Anonymous
Anonymous asked in Social ScienceEconomics · 2 months ago

Is China a good example of how a free market economy with minimal state intervention in the economy promotes rapid economic growth?

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  • 2 months ago

    I am genuinely impressed that someone actually described China's system accurately here, referring to Christian's answer. Roughly half the entire workforce works for the government in China, and another half of all rural families work in farming cooperatives. The private sector is incredibly controlled.

    "It appears that the CPC’s integration policy towards private enterprises has effectively utilized both ‘top-down’ organizational infiltration and ‘bottom-up’ political integration. In doing so, the CPC maintains its control over private enterprises. Not only does it consolidate the governing legitimacy of the Party, it also enables private businesses to fulfil its social function. The policy helps the Party successfully prevent the formation of non-institutionalized powers outside the system."

    --- "The Chinese Communist Party’s integration policy towards private business and its effectiveness: An analysis of the Ninth National Survey of Chinese Private Enterprises", Chinese Journal of Sociology

    I have seen this claim that China is a "free market economy" from westerners all the time. I genuinely have no idea how anyone can believe this. It is one of the most controlled markets in the world, it is a Marxist-Leninist state and a socialist market economy. Viewing it even as capitalism would require an incredibly loose definition of the word "capitalism." 

  • 2 months ago

    The Chinese government owns a lot of business in a half half stake

  • 2 months ago

    IF YOU BELIEVE THAT THERE IS MINIMAL STATE INTERVENTION IN CHINA, YOU MUST BE SMOKING SOME REALLY GOOD STUFF.  CHINA HAS WHAT YOU COULD CALL GOVERNMENT CONTROLLED CAPITALISM.  THE CCP PLAYS A BIG ROLE IN WHO ARE THE WINNERS AND LOSERS

  • 2 months ago

    China is a mix of private and state capitalism. It has neither a free market nor minimal state intervention.

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  • Zirp
    Lv 7
    2 months ago

    "minimal state intervention" ??

    you are kidding, right?

  • ?
    Lv 6
    2 months ago

    No, a market economy with heavy state intervention, Milton Friedman. Japan was a model of fast growth. China has just copied the path of export oriented policy.

  • Anonymous
    2 months ago

    China has a socialist market economy. The system is based on the predominance of public ownership and state-owned enterprises within a market economy. It definitely is not a free market.

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