China’s Changing Economy

{
  "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"
  ]
}

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.

Recent Work

Commentary
Three Takeaways From the Biden-Xi Meeting
- Yukon Huang, Isaac B. Kardon, Matt Sheehan
Commentary
Europe Narrowly Navigates De-risking Between Washington and Beijing
- Yukon Huang, Genevieve Slosberg

Economy East Asia China

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie Endowment for International Peace

Paper
Threading the Needle: India’s Path Forward with China
After the chill in ties between 2020 and 2024 that brought India–China relations to their lowest point in several decades, the two countries have engaged each other afresh. This paper argues that there are predominantly four imperatives guiding India’s approach to China, and they exist in an order of priority.
Saheb Singh Chadha
Article
In the Middle East and North Africa, America and China Converge More Than They Diverge
Middle powers in the region will keep hedging between Washington and Beijing. It’s in the great powers’ interests to play along.
Amr Hamzawy, Kathryn Selfe
Paper
The Future of American Economic Power
The future of American economic power will be determined by the interplay between Trump’s ambitions and the global backlash against them, as well as economic developments outside the direct control of the government, such as advances in AI.
Peter Harrell
Commentary
President Lee Jae Myung: A Year in Power
President Lee marked his first year in office after one of the most tumultuous periods in South Korean politics. Though Lee has enjoyed a high approval rating, a large majority in the National Assembly, and foreign policy victories, Lee and his party’s political fortunes depend on generating economic growth, learning the right lessons from the recent local elections, and managing contentious factional strife within his political base.
Chung Min Lee
Paper
From Trade Dependence to Geopolitical Leverage: The EU in an Era of Weaponized Interdependence
As geopolitical rivalry weaponizes global supply chains, the EU’s true vulnerability lies in emerging-risk imports. For these goods, suppliers are growing more concentrated, substitution more difficult, and political risk is looming.
Sinan Ülgen

More Work from Carnegie Endowment for International Peace

Paper

Threading the Needle: India’s Path Forward with China

After the chill in ties between 2020 and 2024 that brought India–China relations to their lowest point in several decades, the two countries have engaged each other afresh. This paper argues that there are predominantly four imperatives guiding India’s approach to China, and they exist in an order of priority.

Saheb Singh Chadha

Photo of commercial ship anchored near the Strait of Hormuz.

Article

In the Middle East and North Africa, America and China Converge More Than They Diverge

Middle powers in the region will keep hedging between Washington and Beijing. It’s in the great powers’ interests to play along.

Amr Hamzawy, Kathryn Selfe

Container ship arriving in Savannah, Georgia

Paper

The Future of American Economic Power

The future of American economic power will be determined by the interplay between Trump’s ambitions and the global backlash against them, as well as economic developments outside the direct control of the government, such as advances in AI.

Peter Harrell

Commentary

President Lee Jae Myung: A Year in Power

President Lee marked his first year in office after one of the most tumultuous periods in South Korean politics. Though Lee has enjoyed a high approval rating, a large majority in the National Assembly, and foreign policy victories, Lee and his party’s political fortunes depend on generating economic growth, learning the right lessons from the recent local elections, and managing contentious factional strife within his political base.

Chung Min Lee

Europe trade economy container supply chains

Paper

From Trade Dependence to Geopolitical Leverage: The EU in an Era of Weaponized Interdependence

As geopolitical rivalry weaponizes global supply chains, the EU’s true vulnerability lies in emerging-risk imports. For these goods, suppliers are growing more concentrated, substitution more difficult, and political risk is looming.

Sinan Ülgen