It Is Difficult To Explain China'S Economy With Western Economic Concepts.

How to change the status quo of the rich and the poor? Columnist Zheng Yongnian believes that if this situation does not change, the government will become a predatory government in academic circles.

Poverty alleviation, increase of labor income, change of industrial structure (such as encouraging the development of small and medium enterprises), and tax system reform can change the situation of the rich and the poor and achieve social equity.

China's economic order is, in official terms, a mixed economic order.

The west is often puzzled by China's economic order and has various forms of address, such as "state capitalism", "power capitalism" and so on.

At the same time, many scholars find private or private capitalism exist in China.

It is difficult to explain the Chinese economy with the concept of western economics.

In fact, all these so-called "capitalist" forms coexist in China.

At the top is state capitalism, and at the bottom is capitalism that is consistent with the definition of autonomy by Adam Smith, and the two are the cooperation between state and private capitalism or what some people call "crony capitalism".

Chinese officials themselves use a mixed economy to generalize the Chinese economy, which is more true.

In this mixed economic order, the state sector and non-state sector, large enterprises and small and medium enterprises, various industrial sectors, the relationship between the government and the market to maintain a balance.

Once a serious imbalance occurs, the crisis will follow.

No economic order like China can be found anywhere in the world. In such a long historical period, there is always a very strong state sector, and the state plays a direct role in the key economic areas.

The state sector undertakes many functions of the country, including the construction of public infrastructure, the various crises that may happen at any time, and the power to balance the market.

These theories were very clear in the salt and iron theory of the Han Dynasty, and these theories were practiced in all dynasties.

This economic function of the country can not be found in the West.

Some people always associate the state sector with the planned economy of the Mao Zedong era. This is not a historical view.

Mao Zedong only pushed the role of the countries that had long existed in history to the extreme.

Many people use the western economic order to measure China's economic order. It seems that the western economic order is China's reform goal.

But if China can become western, then there will be no Chinese order.

We say that China is a pitional economy, from a planned economy to a market economy, from a state to a private sector.

This does not see the nature of China's economic order.

It is precisely because China has a strong state sector that privatization like the West will not happen in China.

Historically, private economy or private economy has always existed in China, but it is absolutely impossible for China to go to a completely privatized state like the West.

Many economists say that privatization is the way to solve the problem.

This is divorced from China's reality.

Only part of China's economy is privatization.

Comprehensive nationalization and comprehensive privatization are not the normal state of China's economy. The mixed economic order is the normal state of China's economy.

In the western economic order, individualism has gone through a big problem.

The defects of the western economic order, whether in the 1930s economic crisis or in the global financial crisis after the 2008 years, are all because the key financial sectors are controlled and controlled by the private sector. The government has not enough intervention capability. Under the condition of lax supervision, the market is controlled by the private sector, and there is a problem.

At the same time, the western government's intervention in the economy is far weaker than that of the Chinese government.

Western governments have only two levers, namely monetary policy and fiscal policy.

But these two policies often fail.

When interest rates tend to be zero, monetary policy will not work; fiscal policy will fail when government debts are built up.

Compared with the west, the Chinese government not only has monetary and fiscal policies, but also has a large state-owned sector to balance the market economy.

But this does not mean that China's economic system has advantages over western countries.

Today, it is difficult to make a value judgement between China's economic system and various western economic systems.

The reason is very simple. They can balance the market and the state in their own way, but at the same time both will lose their balance in their own way.

If we compare China with the United States, we will see two different market and state relations.

Conceptually, China is the "market in state" and the United States is "state".

That is to say, in China, the market should be subordinated to the principles of the government, while in the United States, the government must obey the market.

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Of course, if we use Marx, Webb, these two theories are only "ideal types", that is to say, in real life, we can not find a government led market or a market led government.

In fact, even under the planned economy, there will be a certain degree of market, such as the black market and the underground market; even in the most typical market economy, such as Hongkong, the government will have a certain impact on the economy.

From experience, in the west, if the market occupies an absolute leading position and the state and society do not have effective power to balance the market forces, then the crisis will inevitably happen.

Conversely, in China, if the national power occupies an absolute leading position and there is no market or social force to balance the national strength, then the crisis will inevitably happen.

For countries, the problem lies in dealing with the government and the market.

How can we find a balance between the two? In the west, the government belongs to the market.

Although overall, the government's economic function is constantly strengthening, but the government is still part of the market.

Whether regulated countries (countries regulate the market) or intervention countries (Keynes doctrine), there is still a clear boundary between the government and the market, and they can not replace each other.

But in China, the market is subordinate to the government.

Although the market is expanding and its functions are being strengthened since the reform and opening up, the market is still a part of the government.

To a large extent, the market is only a tool for the government to achieve its economic and social goals (or political Engineering).

On the whole, the role of the government is greater than that of the developing countries in the latter developing countries.

For example, in Europe, because of its first development, Britain has far more free market space than Germany and France.

Economists from different schools have different views on where the boundary should be, which can be seen from the different opinions and opinions of Adam, Marx, Keynes and contemporary economic schools.

But none of this will hamper the boundaries between the government and the market.

From the market and the government

As in the west, China is still in the process of exploration.

Compared with the west, in the Chinese "government" market mode, the market exists and lives within the boundaries prescribed by the government, and there is no clear boundary between the government and the market.

If the state-owned sector occupies an absolutely dominant position and the government intervenes too much in the market, its disadvantages will arise.

In other words, once the state and the government occupy an absolute monopoly, so that the market can not play a role, there will be problems.

Because of this, China's economic order is also in the process of reform.

Today, China's economic reform is intended to answer several key questions.

First, where is the boundary of the state sector? The state-owned sector must have a boundary.

The state sector can not develop indefinitely, and can not invade the field of non-state sector indefinitely.

Let the two areas remain relatively balanced and allow them to compete with each other.

Fair competition between the two departments of state and non-state is very important.

Second, what are the respective functions and areas of the government and the market? What areas can the government play its role and what areas the government should play its role, but it has not played its due role, and the areas where it should be retreated has not been withdrawn, and these problems need to be clarified.

Such as social reform, social security, medical insurance, education, environmental protection and other social policy areas, the government obviously has not done enough.

Third, where is the balance between economic development and social development? For a long time, the government has only economic policies and poor social policies.

On many occasions, social policies are replaced by economic policies.

For example, in many countries, countries such as social security, health care, education and public housing need to invest heavily, but China is not.

These areas that needed to be invested by the state are often the areas of extreme wealth.

When social policies are not established, the rapid development of the economy is often achieved by sacrificing social methods.

In this way, the Chinese society has fallen into a vicious circle: the faster the economic development, the more serious the society is destroyed; the weaker the society, the more unsustainable the economic development.

More importantly, how to change the status quo of the rich and the poor? This situation will not change, and the government will become a predatory government in academic circles.

Poverty alleviation, increase of labor income, change of industrial structure (such as encouraging the development of small and medium enterprises), and tax system reform can change the situation of the rich and the poor and achieve social equity.

Obviously, the great framework of China's economic order has been established.

Although the reform is still carried out, some institutional elements will be learned from the west, but it will be difficult to become an economic order in the West.

As discussed here, it is not only because the economic order is civilized, but also because it has great advantages in many aspects.