China, between Communism and capitalism
In July 2008, the Beijing Olympics provided China, with the opportunity to showcase its prowess on the world stage. There were two main objectives: to show its supremacy via its athletic achievement with an impressive number of medals, as well as its economic power and organization.
China has worked on its diplomatic relations with many countries, especially, America and Europe, and this has given a chance to establish themselves internationally. It thus became, in 2010, the third largest global power overtaking Germany. China has shown its ability to organize an event (Olympics) in par with any other country both traditional and modern, and actions which confirm their communist ways of managing things. Can one ask if China is a communist state with capitalist tendency?
At a deep questioning of global capitalism, some countries like Russia and China stand out for tendencies towards communism. While the origins of communism in these countries took place several years ago, now one can distinguish a polarization between these two great economic systems. Enter then Marx's theory with the realities of Chinese Communism.
Originally Marxist, communism is a concept of class less society and social organization without a state. Being based on common ownership of means of production, the principle of wealth distribution would then be "To each according to his needs, from each according to his means." Clearly in communism, the state would no longer exist, the community would have established regulatory mechanisms and self-discipline and all that without resorting to a state entity. Moreover, the word "Communism" (especially with the case) is often used to describe political and economic systems governed by parties claiming communism.
In China, communism is like today in the person of Hu Jintao and the Chinese Communist Party. Indeed both the general secretary of the Chinese Communist Party and President of the Republic of China, HuJintao is the holder of power. In 2003 he became head of the country,and was re-elected March 15, 2008. Then a cult of personality was set up around it.
In the case of a capitalist system, the means of production (land and machinery) are owned by private individuals and companies. People are also free to manage their property as they wish, sell them and thus remove the profit motive. The state still retains an important role especially in developed countries. In some cases, it can either hold a portion of large companies or entire sectors. The economy can also be planned and regulated by the state.
In 90 years, China has developed a program of large-scale privatization and by reducing the supremacy of the public sector. Example of employees working in the public sector illustrates this privatization. Indeed, in 1978, they accounted for 79% of Chinese workers, while in 2000, there were only 12%.
The solution to the country's economic stagnation, economic openness, is closely linked to a range of markets, has helped China to win on the international market gradually.
This autonomy of markets is very applicable to the financial field in China. In the past, there was no real central bank, as the latter, called People's Bank of China. It had two roles: the Central Bank and the financial institutions (credit transactions, taking deposits). As for other banks in the country, they were all nationalized and specialized according to an industry.
Tags: China; communism; capitalism