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  • December 8, 2022
  • Article
  • ForeignAffairs.com

The New China Shock: How Beijing’s Party-State Capitalism Is Changing the Global Economy

By: Margaret M. Pearson, Meg Rithmire and Kellee S. Tsai
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    Abstract

    In the wake of the global financial crisis of 2008, China began to move away from the market-based approach that had shaped its economic policies for three decades, and toward something that might be termed “party-state capitalism,” which involves a high degree of Chinese Communist Part (CCP) control over strategic sectors of the economy. This has led to significant changes in the U.S.-Chinese economic relationship, as both sides have made efforts to secure supply chains, screen inward and outward capital flows, diminish the power of global firms, and reorganize alliances to protect against economic coercion. The effects of this dynamic go well beyond the U.S.-Chinese relationship: the economic arms race between Washington and Beijing has changed the shape of global capitalism.

    Keywords

    International Relations; Globalized Economies and Regions; Economic Systems; Trade; China

    Citation

    Pearson, Margaret M., Meg Rithmire, and Kellee S. Tsai. "The New China Shock: How Beijing’s Party-State Capitalism Is Changing the Global Economy." ForeignAffairs.com (December 8, 2022).
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    About The Author

    Meg Rithmire

    Business, Government and the International Economy
    →More Publications

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