Abstract: “Gradual reform” is a formal term used by the Chinese Communist Party (CCP) for Deng Xiaoping's “feel the stones to cross the river” reform. The real reason that the CCP refuses to implement a fundamental reform is not the fear of social instability; rather, it is the lack of clear goal of the reform. In this article, I review the 37 years of gradual reform, compare it with the experience of other reforming countries, and argue that the gradual reform is inherently flawed and will not be successful. Corruption is an inevitable by-product of the reform. The current ideological foundation of the CCP is an illogical and incompatible combination of Marxist communism and capitalist market economics. Basing the reform on such a confusing ideology, the CCP is using its absolute power to silent opposition and to deter corruption on the one hand, and to grab more resource and create more corruption on the other, making China a nation of hypocrisy. This theoretically confusing and practically impossible reform will eventually lead China into disintegration and disaster.