China is known to have great social and regional imbalances which have caused concentration of incomes, social polarization and increased inequalities. The social base of the Chinese has led to the emergence working classes e.g. middle class which includes most qualified sectors of wage earners. The working class has experienced deep transformations and about 20% have been hit by privatization due to industrialization. There living and working conditions form the bitterest face of the capitalized China. This is due to the low wages, lack of health and safety at work and violation of labor laws and interminable working hours. This has lead to struggle in satisfying the social standards.
Thus capitalism only depends on loose credit policy, vigorous stimulus spending and the logic of export-led growth. Thus the question of bursting or deflating is a matter of when and not if. China's state calls for rebalancing in consumption and investment in 2003as economic imbalances have worsened. The present model has caused numerous social and environmental disasters thus causing imbalances in policies adjustments
China has continued relying on exports for growth thus propping up exporters and keeping employment high for social stability. Although this undermines economic restructuring and efficiency-enhancing steps by the export sector that would push up unemployment. Thus avoids the problem of unemployment. China is naïve to extrapolate recent economic performances as an indicator to future success and thus enjoying the rising economics fortunes and global political influence. As it is the China's authoritarian capitalism contradicts economic policies which will undermine its future economic growth prospects, though it's a present success in the
Lack of capitalism mainly due to strong leadership or due to singular collective identity in China would have led to the ability to commit violence and wage war in order to keep the nation strong They claim that culture is created by the collective national society and its state, that cultural ideas are what give individuals identity, and thus they reject individualism.
China's authoritarian capitalism is in the company of politicization of crime. Crime is politicized with selective prosecution and executions motivated by an urge to remove political challenges. This is because the tactic is reinforced by the fact that political officials face few external checks and balances. Politics is criminalized when opposition to the regime is absolutely not tolerated .Political crisis occur due to short comings in there extensive elements of there development. This promptly leads to fall of economic structures first.
China's authoritarian capitalism leads to emergence of local entrepreneurs and researchers conducting original research. This leads to production of counterfeited goods country. The Olympic Games have been great showcase of China's capitalism that began in1978 and in 1990's an unstrained process of privatization of state companies and liberating public services. Now two-thirds of the wages earned is from private companies. And this is the horizon towards which the country is heading "in spite of the rhetoric about harmonious society from President Hu Jintao." This has led to increased living standards. Though, after decades of experimenting with various restructuring, the condition of these enterprises has worsened despite steadily increased labor productivity which has been affected by eroded market condition and strain of bank loans. This has lead to drop in cash flow, interest coverage ratios, accounting profit margins to generate sufficient surplus for cash inflows.
Though some companies have prospered under the reforms, they have also suffered from increased competition from both output and input markets and from constraints on their ability to raise the rate of exploitation by reducing the wages. Also, value of labor power and means of production have increased but the total value generated has been mightier than anticipated. This because they generate increased sales simply by producing cheaper goods. It is therefore insufficient relying on rising labor productivity to solve the problem. Management should improve strategies for competing with the output market in order to generate the required surplus cash to meet the existing obligations other than risking in next generation.
虽然一些公司在改革的繁荣，他们也遭受了从产量和投入市场的竞争增加，并从他们的能力，以提高通过降低工资的剥削率的限制。同时，对生产劳动的权力和手段价值有所增加但总价值已经比预期的产生。这是因为他们通过生产更便宜的商品而简单地增加销售。因此，依靠提高劳动生产率来解决问题是不够的。管理层应改进与输出市场竞争的策略，以产生所需的盈余现金，以满足现有的义务以外的下一代的风险。
