Madison Sinclair │03.09.17
The economic system that China has is a state capitalist economic system. According to cia.gov, China has become the world’s largest exporters and has moved from a closed system to more of a system that is focused on markets. Because China has a state capitalist economic system, their primary goal is to make money. Another goal associated with the state capitalist economic systems is to protect property as well as defend the security of employees through the regulation of business. The Chinese government does support large scale businesses, and they are also a system in which commercial activity is taken on by the state and government controlled business. Unlike a mixed economic system that allows the factors of production to be owned by private enterprises, the Chinese state capitalist economic system has their factors of production controlled by the state through state-owned businesses or the state may control all access to loans through state-controlled banks. The state capitalist system is a better system compared to a mixed economic system because a state capitalist economic system controls the factors of production which ensures that private businesses won’t eventually have the majority of control over land, labor, and capital. Over the years, the Chinese government has dominated their economy, and according to countrystudies.us, the Chinese government is responsible for planning and managing the nation’s economy. According to pewresearch.org, 89% of Chinese think that the state capitalist economic system is going very well, but it still contains political and economic consequences. With this particular economic system, many Chinese people complain about inequality, inflation, and the rich-poor gap. The Chinese people are also hopeless because of the amount of corruption they see within their officials. The system is politically corrupt, and according to pewresearch.org, fifty-three percent of Chinese people said that corrupt officials were a significant problem in their economy in 2016. The Chinese economic system is becoming more and more corrupt over the years. Thirty-eight percent of Chinese people say that giving bribes is essential to getting ahead in life. Compared to the global median of sixteen percent, the Chinese percentage is much higher.
“China – Role of the Government and the Party in the Economy.” China- Roles of the Government and the Party in the economy.” U.S. Library of Congress. Web. 09 Mar. 2017.
“The World Factbook: CHINA.” Central Intelligence Agency. Central Intelligence Agency, 12 Jan. 2017. Web. 09 Mar. 2017.
Simmons, Katie. “China’s Government May be Communist, but Its People Embrace Capitalism.” Pew Research Center. 10 Oct. 2014. Web. 09 Mar. 2017.