How China manages capitalism for its own purposes
When Margaret Thatcher and Deng Xiaoping rose to leadership positions in 1978-79,British GDP was 2.5 times larger than Chinese GDP. By 2014, Chinese GDP was 3.5 times larger than British GDP. In the current issue of Governance, Roselyn Hsueh examines the institutional foundations of China’s capitalist transformation. Too often, says Hsueh, researchers have emphasized a “unidirectional transition toward a market economy.” However their are important differences between sectors. Strategically important sectors are shaped by “calibrated state interventions” including state ownership and restrictions on foreign investment. Hsueh says that China is pursuing a model of “bifurcated capitalism.” Read the article.