China has succeeded so much by moving away from a planned economy when they were fully planned they were one of the poorest nations in the world. Most successful nations are mixed economies and yes, this is a settled question.
Past performance is no indication of future success. It doesn't matter what's been successful in the past, these things can change. Communism was considered more successful than capitalism for a large chunk of the 20th century (because it was), then that changed and so did the narrative.
None of this is settled, because it's a living system that changes over time. What may have been perfectly true in 1850 might not be remotely accurate in 2050.
> Communism was considered more successful than capitalism for a large chunk of the 20th century (because it was), then that changed
The word you're looking for is "collapse". It's when something is stable at one point in time, but then later breaks down. That's what "changed". It wasn't random like weather or something. The economic systems collapsed.
> None of this is settled
The fact that it has happened numerous times in different parts of the world makes it pretty settled in my mind.
They were very poor before central planning, and the central planning is what got them from being very poor to relatively poor and economically powerful.
If you look on Alibaba or AliExpress and see different companies competing and undercutting each others prices, I don't really see it as a planned economy.
The CCP publishes their primary central planning mechanism for all to see. They just adopted the new 15th Five Year Plan in March [1].
There’s a whole bureaucracy just to coordinate the implementation at the sector, provincial, and corporate level driven by the State Council, NDRC, and NPC. Governments at all levels are involved with coming up with their own implementation plans to execute on the Five Year Plan.
You can trace decades of Chinese industrial development to those plans but the Chinese system is very different from the Soviet central planning mechanism, which is why I think you’re misinterpreting Alibaba’s price competition. The CCP explicitly allows non-state owned enterprises like Alibaba and the manufacturers on it to compete; that’s their whole point within the system, and they operate within the regulatory environment setup to promote the five year plan instead of quotas like the Soviet system. The resolution of the planning is different, but it’s very much there.
I think a better term might be a “steered economy”. You see fierce competition in some very specific and preordained market areas. Lithium batteries, solar panels, electric cars, industrial and autonomous robots, AI.
Now go look at the 5 year plan from Beijing. Green technology, robotics, mature node chips, and AI are the focuses.
In other words, it isn’t a mistake that China dominates in the industries that it does.
China has succeeded so much by moving away from a planned economy when they were fully planned they were one of the poorest nations in the world. Most successful nations are mixed economies and yes, this is a settled question.
Past performance is no indication of future success. It doesn't matter what's been successful in the past, these things can change. Communism was considered more successful than capitalism for a large chunk of the 20th century (because it was), then that changed and so did the narrative.
None of this is settled, because it's a living system that changes over time. What may have been perfectly true in 1850 might not be remotely accurate in 2050.
> Communism was considered more successful than capitalism for a large chunk of the 20th century (because it was), then that changed
The word you're looking for is "collapse". It's when something is stable at one point in time, but then later breaks down. That's what "changed". It wasn't random like weather or something. The economic systems collapsed.
> None of this is settled
The fact that it has happened numerous times in different parts of the world makes it pretty settled in my mind.
> Communism was considered more successful than capitalism for a large chunk of the 20th century (because it was) According to whom?
They were very poor before central planning, and the central planning is what got them from being very poor to relatively poor and economically powerful.
This is objectively not the case, selling goods to America and Europe is what made China rich and that is due to a free market system they implemented
1 reply →
If you look on Alibaba or AliExpress and see different companies competing and undercutting each others prices, I don't really see it as a planned economy.
The CCP publishes their primary central planning mechanism for all to see. They just adopted the new 15th Five Year Plan in March [1].
There’s a whole bureaucracy just to coordinate the implementation at the sector, provincial, and corporate level driven by the State Council, NDRC, and NPC. Governments at all levels are involved with coming up with their own implementation plans to execute on the Five Year Plan.
You can trace decades of Chinese industrial development to those plans but the Chinese system is very different from the Soviet central planning mechanism, which is why I think you’re misinterpreting Alibaba’s price competition. The CCP explicitly allows non-state owned enterprises like Alibaba and the manufacturers on it to compete; that’s their whole point within the system, and they operate within the regulatory environment setup to promote the five year plan instead of quotas like the Soviet system. The resolution of the planning is different, but it’s very much there.
[1] https://en.wikipedia.org/wiki/15th_Five-Year_Plan
I think a better term might be a “steered economy”. You see fierce competition in some very specific and preordained market areas. Lithium batteries, solar panels, electric cars, industrial and autonomous robots, AI.
Now go look at the 5 year plan from Beijing. Green technology, robotics, mature node chips, and AI are the focuses.
In other words, it isn’t a mistake that China dominates in the industries that it does.
> China isn't exactly struggling right now.
Have you asked people in China about this?