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China Does Capitalism Better than the US
File size:
9 KB
ID number:

365832

Author:
Evaluation:
Published: 30.10.2012.
Language: English
Level: Secondary school
Literature: 4 units
References: Not used
Extract

The system in China is not only capitalist- it is state capitalism.
Volatility in outcomes in China is much higher in the coming decades than in America, partly because of the huge changes China has still to make.
“SOEs—enterprises with the state as their biggest shareholder—only make up less than 5 percent of total enterprises in China, they control almost 1/3 of total enterprise assets due to their big sizes—on average, SOEs are about 14 times larger than their non-SOE peers.”(World bank)
Since 2008 China has been moving more towards SOE’s rather than the private sector.
Due to this little regulation there is no transparency in the system, therefore making it less effective. This lack of regulation also means that the state can pretty much do as they please, because as they are not regulating the business, they are not regulating government action as well.
States use markets for their political gain.

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