# How does the economy really work in China these days. Is it quasi-capitalism or not?

**URL:** <https://boards.straightdope.com/t/how-does-the-economy-really-work-in-china-these-days-is-it-quasi-capitalism-or-not/254803>\
**Category:** Factual Questions\
**Created:** [July 12, 2004, 11:19pm UTC](https://boards.straightdope.com/t/how-does-the-economy-really-work-in-china-these-days-is-it-quasi-capitalism-or-not/254803 "2004-07-12T23:19:27Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![astro](https://avatars.discourse-cdn.com/v4/letter/a/9dc877/32.png) [@astro](https://boards.straightdope.com/u/astro)\
**Post date:** [July 12, 2004, 11:19pm UTC](https://boards.straightdope.com/t/how-does-the-economy-really-work-in-china-these-days-is-it-quasi-capitalism-or-not/254803/1 "2004-07-12T23:19:27Z")

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Just curious. I know the Chinese economy has undergone some major changes, but I’m not sure what form these have taken in terms of actually getting business done and buying things.

I found this about [China’s political system](http://www.china.org.cn/english/Political/25060.htm) but it doesn’t say much bout how the economy is really arranged in real world terms. Is it still kinda-sorta Marxist at root, or is it something else altogether at this point?

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**Author:** ![js\_africanus](https://avatars.discourse-cdn.com/v4/letter/j/87869e/32.png) [@js\_africanus](https://boards.straightdope.com/u/js_africanus)\
**Post date:** [July 13, 2004, 1:27pm UTC](https://boards.straightdope.com/t/how-does-the-economy-really-work-in-china-these-days-is-it-quasi-capitalism-or-not/254803/2 "2004-07-13T13:27:20Z")

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According to _The Economist_, China is basically capitalist in goods and labor, but capital markets are still pretty heavily regulated. A search hasn’t yeilded the article I was looking for; however, the June 6, 2004 _Economist_, Newbridge Capital has took over the Shenzhen Development Bank. Though ownership is limited to 20% by law (they bought 18%), “the deal, sealed on May 31st, permits the Americans to appoint a majority of the 15-strong board. They will thus be able to run SDB, the main bank in the city.”

So there you go. Additionally, I had a personal email exchange with a business reporter stationed in Beijing (sp?) who told me that China is indeed essentially capitalist at this point. Worth noting, _The Economist_ has reported that business folk are now allowed to join the Party, and China is thinking of amending it’s constitution to make private property rights “inviolable.”

YMMV.

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**Author:** ![js\_africanus](https://avatars.discourse-cdn.com/v4/letter/j/87869e/32.png) [@js\_africanus](https://boards.straightdope.com/u/js_africanus)\
**Post date:** [July 13, 2004, 1:29pm UTC](https://boards.straightdope.com/t/how-does-the-economy-really-work-in-china-these-days-is-it-quasi-capitalism-or-not/254803/3 "2004-07-13T13:29:10Z")

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Boy, did I botch a sentence in that post.

FTR, no links because the articles are subscriber only now. If you want, I can email them to you through the magazine’s website.

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**Author:** ![astro](https://avatars.discourse-cdn.com/v4/letter/a/9dc877/32.png) [@astro](https://boards.straightdope.com/u/astro)\
**Post date:** [July 14, 2004, 1:25am UTC](https://boards.straightdope.com/t/how-does-the-economy-really-work-in-china-these-days-is-it-quasi-capitalism-or-not/254803/4 "2004-07-14T01:25:58Z")

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Thanks!