They're very much like Russia in that they are a Socialist government that influences private enterprise.
It's a form of State Capitalism.
China basically became a market economy by the end of the 90s before it joined the World Trade Organization in 2001. In the new millennium, the Chinese economy has kept its growth momentum and become more integrated with the global economy. As an account of how China became capitalist, our book focuses mainly on the first two decades of reform. Within this time frame, our account is split into two parts by a dividing event, the 1989 Student Movement.
The first part of the story is a tale of two reforms. One was designed by Beijing; its goal was to revitalize the state sector and save socialism. The other resulted from grassroots initiatives. The state‐led reform came in two phases. The first one started at the end of 1976 under Hua Guofeng. Hua was Maos designated successor, who consolidated his power base after arresting the “Gang of Four” and ending the Cultural Revolution. Even though loyal to Mao, Hua was an economic modernizer.
With full support of Deng Xiaoping and other Chinese leaders, Hua launched his economic program of modernization, which would be later disparaged as “the Leap Outward.” Essentially, it was a stateled, investment‐driven program, with a focus on heavy industry; it is a good example of what economists called “big‐push industrialization.”
www.cato.org
It's a form of State Capitalism.
China basically became a market economy by the end of the 90s before it joined the World Trade Organization in 2001. In the new millennium, the Chinese economy has kept its growth momentum and become more integrated with the global economy. As an account of how China became capitalist, our book focuses mainly on the first two decades of reform. Within this time frame, our account is split into two parts by a dividing event, the 1989 Student Movement.
The first part of the story is a tale of two reforms. One was designed by Beijing; its goal was to revitalize the state sector and save socialism. The other resulted from grassroots initiatives. The state‐led reform came in two phases. The first one started at the end of 1976 under Hua Guofeng. Hua was Maos designated successor, who consolidated his power base after arresting the “Gang of Four” and ending the Cultural Revolution. Even though loyal to Mao, Hua was an economic modernizer.
With full support of Deng Xiaoping and other Chinese leaders, Hua launched his economic program of modernization, which would be later disparaged as “the Leap Outward.” Essentially, it was a stateled, investment‐driven program, with a focus on heavy industry; it is a good example of what economists called “big‐push industrialization.”
How China Became Capitalist
www.cato.org
