China’s Economic Contradictions

This chapter analyzes the contradictions within China’s economic policies, shaped by the Communist Party’s struggle to maintain state control over an economy increasingly shaped by market forces and private enterprise. This tension has intensified under Xi Jinping, who has prioritized stability, control, and self-sufficiency, often at the expense of other economic goals. The chapter highlights three core contradictions: growth vs. stability, dynamism vs. control, and global integration vs. self-reliance. Through case studies, it illustrates how interventions aimed at achieving Party objectives have inadvertently stifled economic growth, reduced the innovativeness of Chinese companies, and strained China’s economic relations with the world.