Biggest Lie of Them All – China is a Free Market Capitalist Country

On a historical level socialism is failed massively, if you look at all the innovative companies (MIT Tech Review does a yearly list) almost all the companies are Chinese, or American

Ok your crazy argument is that the continent of Europe is a gigantic failed economy due to too much socialism. Have you ever been to Europe? How many Europeans would agree with you?

The problem with this argument is that China is massively more socialist than Europe.

Do you realize that 45% of the Chinese economy is state-owned? Do you realize that all Chinese firms are officially owned by their workers? Do you realize that the workers get a check every month for the gross income of the firm, which is then heavily subtracted from to continue running the enterprise? Do you realize that many Chinese firms are owned by municipalities which compete with firms from other cities? Do you realize that homelessness is illegal in China? Do you realize that education is free through the university level in China? Do you realize that the state spends an incredible amount of money and investment in infrastructure? Do you realize that the Chinese state is now spending vast sums of money to improve the rural areas?

Do you realize that those lists of the biggest and best Chinese companies always include many state firms? Do you realize that all land in China is owned by the Chinese government? Do you realize that China has a planned market socialist economy, with heavy emphasis on economic planning and state guidance of the economy similar to South Korea and Japan, two other misnamed free market capitalist countries.

Japan’s economy is not neoliberal at all. The commanding heights of the economy is owned by the state. The economy is heavily planned. The state itself is all wrapped up in my of those firms as is the case in South Korea. I am not sure what the Japanese economy resembles but one can make a good case that the Japanese economy is similar to the German  economy under Nazism. The Nazis were terrible people,  but they were pretty good at economics.

I’m looking for the laissez faire free market capitalism in any of this? I don’t see it.


Filed under Asia, Capitalism, China, Economics, Education, Europe, Government, Japan, Labor, Nazism, NE Asia, Political Science, Regional, Socialism, South Korea

8 responses to “Biggest Lie of Them All – China is a Free Market Capitalist Country

  1. Jason Y

    A lot of these state firms are still abusive. For instance, Wal-Mart is in cahoots with the Chinese government operating places which are basically slave camps with horrible working conditions and pay.

  2. Proud squaw

    Whatever they follow now, they are much better behaved than they were. I think mao was largely behind it. Any successful story has a tragic past. Mao’s policy might have failed that time but it was the stepping stone for China’s rise to its current position now. Btw Robert, is there any truth in the below article in wapo. I don’t like wapo 1bit

  3. Proud squaw

    But they have their share of sweat shops, that one cannot deny. As someone mentioned Walmart, apple are certain examples. I bet there are lots more.

  4. hbd investor

    How is China not a capitalist country?

    They practice State Capitalism, it is called State Capitalism (and not State Socialism) for a reason. Companies owned by the chinese government are still expected to turn a profit or break even.

    The chinese government acts as basically the largest shareholder but the companies still have to follow the rules of capitalism.

    These companies are controlled by the chinese government mainly because these companies are natural monopolies and ripe for abuse.

    They move wealth into more productive industries, the majority of the SOE’s owned by the chinese government are banks, telecommunications, utilities, oil companies etc…. industries where the US government already gives monopolies to

    And no nationalizing companies is not socialism, most people would agree that socialism is spending on social goods like welfare, healthcare, education etc

    Do you realize that all Chinese firms are officially owned by their workers

    No they are owned by shareholders

    Do you realize that education is free through the university level in China?

    Completely wrong, Chinese students pay tuition, they can get grants if they come from poor families just like in the US

    Do you realize that the state spends an incredible amount of money and investment in infrastructure

    Look, Most people when they talk about socialism, what they mean is handouts and free stuff for the poor not infrastructure, state owned companies, not grants for poor students, not building roads etc….

    This is the main thing that HBD’ers and most of the Right are against, giving free stuff to the poor. The reason for this is obvious you reduce incentive to work hard, and you destroy the birth rates of the best and brightest while the poor reproduce like rabbits. So no free healthcare, no welfare checks, no free university education, no free housing

    • Sam J.

      Roberts right. They are actually not Communist or Capitalist. It’s a new form of production. The Japanese this form of production copied the assembly line and quality control from the US and the political and baking system from the Germans. Each Asian country has taken various parts of these same values and incorporated it into their manufacturing, banking and government. The Chinese have really turbocharged it.

      The US can never compete with this as long as they refuse to allow us equal access to their markets. We could compete if this was allowed but it would still mean vastly lower living standards for the average US citizen.

      • Sam J.

        I forgot a link. If you want to learn exactly how the Japanese economy works read,”
        Blindside: Why Japan Is Still on Track to Overtake the U.S. By the Year 2000 ” by Eamonn Fingleton. Now the Japanese didn’t take over the US economy but a lot of that is because the Chinese took a big chunk of it. There’s also a hidden function in the Chinese economy that’s mostly Japanese. Parts and machine tools used to export to the US. Shows up as Chinese but the parts are really made in Japan.

  5. Japan’s bubble burst in the 1990’s.

    This had nothing to do with the U.S.

    It is like admiring Clinton for being president between the Cold War and 9-11. He was fortunate and we associate him with a prosperous decade, but he himself had nothing to do with it.

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