China’s view of the world

FT columnist Martin Wolf recently participated in an international conference convened by the Tsinghua University Academic Center for Chinese Economic Practice and Thinking. He describes it as “franker than any I have participated in during the 25 years I have been visiting China”, and lists seven propositions that the Chinese elite expressed to their foreign guests:

1. China needs strong central rule.
2. Western models are discredited.
3. China does not want to run the world.
4. China is under attack by the US.
5. US goals in the trade talks are incomprehensible.
6. China will survive these attacks.
7. This will be a testing year.

Martin simply describes these seven propositions, without criticism. I assume that he agrees with them, but perhaps he will express disagreement in a future column. Or, perhaps not. In the meantime, I pass along to you his description of proposition number two, which I found most interesting, and most disturbing for western states:

The Chinese have developed a state system run by a technocratic elite of highly educated bureaucrats under party control. This is China’s age-old imperial system in modern form. The attraction that western-style democracy and free-market capitalism may have exercised on this elite has now withered. They stressed the failure of western states to invest in their physical or human assets, the poor quality of many of their elected leaders and the instability of their economies. One participant added that “90 per cent of democracies created after the fall of the Soviet Union have now failed”. This risk is not to be run.

All this has increased confidence in China’s unique model. Yet this does not mean a return to a controlled economy. On the contrary, as a participant remarked: “We believe in the fundamental role of the market in allocating resources. But government needs to play a decisive role. It creates the framework for the market. The government should promote entrepreneurship and protect the private economy.” One participant even insisted that the new idea of a “core leader” could lead to strong government and economic freedom.

Martin Wolf, “How the Beijing elite sees the world“, Financial Times, 2 May 2018 (gated paywall).

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