Senior officials increasingly believe that China is entering a new Cold War with the US – pitting the two countries’ political and economic systems against each other (See August 30 Tip Sheet).
The US says that China’s “state capitalist” system is unfair.So the Party’s top theoretical journal, Qiushi, took that complaint on in a new editorial.The editorial takes issue with the idea that the US economy is devoid of state intervention, citing US government support for the internet, biotechnology, and shale gas.
It goes on to argue that the US’s real goal is to keep China down:“The use of the so-called ‘state capitalism’ …[stirs up] public opinion to contain…developing countries, especially China.”
“The fundamental reason why some Western political leaders attack Chinese state-owned enterprises is that Chinese state-owned enterprises continue to be better, stronger, and bigger.”
“[China’s SOEs] are better able to serve China's development…and provide a reliable guarantee of the realization of the great rejuvenation of the Chinese nation.”
“And this is what [Western critics] are extremely reluctant to see.”
Get smart: China’s top leaders have no plans to relax their control over the commanding heights of the economy. That’s why the broader US-China economic tensions are so intractable.