West Versus East: New Capitalism or New Socialism?

This chapter examines the evolving landscape of capitalism and socialism in the twenty-first century, particularly in the context of West versus East dynamics, and asks whether these different systems are, in fact, merging? The purpose is to analyze the transformations occurring within Western capitalism, including the rise of stakeholder capitalism and surveillance capitalism, and to compare these with the state-led approach in China, questioning traditional boundaries between capitalism and socialism. The chapter discovers that Western capitalism is being remade through a combination of inclusion and utility maximization, with stakeholder capitalism addressing some limitations of shareholder primacy, while surveillance capitalism introduces new concerns about exploitation. On the phenomenon of surveillance capitalism, the chapter highlights its impact on individual freedoms and data privacy, as well as the implications for corporate responsibility and societal welfare. It also examines how China’s state capitalism blurs the lines between capitalism and socialism, combining market-driven policies with strong state intervention. Ultimately, the chapter finds that while state capitalism is not the new socialism, the progressive versions of both systems are converging, especially through trends that emphasize economic sustainability and social equity. This progressive synergy has implications for achieving the SDGs, as it can lead to more balanced and inclusive approaches to economic, social, and environmental challenges. However, as identified in this chapter, the resurgence of Trumpian capitalism may disrupt this trajectory.