China manages capitalism for its own gain. This explains how.

Source: http://ift.tt/g5lp9S - Thursday, September 24, 2015
In this 2014, file photo, President Obama toasts with Chinese President Xi Jinping at a lunch banquet in the Great Hall of the People in Beijing. Xi is in the U.S. this week. (Greg Baker, File-Pool/Associated Press) Chinese President Xi Jinping is visiting the United States this week, meeting with American CEOs, dining at the White House, and speaking at the 70 th United Nations General Assembly. But there’s a shadow over the visit. Recently, Beijing has been acting against its foreign companies. It has pursued anti-trust actions and intellectual property enforcement in ways that are biased toward Chinese industry. And it has undertaken sweeping measures to prop up the country’s stock market, the ups and downs of which have reverberated globally . Scholars and media analysts alike link these moves to Xi’s quest to consolidate his own political power and safeguard the survival of the Chinese Communist Party . They also attribute these developments to growing nationalism and protectionism. But such actions are nothing new: State intervention in business activities and the stock market are Chinese business as usual. They date back to Deng Xiaoping’s reopening of the country to foreign investment in 1992, a few years after the Tiananmen Square Incident. My recent article shows that Chinese-style capitalism involves two primary components. First is market coordination, which combines competition with regulation to achieve industrial m

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