Capitalism

While China has tried to diversify its export destinations, as Taiwan did when it faced economic bottlenecks in the early periods of its development, its manufacturing sector with a large presence of foreign firms is still largely tied to the US market. Meanwhile, efforts to lift the domestic economy have been stymied by a lack of consumer spending and regulatory clampdowns. Academic Min-Hua Chiang examines the issue.

Healthy competition between systems to see what works best to improve the lives of the people would be a more productive framework of engagement between China and the US, which each have their flaws, says US academic Zhu Zhiqun. A little cultural humility in the process of self-exploration and self-critique will go a long way.

Chinese President Xi Jinping’s speech in February criticising the West was recently quoted in a Chinese Communist Party publication, and Lianhe Zaobao journalist Edwin Ong notes that the renewed attention could be intended to strengthen the political consensus among officials and citizens. Meanwhile, Xi’s emphasis on treading a different path from Western modernisation could come at the expense of its economy.

Today, China faces almost the same set of problems that the capitalist states are struggling with. In a post-capitalist world where an entire demographic degenerate into the “useless class”, capitalism will lose the market on which it depends. EAI senior research fellow Lance Gore imagines what this could mean for the Chinese Communist Party and other advocates of the socialist path.

Capitalist and socialist societies are faced with the same universal conflict between power and self-interest on the one hand, and fairness and justice on the other. As socialism seeks to reclaim the “better angels of our nature”, as mentioned by former US President Abraham Lincoln, the contemporary mass society that results may be a worthy alternative to a democratic system on the point of collapse. But can China achieve this goal?

China is far from possessing the ability, experience and resources to maintain and safeguard the global order. Thus, it is in its own interest to continue supporting the US as the global leader. Even so, amid a challenging international climate, China can no longer maintain a low profile. It needs to improve its global image and quell fears of the China threat. More importantly, the CCP should resist its internal urge to go all out on its fighting philosophy, which may likely win itself more enemies than friends.

A comment by New Oriental’s founder Michael Yu Minhong has sparked online debate on the ideals of private entrepreneurs in China. However, amid the commotion, Yu actually has sound advice for the business community in navigating through tough times.

Population decline can actually bring multiple dividends, contrary to popular belief, says East Asian Institute senior research fellow Lance Gore. Instead of looking for solutions to economic crises and population decline that are capitalist in nature and do not address the root causes, this is an opportunity to explore how socialism in China can deliver solutions that turn crisis into opportunity.

Lance Gore explains why navigating China’s “new era” requires out-of-the-box thinking on managing the knowledge economy, such as redefining employment and value beyond the capitalist labour market, and managing the uneven distribution of creativity and innovation. Moreover, the country needs to be wary of a reversion to large-scale centralisation of power and rule by the voice of one.