this post was submitted on 21 Dec 2024
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China is demonstrably not capitalist, and people who keep repeating that it is are utterly clueless. If China was capitalist then it would be developing exactly the same way actual capitalist countries are developing. You will not see any of the following happening in a capitalist country ever
The real (inflation-adjusted) incomes of the poorest half of the Chinese population increased by more than four hundred percent from 1978 to 2015, while real incomes of the poorest half of the US population actually declined during the same time period. https://www.nber.org/system/files/working_papers/w23119/w23119.pdf
From 1978 to 2000, the number of people in China living on under $1/day fell by 300 million, reversing a global trend of rising poverty that had lasted half a century (i.e. if China were excluded, the world’s total poverty population would have risen) https://www.semanticscholar.org/paper/China%E2%80%99s-Economic-Growth-and-Poverty-Reduction-Angang-Linlin/c883fc7496aa1b920b05dc2546b880f54b9c77a4
From 2010 to 2019 (the most recent period for which uninterrupted data is available), the income of the poorest 20% in China increased even as a share of total income. https://data.worldbank.org/indicator/SI.DST.FRST.20?end=2019&%3Blocations=CN&%3Bstart=2008
By the end of 2020, extreme poverty, defined as living on under a threshold of around $2 per day, had been eliminated in China. According to the World Bank, the Chinese government had spent $700 billion on poverty alleviation since 2014. https://www.nytimes.com/2020/12/31/world/asia/china-poverty-xi-jinping.html
https://www.worldbank.org/en/news/press-release/2022/04/01/lifting-800-million-people-out-of-poverty-new-report-looks-at-lessons-from-china-s-experience
Capitalism is not defined by how the poor are treated, but by the economic relationships and mode of ownership.
Nordic countries have low poverty and generally good social support. Like it or not, this is achieved with private property on means of production, hence they are capitalist.
China has private property on means of production, hence it too is capitalist.
Both of them feature strong state oversight, which allows them to direct more of the capitalist profits to help the poor - which is good! But this doesn't make them "socialist".
Love how you respond to a bunch of information from the World Bank, NYT, and the National Bureau of Economic Research with a definition from Wikipedia.
Consider that you could learn more here.
Do any of the sources define socialism?
All of this could be true - none of this makes China socialist.
You said:
The response was a well-souced refutation of the idea that the Chinese economy is developing like a capitalist economy. You replied with Wikipedia. All I'm saying is that you're not looking at this in a whole lot of detail and you might have some things to learn.
For instance, you say Nordic countries have low rates of poverty and good social supports despite private ownership of the means of production. But in reality a lot of that is due to sovereign wealth funds, like Norway's Government Pension Fund Global, which is owned by the government and managed by a state-owned bank.
This is all true - state intervention and state-owned businesses and funds bring about a positive change for the majority, and they should be there, but seriously calling those economies socialist would be missing the definitional mark, which is what I have highlighted.
I do believe that moving entire economy under public control would be beneficial, and that, actually, will be what can be called "socialism". Virtually no country, except for heavily sanctioned and blatantly tyrannical North Korea, is currently there.
What we have right now, with heavy state intervention, is certainly better than "free" market economy though, and it reflects in quality of life for the economically disadvantaged - this very intervention leads to these economies following a different path compared to traditional capitalist societies. I do not argue there is no difference between China and, say, US in that regard - the difference is big, it's just not what it takes to call the economy socialist.
The point about Norway wasn't that it's socialist (it's not). The point was that Norway's low rate of poverty and generous social supports come directly from parts of the economy that are publicly owned.
The notion that a country's entire economy must be under public control otherwise it's not Real Socialism is too idealistic. China in 1949 was a late-feudal/pre-industrial country that had just been through a century of colonial invasions and civil wars. It needed to attract capital and expertise in pretty much every field, and it needed to build an effective, modern administrative state. How was it supposed to do all of that at once, wholly through the government? The Soviets ran into the same problem and the result was the New Economic Policy, which, like China today, involved markets and some private ownership, but ultimately subjected both to real state control. You need a transitory period to go from pre-revolutionary society to whatever your vision of Real Socialism is.
For me, China is socialist because the state is ran to the benefit of the working class (see massive poverty alleviation), that state really does control the capitalist class, and China seems to be doing more of both as time goes on.
China is not capitalist, its a mixed economy with the state-owned-and-planned sector dominating the heights of the economy.
Is China state capitalist?
Thoughtcrime. https://web.archive.org/web/20200727154945/https://www.reddit.com/r/communism/comments/c2b7ma/china_megathread_everything_a_leftist_must_know/
Thx, I'll update that.
Capitalism is defined by which class holds power in society, and in China it's demonstrably the working class. The reason the economy works in the interest of the poor is a direct result of that.
All the core economy in China is state owned, and the role of private sector continues to decline https://www.piie.com/research/piie-charts/2024/chinas-private-sector-has-lost-ground-state-sector-has-gained-share-among
You might want to learn a bit about the subject you're attempting to debate here.
What your data shows is that the share of state in the economy has partially recovered in 2020's from ~30 to ~50%, after falling from 80% to 30% in the previous decade. Impressive, indeed, and way ahead of most capitalist countries - but China is home to numerous giant private megacorporations, and allows many companies from abroad to build in the country.
"Who holds power" is very abstract and is not part of definition of socialism or capitalism. Even still, we just talked about homelessness - if workers held all the power, would there be homeless? Would there be any poor at all? Would there be overheated markets, including housing, which is one of the craziest in the world? Would there be Tencent, Alibaba, etc.? Would there be billionaires? Etc. etc. What defines "workers holding power" for you?
What is it about some leftists desperately trying to put socialist label on capitalist China - a desperate attempt to demonstrate a mighty socialist economy in the modern world? Socialist countries have lost the Cold War and are mostly not on the map anymore; there are objective reasons to that, including the fact most of the world never moved away from socialism and capitalist forces had greater capital to work with, and this does not mean socialism is bad, but currently, socialism is not represented by any large economy. That's just the fact.
Power isn’t abstract, and who holds it is definitional to socialism and capitalism, and to feudalism before them.
Not for the most part, no. In your imagined “capitalist” China, did you just assume that they have a homelessness crisis, without even checking? Because you’re unintentionally making our case for us.
You can’t go from one of the poorest, least developed countries in the world to universal wealth overnight. But they have made unprecedented progress.
I did not say of a severe crisis, I just highlighted both homelessness and inflated housing prices are a thing. And under the rule of the workers, neither should be true.
Homelessness isn’t really a thing, though. As to the recent housing bubble, the Chinese state intentionally popped it and left the capitalists out to dry.
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Compare that to Obama, who bailed out the private banks at the expense of people with home mortgages, banks that knowingly wrote those bad mortgages. Michael Hudson, 2023: Why the Bank Crisis isn’t Over
The Federal Reserve is just the cartel of the US private banks, whereas banking in China is predominantly state owned. The Chinese state both runs these banks and has fiat monetary sovereignty, so it’s not captured by the private finance capitalists like the US state is.
You have an infantile understanding of what capitalism is. I recommend reading this article to get a bit of a perspective https://redsails.org/china-has-billionaires/