China's economic model is very fascinating, to say the least. One of the most witty sentences I've ever read came from an M.I.T professor who said something in his book about the economic model of china.
He was also Chinese-American, this professor, and what he said was that what China has as its a model is one that can be called Capitalism with Chinese Characteristics."
Now this is fascinating because what China itself would tell you that its economic philosophy is, is what they call "Communism with Chinese Characteristics" because we all know that China associates mostly as a communist country than a capitalist one.
But according to this professor and--the opinion shared by a lot of experts around the world--China's communist philosophy is just a mere facade, and what it really operate is capitalism.
You see it all goes back to Mao Zedong--of course as with everything in china.
When Mao carried out his revolution, he was of course high off the writings of marx and engels and Lenin, and of course he even significantly added his own literature to the communist oeuvre. So the chinese revolution was one that was carried out under the auspices of communism. And when Mak became supreme commander of China he made China a communist state, with its model as unequivocally communist.
But as time went on the economic situation in china began to fail. People were dying of starvation and things were not working out as well as they wanted it to. China was becoming like the USSR and other communist experimentS-- a collosal failure.
Ant then this was where Deng - came in. Deng realised that a full-blown communist model was never going to work in china. And so he said, famously, that why not have a free market in china. According to him it doesn't have to undermine the communist principle but would strengthen it. So basically he was saying that China can be a communist country while still operating a free market.
And the experiment became a success.
China still operated with the flag of being a communist country while it also allowed corporations and all the other competitions that came with a free market government/society. And Deng choose the system that he invented "Communism with Chinese Characteristics."
But like I said various economic analysts since then who have observed China--such as the MIT professor I mentioned earlier--have commented that what the Chinese really have isn't really "Communism with Chinese Characteristics" but the exact opppsite: Capitalism with Chinese Characteristics.
Brilliant isn't it?
China follows a path of its own that is not exactly capitalist, as we could understand it in the West, since it is a mixture of a police state that maintains an iron grip on media and what can and can not be said (the same thing happens in the West). , but not in a police way, but through political correctness, but that is another issue), and in which there is a system organized around many state-owned companies, or private companies but that from a certain size are required to have a representative of the PCC in-situ. There is private investment and market, of course, but the Party remains the communist. It has elements of corruption and corporatism both on the capitalist side (budding capitalism) and on the communist side, and on the other hand, it has two extremely powerful institutions, the PCC itself and the Red Army, the cradle of numerous companies founded on the connections of the military with the state (Huawei for example). These factors necessarily distort the own market by far. In aspects mainly environmental, but also some social (expropriations, requalification, treatment of minorities), practices a laissez-faire influenced by the corruption of local officials, where the property rights of the weakest are not always respected. The emphasis and the rush to build tremendous infrastruturas, does not help in this sense since it is necessary to expropriate and displace. And to culminate this cocktail, the Party is concerned with promoting a marked nationalist and militaristic spirit that we do not find anywhere near in the Western countries.
However, in other things, it has large cities more modern than any in Europe, has powerful banks and investment banks, stock markets, and all the things that we can associate with a modern market economy. I believe that China has found its own way, farther from the experiments of the twentieth century in which it tried with disastrous results to adopt ideologies and purely Western approaches. It does not imply that the result has to be positive for everyone. Bearing in mind that right now China is on track to overtake the USA - saving very drastic global changes - we may have to redefine the simplistic binary and Manichean categories of almost empty terms like capitalism vs socialism, left and right.
It is a complicated subject that can be discussed for a long time.
It is a capitalism "to the Chinese". Just as their communism was also "Chinese". That Chinese capitalism implies censorship, uncontrolled control and almost a big watchful brother. But at the same time there is an unprecedented commercial and commercial flourishing against which it is almost impossible to compete. Money flows by tons and contracts also