SHOULD THE WEST BE AFRAID OF CHINA’S STATE CAPITALISM?

26 Jun SHOULD THE WEST BE AFRAID OF CHINA’S STATE CAPITALISM?

It’s a widespread notion that China’s state-owned companies are so powerful that they determine the country’s economic success and spearhead its global ambitions. While it’s true that state monopolies do exist in almost all key sectors (it’s a “socialist market economy” after all), and the government still keeps a tight grip on a lot of industries, the communist state may not be as omnipotent as you may think. If you take a closer look at the statistics of the Chinese economy, you’ll realize that the dominance of China’s state-owned sector is oftentimes overblown by the media; and the growth miracle China has managed to achieve in the past three decades very much depends on its thriving private sector, which now accounts for the vast majority of China’s industrial output.