China’s Changing Economy

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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

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Three Takeaways From the Biden-Xi Meeting
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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.

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