In this post, I will clearly define China’s state capitalism as communism + capitalism. This will help my fellow Americans best understand China, as well as the world.
1. What is state capitalism?
Below is an excerpt from Wikipedia – State capitalism.
State capitalism is an economic system in which the state undertakes business and commercial (i.e. for-profit) economic activity and where the means of production are nationalized as state-owned enterprises (including the processes of capital accumulation, centralized management and wage labor). The definition can also include the state dominance of corporatized government agencies (agencies organized along business-management practices) or of public companies such as publicly listed corporations in which the state has controlling shares.[1]
2. What is China’s system, anyway?
China calls itself “a socialist country with Chinese characteristics”, which is intellectually very sound.
In contrast, the West characterizes China in many ways, from “communist China” by some China-haters to “state capitalism” by some fair-minded intellectuals.
I will simply use “state capitalism” as the best Western description of China and clearly refine it more robustly, and practically.
3. What is China’s state capitalism?
Simply put, it is a marriage of socialism (aka “communism” in America) and capitalism.
In other words, the political system is still communistic (especially by Western standards), but the economic system is largely capitalistic.
What a strange marriage!
It is both a curse and a blessing for China.
- It is a curse, because of its communist past (1949-1976), just like the USSR. Then everything belonged to the state (with the rich being “incapacitated” and their wealth confiscated).
- It is a blessing, because China, after Mao’s death in 1976, pursued economic reforms. It embraced capitalism, without replacing its political system with democracy as the USSR did.
4. Capitalism vs. state capitalism
Capitalism is the best thing ever happened to mankind, although it was initially enabled by colonialism (1492-present), mostly. Two examples:
- Capitalism has enabled us to feed more and more people on earth.
- It was capitalism that propelled the West ahead of China about 200 years ago.
State capitalism is the best thing that ever happened to China. It is state capitalism that has propelled China back as a world leader.
5. China and Marxism
Here is a 2018 news story: China Celebrates Karl Marx 200th Birthday Anniversary with Fanfare.
Why is China putting so much emphasis on Karl Marx these days?
Aside from the need to justify her marriage of capitalism and socialism, China has extended Marxism as follows:
- Karl Marx advocated the need of a proletarian revolution to overthrow capitalism (or a capitalistic government). China did that (Chinese Communist Revolution).
- China has, over the past four decades, peacefully evolved itself into “state capitalism”, which is an extension of Marxism.
For more, read What if Karl Marx was correct, mostly?
6. Discussion
To profoundly understand China and its state capitalism, Americans must truly understand both America and China. Let me highlight each …
6.1 What is America, anyway?
America is a lie – Everything you think you know about America is wrong, from “human rights” (American “human rights” is a lie) to “free market” (American “free market” is a lie).
The country was founded by/of/for the rich, and remains so today!
America is falling apart, thanks to the endless foreign wars (Pope Francis Says NATO Started War in Ukraine by “Barking at Putin’s Door”), gun violence (It’s guns, stupid!), and the overturn of Roe v. Wade – See image below.
Here is what America truly is: It is the last big colonial power standing! For more, read Is America the last big colonial power standing?
6.2 What is China, anyway?
China is arguably the greatest country in human history. Two facts:
- China has the longest continuous civilization in human history.
- Throughout human history, great civilizations have come and gone. There is one major exception: China – come, almost gone, and come again!
Specifically, China has lifted some 800 million people out of poverty over the past four decades, without dropping a single bomb. This is totally unprecedented in human history, especially in terms of scale, speed, and peaceful development!
In other words, China has offered the world a real, and significant, model of prosperity, without colonialism!
Are you still wondering why the West (aka “[former] colonial powers”) hates China?
7. Summary
China’s state capitalism is communism + capitalism, in this order!
It is the best form of government for now. For more, read History 2.0 – China’s Comeback vs. America’s Decline.
8. Closing
Once again, China’s state capitalism is communism + capitalism, in this order!
Now, please sit back and enjoy the video below.
China is respectfully a Great Country, but it hasn’t accomplished all by it’s own teachings. The Five thousand years of China by John Ross member of Chongyang Institute for Financial Studies (Think Tank in China) gives many factual details in history of China normally not revealed in writings. One being their not the oldest society on earth. That title goes to Iraq some 2000 years older than China & some areas of Europe. We also noted to be a five thousand year society, only to become a leader in the World in the late 1900’s is quite slow. China’s raise to become a economic key World power, needs to be reminded , it was by Jimmy Carters authority to allow Chinese students to enter United States Colleges for higher learning, that encouraged many to become China’s College professors of higher learning. I doubt many US Presidents would have given China that opportunity. But remember Jimmy Carter was rated… as our worst President, until Joe Biden was elected to Presidency.
Human life started in Africa millions of years ago, and propagated from there. The 1st civilization is Egypt (Yes, in Africa). Then Asia (e.g., Iraq) and Europe (e.g., Greece), and finally to East Asia (and North America (via Alaska).
No knowledge person thinks China was the 1st! China boasts to have 5K years of history, which is approximately right. If you argue 4K, fine!
Here is a key though: Greek and China thrived in philosophy at about the same time: 500BC.