Publications
Publications
- 2024
- Chinese Politics: The Xi Jinping Difference
The Private Economy Under Party-State Capitalism
By: Margaret M. Pearson, Meg Rithmire and Kellee S. Tsai
Abstract
This chapter addresses the evolution of China’s approach to the private sector from the early reform era until the beginning of Xi Jinping’s third term. It argues that China has evolved from a familiar form of state capitalism, in which economic growth is the primary goal, into a more politicized variant that we call “party-state capitalism.” The main manifestations of party-state capitalism are the elevation of economic affairs into the realm of national security; the rise of mixed-ownership enterprises; and enhanced party-state influence in firms through purchases of equity stakes. In combination, these practices have affected large and strategically positioned private firms by blurring the boundaries between these firms and the state, placing them on the defensive against a more predatory party-state, and triggered backlash from Western countries against Chinese firms operating abroad. For micro, small, and medium private sector firms, both China’s shifting model and its management of the pandemic have presented challenges and opportunities for their growth.
Keywords
Government Administration; International Relations; Economic Growth; Economic Sectors; Economic Systems; China
Citation
Pearson, Margaret M., Meg Rithmire, and Kellee S. Tsai. "The Private Economy Under Party-State Capitalism." Chap. 3 in Chinese Politics: The Xi Jinping Difference. 2nd edition edited by Stanley Rosen and Daniel C. Lynch, 67–82. Routledge, 2024.