Tuesday, December 10, 2019

Chinese Capitalism

China's gini coefficient, a measure of inequality, at .50 or above, inequality matches that of the Philippines.

China’s economy is a capitalist economy, though one that is uniquely Chinese. It might be called “capitalism with Chinese characteristics,” to give a more accurate spin to Deng Xiaoping’s puzzling description of his project as “socialism with Chinese characteristics.

China’s contemporary political economy has four key features:

1) It is largely liberalized or market driven.
2) It is largely privatized but with state intervention in areas considered strategic.
3) Its cutting edge is export-oriented production sustained by “financial repression.”
4) And it is decentralized, with a great deal of autonomy for local decision-making while central authorities focus on broad national-level macroeconomic strategies and policies.
Full article here

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