Party-state capitalism ( zh, t=黨國資本主義) is a term used by some economists and sociologists to describe the contemporary

economy of China The People's Republic of China is a Developing country, developing Mixed economy, mixed socialist market economy, incorporating Industrial policy, industrial policies and strategic Five-year plans of China, five-year plans. —Xu, Chenggang. "T ...

under the

Chinese Communist Party The Communist Party of China (CPC), also translated into English as Chinese Communist Party (CCP), is the founding and One-party state, sole ruling party of the People's Republic of China (PRC). Founded in 1921, the CCP emerged victorious in the ...

(CCP). The term has also been used to describe the

economy of Taiwan Taiwan is a highly developed free-market economy. It is the 8th largest in Asia and 21st-largest in the world by purchasing power parity, allowing Taiwan to be included in the advanced economies group by the International Monetary Fund. Taiw ...

under the

military A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare. Militaries are typically authorized and maintained by a sovereign state, with their members identifiable by a d ...

government of the

Kuomintang The Kuomintang (KMT) is a major political party in the Republic of China (Taiwan). It was the one party state, sole ruling party of the country Republic of China (1912-1949), during its rule from 1927 to 1949 in Mainland China until Retreat ...

(KMT). The term is not used by the Kuomintang itself; it was coined by Taiwanese economists, such as Chen Shih-meng and Cyrus Chu, in their research report ''Deconstructing the KMT-State Capitalism'' (). According to academic Ho-fung Jung of

Johns Hopkins University The Johns Hopkins University (often abbreviated as Johns Hopkins, Hopkins, or JHU) is a private university, private research university in Baltimore, Maryland, United States. Founded in 1876 based on the European research institution model, J ...

, "China's state capitalism departs from

state capitalism State capitalism is an economic system in which the state undertakes business and commercial economic activity and where the means of production are nationalized as state-owned enterprises (including the processes of capital accumulation, ...

in other countries in that the power of the CCP in the economy goes far beyond SOEs. Some, therefore, conceptualize China's political economy as a unique 'party-state capitalism.'"

Characteristics

Margaret Pearson, Meg Rithmire, and Kellee S. Tsai have proposed to use the term "party-state capitalism" as a variant of

to conceptualize the political-economic dynamics of China since the late 2000s. They demonstrate this concept by examining three prominent manifestations of China's unique model: party-state encroachment on markets; a blending of functions and interests of state and private ownership; and politicized interactions with foreign capital. * Party-state encroachment on markets: A fundamental indicator of the expansion of the Chinese party-state system is the resurgence of CCP organizations within enterprises, including private enterprises and even foreign firms. A second prominent feature of Chinese party-state capitalism is the expansion of state capital beyond state-owned enterprises, a process that scholars have termed "state financialization". Another manifestation of party-state economic activity was the evolution of the scope of

industrial policy Industrial policy is proactive government-led encouragement and development of specific strategic industries for the growth of all or part of the economy, especially in absence of sufficient private sector investments and participation. Historica ...

. * Blending of functions and interests of state and private ownership: In China, the ambiguity surrounding the definition of private ownership has called into question the apparent distinction between state-owned enterprises and private enterprises. At the same time, private enterprises have emerged as key players in supporting the country's domestic security objectives. * Politicized interactions with foreign capital: Increased political oversight and scrutiny of foreign capital is a relatively new manifestation of party-state capitalism. Specifically, not only domestic economic actors, but also foreign companies operating in China and in territories over which China claims sovereignty, expect political correctness as defined by the CCP.

References

{{Authority control State capitalism Chinese Communist Party Kuomintang Economy of China Economy of Taiwan Economic systems Chiangism Taiwan under Republic of China rule

Characteristics

See also

References