, as well as the reaction of political elites to the New Policies, the rationales and behavioral modes of bureaucrats in financial markets and state monopolies, and unpredictable changes in the marketplace that bedeviled bureaucrats.