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2012/03/02

The Limits of State Capitalism - Caixin

-The debate rages...

"There are 2 schools of thought in China on state capitalism.

One group of scholars denies state capitalism is the reason for China's economic success. Instead, they argue, the driving forces were market dynamics unleashed by over 30 years of rural reform, private-sector growth, the national policy to open up and globalization. They say that to attribute success to state-led capitalism would be to misunderstand the past and mislead decision-making in the future.

The other school supports letting state capital shape the market, particularly in strategic industries. It sees state-owned enterprises as the cornerstone of China's spectacular growth. Analysts in this group do not use the term "state capitalism,' but they agree with the philosophy...."

The Limits of State Capitalism - Caixin Online:


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