Commentary
Yukon Huang, Isaac B. Kardon, Matt Sheehan
{
"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.
- Three Takeaways From the Biden-Xi Meeting
- Europe Narrowly Navigates De-risking Between Washington and BeijingCommentary
Yukon Huang, Genevieve Slosberg
Recent Work
More Work from Carnegie Endowment for International Peace
- In Its Iran War Debate, Washington Has Lost the Plot in AsiaCommentary
The United States ignores the region’s lived experience—and the tough political and social trade-offs the war has produced—at its peril.
Evan A. Feigenbaum
- What GDP Means in a Soft Budget Economy Like ChinaCommentary
The GDP measure is an attempt to measure value creation in an economy. This measure, however, can vary greatly between economies that have disciplinary mechanisms that force them to recognize investment losses quickly and economies that don’t, and can postpone this recognition for many years.
Michael Pettis
- Some Countries Are Better Prepared for an Energy Crisis This TimeCommentary
As the Iran war shocks oil prices, countries that have invested in renewables, EVs, and battery development since the 2022 Russian invasion of Ukraine are seeing the value of their investments.
Noah Gordon
- Rewiring the South Caucasus: TRIPP and the New Geopolitics of ConnectivityArticle
The U.S.-sponsored TRIPP deal is driving the Armenia-Azerbaijan peace process forward. But foreign and domestic hurdles remain before connectivity and economic interdependence can open up the South Caucasus.
Thomas de Waal, Areg Kochinyan, Zaur Shiriyev
- Africa’s Global Economic Edge: Advancing Strategic SectorsArticle
In key sectors such as critical minerals, specialty agriculture, and fintech, Africa can become a global powerhouse by investing more in manufacturing, value-add, and scaling.
Kholofelo Kugler, Georgia Schaefer-Brown
