Skip to main content

Once Again, China Proves Neoliberals Wrong

A few days ago everyone talked about China's stock market collapse. "Xi Jinping has run into the one thing in China he can't control", wrote news website Quartz, implying that the all-powerful Communist Party finally had to acknowledge that it couldn't rein in the "free market". No sooner had the Chinese government stepped in to save the stock market than Western media dismissed Beijing's policies, predicting they would not work. "China markets plunge as government measures fail", wrote Yahoo News. These are only two examples of what the South China Morning Post called "Western media's callous delight at China's stock market crash". According to The Telegraph, China's stock market crash would cause a "more worrying financial crisis" than the one happening in Greece.

But, as has often been the case over the past four decades, the West's neoliberal-minded analysts have failed to understand the strength of China's economic system. Due to their own bias, they are constantly intent on proving why the "free market" is always more efficient than the regulated market. "[T]he Communist Party," preaches The Economist, "powerful though it may be, cannot indefinitely bend markets to its will. Chinese leaders should heed that lesson and get on with the challenges of liberalising their economy. A relapse towards statism will not just set China back. It also will not work."

Despite many neoliberals' desire to see China collapse so that their theories may be proved right, Beijing's measures have had the desired effect: they averted an economic crisis on a larger scale. Western media's criticism of the government's intervention was premature.

Analysts have been announcing the collapse of China for years now. Rather than being based on cold facts, such prophesies are entirely ideological. Those who dislike the Chinese Communist Party or believe in the superiority of neoliberal capitalism and Western democracy simply refuse to acknowledge that a one-party state with a regulated market economy can be so successful. This success upsets and confuses their entire 'Weltanschauung'. But instead of rethinking their economic models, they switch to the systematic denial of alternative development strategies. Similarly, the experiences of Japan, South Korea, Taiwan, Singapore and of the Western world itself prior to the 1970s, have been ignored or censored.    


Shanghai Stock Exchange (source:"Shanghaistockexchange" by Heurik via Wikimedia Commons)
Of course, this doesn't mean one should ignore the weaknesses and problems of  the Chinese economy. No system is perfect, and whoever promises to build a 'new Jerusalem' is doomed to fail. But it is bizarre how neoliberal-minded analysts are so keen on emphasizing everything that is wrong with regulated, state-led economies, while playing down the flaws of neoliberal economics, as if neoliberal policies had not caused stagnating or falling median incomes, deindustrialisation, growing inequality, underemployment, low growth and disastrous economic crises. 



Comments

Popular posts from this blog

Will The Huawei Case Finally Awaken Democrats To The China Threat And The Danger Of Faux Free Trade Rhetoric?

On January 28 the Department of Justice of the United States unsealed two cases against Huawei, China's largest telecommunications company, and its chief financial officer, Meng Wanzhou. 
Huawei has been accused of trying to steal trade secrets, committing bank fraud, breaking confidentiality agreements and violating sanctions against Iran. One indictment claims that Huawei attempted to steal trade secrets from T-Mobile by promising bonuses to employees who collected confidential information.
Huawei is not a company like any other. Over the years it has benefited enormously from the support of the Chinese Communist regime. The founder of Huawei, Ren Zhengfei, joined China's army during the Cultural Revolution. In 1978 he also joined the Chinese Communist Party (CCP). 
In the early years Huawei's sources of capital were high-interest loans (20%-30%) from Chinese state-owned enterprises. Ren also secured soft loans from the local government of Shenzhen thanks to his personal co…

Taipei Walking Tours - A Guide To Taipei In 6 Days

Taiwan is one of the most underrated tourist destinations in Asia. With about 10.74 million tourists in 2017, it lags behind Asian neighbours like Thailand (35 million), Hong Kong (58 million), Japan (28.7 million), or Indonesia (14 million).
Nevertheless, Taiwan is a great place to visit due to its amazing food, fascinating history, traditional Chinese culture, friendly atmosphere, safety, and natural attractions. Moreover, Taiwan has a very convenient visa policy. Citizens of many countries, including the United States and most European Union members, can travel to Taiwan without a visa and stay there for up to 90 days. You can literally buy a plane ticket and go to Taiwan without doing any paperwork.    
If you travel to Taiwan, your first destination will probably be the capital and largest city: Taipei.




Taipei is the political and economic centre of the island, with lots of attractions ranging from modern skyscrapers and shopping centres to night markets, colonial Japanese architect…

Chinese Dissident Zhang Jilin Detained By Police In Chongqing After Calling On Xi Jinping To Resign

Chinese dissident Zhang Jilin (张吉林) has been detained by police in the city of Chongqing after publicly saying that President Xi Jinping should be removed from office.
According to Taiwan-based Apple Daily, on January 17 Zhang talked about China's current affairs on a WeChat group. His ideas received praise from the group members, and he later told friends that he wanted to give a public speech based on the thoughts he had expressed online.
Other dissidents urged him to be careful, but he insisted that he had "the right to free speech." On January 19 Zhang went to Guanyinqiao Square, in the city of Chongqing, and delivered a speech about China's political situation, calling on Xi Jinping to be removed from office.
"I think it's time for Xi Jinping to be removed from office," Zhang told a crowd according to an audio recording. "The Chinese Communist Party will not do anything to the people. If you don't believe me, look, I have been giving a speech…