This study examines the role of cultural values and political ideologies in the development of materialism, and the impact of materialism on subjective well-being, in the Chinese context. A survey was conducted of 487 persons in two cities in China and the results analyzed using structural equation modeling. The findings show that China's pragmatic version of socialist ideology and certain dimensions of Chinese cultural values influence the growth of materialism. In turn, materialism associates negatively with subjective well-being. The findings both provide new empirical evidence to support previous research results and expand understanding of the basis for materialism in China. The paper discusses a number of important public policy questions arising from the results.