State Market Capitalism and Problems of the Chinese Economy
Abstract
The presented study analyzes the results of the transformation in the People’s Republic of China, the implemented model of state market capitalism, and the problems that the Chinese economy is facing at the present stage. For many countries who have made the transition from planned towards market economy, China’s path would appear to be exemplary, which makes analyzing the Chinese economic model and its resilience to modern challenges a highly relevant task. The practical significance of this study is substantiated by the importance of China’s experience for the countries that have opted for the transition towards a market economy, including the former Soviet republics, Central and Eastern European countries, and some East Asian states.
Aim. The study aims to evaluate the efficiency of the state market capitalism model that has been implemented in the People’s Republic of China and its resilience to China’s current economic problems.
Tasks:
• to examine the theoretical approaches to the transformation of planned and administrative management systems into state market capitalism;
• to analyze the economic potential and major problems of the Chinese economy at the present stage;
• to assess the resilience of the state market capitalism model implemented in China to the country’s economic problems.
Methods. This study uses theoretical and comparative analysis, observation, synthesis, generalization, description, and graphical modeling.
Results. The analysis of the examined problems of the Chinese economy shows that the unique state market capitalism model, which implies direct cooperation between public authorities and enterprises and a coordinated development policy pursued by the country, enables the Chinese economy to overcome the challenges it is facing and continue to develop at a slower yet still sufficiently high rate.
Conclusions. The state market capitalism model combines the benefits of an open market with the effective protection of the key economic sectors and the ability to coordinate resources to solve economic problems. China’s successful experience of implementing a state market capitalism model deserves careful attention from emerging economies.
About the Author
Artem A. Yakovlev
Institute of Economics of the Russian Academy of Sciences
Russian Federation
Russian Federation
Nakhimovskiy Ave 32, Moscow, 117218
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Review
For citations:
Yakovlev A.A. State Market Capitalism and Problems of the Chinese Economy. Economics and Management. 2019;(5):34-40. (In Russ.)
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