Q&A
- +1
Sheena Chestnut Greitens, Oriana Skylar Mastro, Yukon Huang, …
{
"authors": [
"Yukon Huang"
],
"type": "legacyinthemedia",
"centerAffiliationAll": "dc",
"centers": [
"Carnegie Endowment for International Peace"
],
"collections": [],
"englishNewsletterAll": "asia",
"nonEnglishNewsletterAll": "",
"primaryCenter": "Carnegie Endowment for International Peace",
"programAffiliation": "AP",
"programs": [
"Asia"
],
"projects": [],
"regions": [
"East Asia",
"China"
],
"topics": [
"Economy"
]
}
Source: Getty
In The Media
China’s Changing Economy
In the past three decades, China has changed from what would be described as a centrally-planned economy to what could be called a state-led capitalist system that is more private-oriented and subject to market forces.
By Yukon Huang
Published on May 22, 2015
Source: U.S.-China Policy Foundation
In an interview with China Forum, Carnegie’s Yukon Huang discussed how China’s economy has shifted in the past decades. He described how China has changed from what would be described as a centrally-planned economy to what could be called a state-led capitalist system that is more private-oriented and subject to market forces. This was not an easy process; China’s changing economy means lowering economic growth rates and property adjustment. Huang said that going forward, it remained to be seen whether the expected 5-6 percent growth in the next 5-10 years is sustainable and what is the quality of that growth.
Huang also discussed anticorruption efforts in China and their potential impact on China’s economic growth. He said that in the short-term, these efforts will likely hinder growth. Corruption in China has actually been a positive for economic growth in the past, Huang explained, but it has other negative consequences. In the long-term, if China continues to become more market-oriented, corruption becomes less necessary. Therefore, Xi’s campaign against corruption could potentially be good for long-term growth.
This interview was originally broadcast by the U.S.-China Policy Foundation.
About the Author
Yukon Huang
Senior Fellow, Asia Program
Huang is a senior fellow in the Carnegie Asia Program where his research focuses on China’s economy and its regional and global impact.
- What to Watch When Trump and Xi Meet in Washington
- Three Takeaways From the Biden-Xi MeetingCommentary
Yukon Huang, Isaac B. Kardon, Matt Sheehan
Recent Work
More Work from Carnegie China
- Untangling the Nuclear Knot: A Constructive Agenda for Managing China’s Nuclear Relations with the United States and Its AlliesPaper
The nuclear relationship between China and the United States is increasingly shaped by widening perception gaps rather than deliberate strategic design.
Tong Zhao
- Who Paid for China’s Last Debt Cleanup, and Who Will Pay for the Next?Commentary
China’s banking crisis in the 2000s was resolved by transferring the costs to households through financial repression—a decision that recapitalized the banks while exacerbating the structural imbalances that continue to shape the Chinese economy today.
Michael Pettis
- Caught in the Middle: Chinese Biotech Firms’ Divergent Responses to U.S. SanctionsCommentary
Chinese biotech companies have been on the receiving end of U.S. economic coercion. Yet their responses have differed significantly because firm and state interests are not uniformly aligned. For Washington, treating all Chinese tech firms the same, irrespective of their actual interests, risks pushing them farther into Beijing’s corner.
Xue Gong
- Are Data Centers the Solution to China’s Renewables Excess Capacity?Commentary
China’s latest energy plan explicitly calls for integrating data centers into the electricity system, particularly connecting them to green energy. It appears Beijing wants to use compute as a source of domestic demand to absorb renewables excess capacity.
Damien Ma
- Trump and Xi Are Angling for Three Years of StabilityCommentary
But their "principal to principal" model will only be as effective as the political strength of each leader back home.
Damien Ma
