@alyx China may be described as authoritarian capitalist.
But how they system is made up it's clear from what scholars says and economists says in consensus the system has a capitalist function.
" China's economic system is a complex and often debated topic. While the Chinese Communist Party (CCP) officially describes it as a "socialist market economy with Chinese characteristics," many scholars and economists consider it to have significant capitalist features.
Here's a breakdown of why it's a mixed picture:
Elements that resemble capitalism:
* Market forces: A large portion of the economy operates on market principles, with supply and demand influencing prices and production.
* Private enterprise: There's a thriving private sector that contributes significantly to GDP, employment, and innovation. Many large and successful Chinese companies are privately owned.
* Foreign investment: China has a high degree of openness to foreign businesses and actively encourages foreign direct investment.
* Stock markets and financial markets: These exist and allow for private share ownership, which is a key characteristic of capitalist economies.
* Profit motive: Both state-owned and private enterprises operate with a strong emphasis on profitability.
* Integration into the global economy: China is a major player in international trade, a member of the WTO, and its firms compete globally.
Elements that retain socialist/state control:
* Dominant role of the state: The government, through the CCP, maintains significant control and influence over the economy. It sets overall economic direction, implements industrial policies, and guides development through five-year plans.
* State-owned enterprises (SOEs): While their proportion of overall industrial capacity has declined, SOEs still dominate strategic sectors like banking, energy, and telecommunications. Many large and successful Chinese companies are still state-owned or have close ties to the government.
* Land ownership: All land in China is technically owned by the state or collectives.
* State direction: The state can direct and guide major aspects of the economy, including both state and private sectors.
* Financial repression: The government has historically kept interest rates low, effectively providing cheap capital for state-favored industries and projects.
Different interpretations:
Due to this mix, different terms are used to describe China's system:
* Socialist market economy: The official term used by the CCP.
* State capitalism: Many scholars argue that the extensive state control and ownership, even within a market framework, make it a form of state capitalism.
* Authoritarian capitalism: This term highlights the combination of capitalist economic practices with an authoritarian political system.
In essence, China has adopted many features of a market economy and capitalism to drive its remarkable economic growth and lift a large portion of its population out of poverty. However, it has done so while maintaining the political control of the Communist Party and a significant degree of state involvement and ownership, distinguishing it from traditional Western capitalist systems."