Revisiting China’s Market Economy Status: State Capitalism within the Liberal Trading System

Abstract

This paper examines the question of China’s compliance with market economy principles. China has reformed away from central planning in the past four decades, but has it achieved a fully-fledged market economy? The paper sheds new light on the contested nature of China’s market economy status from a political economy perspective. It draws on the Varieties of Capitalism analytical framework. The paper explains China’s status as a market economy as the product of a national model of state-dominated institutional complementarities between high levels of trade openness and domestic regulation, including nonmarket principles for the deployment of financial resources and labour.

Keywords

• china
• socialist market economy
• wto
• varieties of capitalism