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

economy of China The China, People's Republic of China has an upper middle income Developing country, developing Mixed economy, mixed socialist market economy that incorporates economic planning through Industrial policy, industrial policies and strategic Five- ...

under the

Chinese Communist Party The Chinese Communist Party (CCP), officially the Communist Party of China (CPC), is the founding and One-party state, sole ruling party of the China, People's Republic of China (PRC). Under the leadership of Mao Zedong, the CCP emerged victoriou ...

(CCP). The term has also been used to describe the economy of Taiwan under the

authoritarian Authoritarianism is a political system characterized by the rejection of political plurality, the use of strong central power to preserve the political ''status quo'', and reductions in the rule of law, separation of powers, and democratic votin ...

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

government of the

Kuomintang The Kuomintang (KMT), also referred to as the Guomindang (GMD), the Nationalist Party of China (NPC) or the Chinese Nationalist Party (CNP), is a major political party in the Republic of China, initially on the Chinese mainland and in Tai ...

(KMT). The term is not used by the Kuomintang itself; it was coined by Taiwanese economists such as

Chen Shih-meng Chen Shih-meng (; born 4 August 1948) is a Taiwanese economics scholar and politician. Chen supported the independence of Taiwan. Biography Chen was born in Maryland, United States, on August 4, 1948, to , a Taiwanese agronomist. His grandfather ...

and

Cyrus Chu C. Y. Cyrus Chu (; born 29 October 1955) is a Taiwanese economist and politician. He holds a Bachelor of Law (Department of Business) from National Taiwan University (1978) and PhD in economics from the University of Michigan (1985). He joined t ...

, in their research report ''Deconstructing the KMT-State Capitalism'' (). Margaret Pearson, Meg Rithmire, and Kellee S. Tsai proposed to use the term “party-state capitalism” 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 party 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 far beyond state-controlled 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. * 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 Party.

References

{{Authority control Economy_of_China Economic systems Taiwan under Republic of China rule

See also

References