Western criticisms of China often resurface old concerns as if they are new revelations. The latest wave suggests that state-owned enterprises in China are advancing while private enterprises are retreating. Yet, over 90 percent of China’s business entities are from the private sector, challenging this notion.
This perspective is rooted in several misconceptions, primarily the belief that the Western economic model—particularly that of the United States—is the only valid approach. This overlooks how European, UK, and U.S. economies have seen sustained increases in homelessness and struggled to deliver improved living standards or sustained economic growth.
China’s economic structure is intentionally different, prioritizing social outcomes delivered through economic activity. This approach is embodied in the policy of common prosperity, aiming to ensure that economic benefits are more evenly distributed across society.
While China is widely recognized for its success in eliminating poverty, it receives less acknowledgment for its ongoing efforts to reduce social inequality. In contrast, the U.S. economic model often results in a plutocracy where the wealthy influence economic and social policies.
Like any economy, China’s economy is in a constant state of flux, development, and rebalancing. The mix of private and state-owned enterprises varies with changing economic conditions. This dynamism is not a sign of stagnation but evidence of adaptive policy adjustments to meet new circumstances.
Western observers often make an artificial distinction between state-owned enterprises and state intervention in economic activity. During the 2008 global financial crisis, the United States effectively nationalized banks, bailing them out with taxpayer funds—a level of state intervention unprecedented in economies supposedly dominated by private enterprise. Similarly, during the COVID-19 pandemic, Western governments extensively intervened to support private enterprises.
The structure of Western economies fluctuates in response to broader economic environments, much like China’s does. As global economic conditions evolve, China adjusts the balance between state-owned and private enterprises to support common prosperity and reduce social inequality.
Since the 18th National Congress of the Communist Party of China (CPC) in 2012, China has been committed to comprehensively deepening reform by leveraging economic system reforms. This ongoing process aims to constantly improve the socialist market economic system, delivering economic progress according to criteria not typically applied to Western economies.
Reference(s):
cgtn.com
