Marxists love to talk about “contradictions.” Ironically, the Chinese political and economic system is full of them, including the following:
- Marxism is a universal political theory, born in Europe, which holds that the state will ultimately wither away and that inequality will disappear. The Chinese system is ostensibly Marxist, but in reality, the Chinese government believes firmly in Chinese exceptionalism, loathes western political thought, promotes economic inequality, and has absolutely no interest in withering away.
- “Socialism with Chinese characteristics” is actually capitalism in which the state picks and heavily supports winners through protectionist regulation, subsidies, and the unequal application of the law.
- The Chinese government believes in economic growth above all other values except political stability, which means that it can’t support essential characteristics of a typical capitalist economy such as transparency, a free press, and the rule of law.
None of this matters much as long as the country prospers. The government has been able to avoid economic crises with a mixture of mild repression and cheap credit. That won’t work forever, however, and when the crisis comes, the contradictions will be laid bare for all to see.