China's economic landscape is often misunderstood by Western critics who frequently assert that state-owned enterprises are overshadowing the private sector. However, this narrative overlooks the reality that over 90 percent of China's business entities are privately owned.
These critiques are grounded in the assumption that the Western economic model, particularly that of the United States, is the only valid framework. This perspective fails to acknowledge the significant social challenges faced by Western economies, such as rising homelessness and income inequality, which highlight the limitations of a purely private enterprise-driven approach.
In contrast, China's economic model prioritizes social outcomes through its policy of common prosperity. This strategy aims to ensure that economic benefits are more evenly distributed across society, moving beyond mere poverty elimination to address broader social inequalities. Unlike the Western model, which often results in a plutocracy where the wealthy dictate economic and social priorities, China's approach seeks to balance economic growth with social equity.
The dynamic nature of China's economy means that the balance between state-owned and private enterprises adjusts in response to changing economic conditions. This rebalancing is not a sign of stagnation but rather a testament to China's commitment to flexible and responsive economic policies. For instance, during the 2008 global financial crisis, Western economies resorted to unprecedented state interventions to rescue private banks deemed "too big to fail." Similarly, China's adjustments are aimed at sustaining economic momentum and supporting common prosperity.
Since the 18th National Congress of the Communist Party of China in 2012, there has been a clear emphasis on deepening economic reforms to enhance the socialist market economic system. This ongoing reform process ensures that China's economy remains robust and capable of meeting its unique set of social and economic criteria, distinguishing it from Western economic models.
Reference(s):
cgtn.com
