Introduction
China’s economic reforms are unique in terms of mixing approaches of different political-economic systems. Despite this, the state remains a totalitarian regime with communist ideology. Understanding the mechanisms that underlie government decisions and socio-economic processes in China is extremely important for determining economic, political, social, and cultural international interaction. This paper aims to provide eloquent examples that prove that China remains a totalitarian state despite modern approaches.
Political Economic Systems
There are three most famous international political-economic systems, namely economic liberalism, mercantilism, and structuralism. Each method has its footholds and areas of interest, prioritizes different values, and addresses various political issues. The complex application of these systems is often found in many states, since individually, in its pure form, each method has its shortcomings and does not take into account some critical elements of the functioning of the state.
Economic liberalism, or neo-liberalism, was popular in the United States during the Reagan presidency. The system has two camps of Orthodox Economic Liberals (OELs) who advocate market freedom and Heterodox Interventionist Liberals (HILs) who support government regulation. HILs believe that the state should intervene in markets and that are integrated into society. OELs advocate for the application of the laissez-faire principle when the government is disengaged from economic problems. In their opinion, in the absence of government intervention, a system with purely market conditions emerges. In such a scenario, people strive to accumulate wealth and efficiently allocate and use resources. Interestingly, the OEL model is the heart of the modern global economy.
Mercantilism, or economic nationalism, gives more power to the state in protecting its financial priorities of accumulating wealth and power. For protection, hard power and soft power are used. Hard power is presented by military forces, economic leverages, and coercion used to defeat enemies and competitors. Soft power includes direct or covert propaganda of the values and ideals of the state. Propaganda can use any means of communicating with the audience, including art – films, music, theater performances, and public communications – television, radio, newspapers, magazines, Internet media, and social networks. Finally, structuralism sees the problems of political economies in light of social classes’ formation under the influence of the dominant economic structure. Structuralism supporters argue that the economy cannot exist in a social vacuum and is governed by political, economic, and social forces.
Communist Political-Economic System
Communism is a political and economic system with a declassed society opposing itself to liberal democracy and capitalism. The means of production in communist society are collectively owned; private property is absent or severely decreased. Karl Marx and Friedrich Engels developed the communist ideology as the opposite of capitalist ideology. The most famous examples of communist society are the former Soviet Union and China, which have radically modernized their economic system.
During the reign of Mao Zedong, China tightly controlled its citizens, implementing planned financial decisions, which often led to tragic consequences. In 1979, after the death of Mao and Deng Xiaoping came to power, a series of market reforms were carried out, which underpin modern China’s political-economic system. Today, the Communist Party is the primary source of power in China. Elections are prohibited, freedom of speech is limited, and state-owned enterprises constitute a significant part of the economy.
Massive Construction
One of the most striking characteristics that communist China and the former Soviet Union have in common is industrialization and massive construction. Following Deng Xiaoping’s market reforms, China launched a policy of urbanization and labor reform. The working week was reduced from six to five days, and workers were allowed to take a three-week vacation (Osnos 26). The Chinese government attempted to exchange the loyalty of its citizens for their financial and material well-being. By 2012, China had become more urban than rural for the first time, and household incomes continued to grow at an accelerated pace. Revising the economic system and incorporating elements of capitalism proved to be a highly successful solution.
The construction of cities was accompanied by building a network of roads and railways, as part of the Modern Silk Road concept, which has not yet reached the final phase. One of this network’s goals is to strengthen geo-economic ties with neighboring countries – including Russia, Kazakhstan, Iran, and South Korea. If completed, the Modern Silk Road will link China by land to the European Union and Turkey and form the backbone of the Silk Road Economic Belt. The opening of inland road connections helped the regions gain a foothold in their new roles, be it agricultural areas in the west or new cities in the central region populated by business clerks and technology workers. Therefore, China adopted a communist baseline to create a communist state with capitalistic features – Socialism with Chinese characteristics.
Propaganda and Surveillance
On the other hand, after introducing changes in the economic sector, the state doubled its control over cultural, political, and social life. Penalties for dissent have been strengthened, returning the country to the Mao tradition. The new surveillance system was introduced thanks to China’s high-tech development, making it possible to control any citizen’s step. It is noteworthy that such a situation is typical for totalitarian regimes that use communism and socialism ideology.
Along with the economic development, the Chinese Communist Party grew, which today has up to 80 million members and no significant political opposition. Party cells exist even in the most westernized technology companies (Osnos 34). The Chinese government is subordinate to the party; the election of the ruling members is prohibited. Moreover, the party appoints CEOs, Catholic priests, newspaper editors, and “advises” judges on high-profile or controversial cases; the army is also under the party’s control. Besides, party participation can guarantee more job opportunities and other privileges.
Noteworthy, the stimulation and control of the economy by the state and widespread propaganda are the hallmarks of the mercantilism perspective. Communist regimes traditionally use it in later stages of development. China practices hard power to influence and defeat enemies and competitors, including political opposition and citizens who disagree with the regime’s policies. The state also utilizes soft powers to convince the local population and disseminate desired cultural values and ideals. Therefore, the above examples illustrate that the Chinese state is still clinging to traditional communist practices like surveillance and propaganda and applies the mercantilism perspective.
Consumerism and Web-Control
The promotion of consumerism and the emergence of a consumer society that supports a vibrant market economy led to the new freedom of communication. Since capitalism ceased to be perceived as a threat to the regime, systems of thought control no longer apply to the pro-American culture of values (Osnos 38). Chinese communism proved to be a stable system able to integrate liberal ideas without a visible threat to the regime. This success may be because economic liberalism is no longer a symbol of a free society and cannot act as a platform for creating political opposition.
The state completely controls the Internet; it created a “Great Firewall” that prevents Chinese citizens from accessing websites that criticize the regime, including Facebook and Twitter. Depending on the current party policy, the wall can shrink and expand to ‘protect’ citizens from undesired informational trends or show openness. The famous case illustrates the surveillance system performance at the dawn of the Internet era in China (Osnos 40). In 2005, a Chinese journalist was prosecuted and imprisoned for ten years after he e-mailed to U.S. independent media a summary of the agenda discussed at his newspaper’s editorial meeting.
The Chinese government has collected evidence by asking Yahoo! CEO to provide personal data of the sender and the content of the letter. This scandal led to public condemnation and apology of Yahoo! CEO in front of the journalist’s mother. Then, in the mid-2000s, new laws were introduced to regulate the dissemination of information via the Internet (Osnos 42). In particular, the dissemination of “rumors” and messages that “damaged the credibility of the state” was prohibited. Later, other requirements were introduced in laws prohibiting spreading “information inciting illegal assemblies” and “information concerning activities of illegal civic associations.” The above examples show that, despite the appearance of freedom, China remains a totalitarian state that eradicates and prevents any dissent.
Conclusion
Thus, examples illustrate that China uses several political-economic systems to create a unique political, economic, and social environment. However, despite the application of financial techniques practiced in democratic countries, all power in China is concentrated in the party’s hands. Despite the relaxation of some economically ineffective policies, China remains essentially a totalitarian state that does not permit free international trade and political opposition.
Reference
Osnos, Evan. “Age of Ambition: Chasing Fortune.” Truth, and Faith in the New China 5 (2014).