资本主义是一个经济系统中的一个计划，生产资料是私人拥有和经营的利润。在系统中，供给、需求、价格、分配和投资主要由自由市场的私人决定决定，利润分配给投资于企业的所有者，而工资是由企业雇佣的工人支付的。因此，它需要一类资本所有者的资本物品的私有制，无论是单独的，集体或通过一个国家的设备，经营利润或服务于资本所有者的利益。资本货物是用来生产其他商品或服务的商品。资本主义还涉及到进一步的抽象的货币进入其他可交换资产和积累的钱，通过所有权，交换，利息和各种其他金融工具。
Capitalism is a scheme in an economic system in which the means of production are privately owned and operated for profit. In the system, supply, demand, price, distribution, and investments are determined mainly by private decisions in the free market .Profit is distributed to owners who invest in businesses, and wages are paid to workers employed by businesses. Thus it entails the private ownership of capital goods by a class of capital owners, either individually, collectively or through a state apparatus that operates for a profit or serves the interests of capital owners. Capital goods are goods used to produce other goods or services. Capitalism also involves the further abstraction of money into other exchangeable assets and the accumulation of money through ownership, exchange, interest and various other financial instruments.
In China capitalism occurred through the following processes: First through mercantilism where merchants explored geographic locations and traded for profit using different commodities they found in different locations. Then through industrialism where the merchants believed that the state could only increase its wealth at the expense of another state. Thus they decreased the traditional handicraft skills and increased mechanization. This led to development of factories for manufacturing which increased output. This led to division of labor between and within work spaces leading to establishment of domination of capitalist mode of production. Later Keynesianism and neoliberation followed. This was disadvantaged by inflation which slowed the output production. Then the general public's interest was shifted from the collectivist concerns of Keynes's managed capitalism to a focus on individual freedom and choice, called "remarketized capitalism." Lastly there was globalization where there is international trade of the goods produced. This increased the mobility of people and capital since the last quarter of the 20th century, combining to circumscribe the room to maneuver states in choosing non-capitalist models of development.
In China's capitalism, the government does not prohibit private property or prevent individuals from working where they please. It does not prevent firms from determining what wages they will pay and what prices they will charge for their products. However, it has minimum wage laws and minimum safety standards. Also it has competition laws that prohibit monopolies and cartels from forming. Monopolies occurred due to different companies supplying the same commodity to the same buyers while cartels occur when different companies merge with only one interest of marking profit.
Authoritarian capitalism has led to many advantages in China leading to increased economic growth. It guarantees individual freedom and rights in running businesses. First, it involves extensive economic interventions. This is a foreign exchange policy that supports industrial policies as part of an export-led economic growth strategy. It directs bank loans and investment funds towards areas of economic growth. This has made China highly dependent upon foreign investment funds and technology for its growth. The dependence on outsiders is exacerbated by institutional arrangement that work against domestic entrepreneurs to provide an indigenous source of economic growth. Thus individuals have freedom to choose from other sources of money to expand there businesses. This gives individuals the freedom of looking for other means of finances and resources apart from their own country.
It also supports free thinking and inventiveness. This suppresses individualism and intellectual freedom that undermines the independence of entrepreneurs as they access their capital. This paves way for everyone's freedom to give their decisions and being analyzed independent on there intellectual capability. It leads to a number of ideas to be analyzed, discussed and implemented in the business according to their advantages. It also gives the business the best decision with the best output
It has encouraged political freedom in China as transactions in a market economy are voluntary with a wide diversity that voluntarily permits its activities is a fundamental threat to repressive political leaders and greatly diminish power to coerce. Thus suppression is not expressed as capital owners control everything in the market. Ann Rand argues that "capitalism is the only morally valid socio-political system because it allows people to be free to act in their rational self-interest." She wrote: "Capitalism is a social system based on the recognition of individual rights, including property rights, in which all property is privately owned."
China has also increased in its self organization due to the profit motive in the businesses. The promise of profits gives entrepreneurs incentive to use their knowledge and resources to satisfy those wants. Serving the activities of millions of people, each seeking own interest, are coordinated. This is because it permits many solutions to be tried, and that real-world competition generally finds a good solution to emerging challenges and argues central planning often selects inappropriate solutions as a result of faulty forecasting e.g. before the central bank set interest rates and this limited control creates inefficiencies because the long-term activity of the economy cannot be predicted.
China's capitalization recognizes private property and allows private profit seeking businessmen. There communist party invites businessmen to join its ranks. Thus the country has allowed foreign investors in the country as long as they meet the country's standard of running profit marking firms. This has attracted many foreign investors leading to the increased economic growth.
Attraction of foreign investors has led to adequate utilization of resources in the country. Investors utilize all the available resources in the country. For example, energy production utilizes all the available souses e.g. geothermal energy from soil, wind energy from wind, hydroelectric power from water, and solar energy from sun. These utilizations of resources prevent underutilization of resources and effective deliverance of goods and services to people. Production of efficient services and goods has led to considerate prices to the citizens of China. This lead to reduced cost of living as investors reduces prices to sell. Authoritarianism leads to short-run economic gains as there are no logical and economic limits. Investors get there profits back within a short period after investment. This helps individuals in investing in other projects. Lack of authoritarian capitalism leads to China's government involvement in controlling country's resources. An economic system in which the state directs the economy is economy. They control all major sectors of the economy and formulate all decisions about the use of resources and the distribution of output. They decide what to be produced and direct lower-level enterprises to produce those goods in accordance with national and social objectives. Planned economies are in contrast to unplanned economies e.g. where production, distribution, pricing, and investment decisions.
Capitalism is also associated with unfair distribution of wealth and power which leads to monopoly or imperialism, wars and various forms of economic and cultural exploitation; repression of workers, as the government is involved in setting prices and wages. This is known as planned economy. It is an economic system in which the central government controls industry by making all decisions regarding the production and distribution of goods and services. It's also referred to as command economy or centrally planned prices are always set according to their expected profit not considering individuals capability in affording the commodity. Different companies are set in different places depending on China's government priority and capability. This leads to places with companies increase in growth and wealth as they provide employment to the nearby population with salary to depend on. Increased wealth leads to high living standard and thus power over other individuals in places with no jobs to lean on.
Its regarded by many socialists that capitalism in China is irrational in that production and the direction of the economy are unplanned, creating many inconsistencies and internal contradictions. Companies constructed without correct analysis of resources leading to closure of companies and loosing employment. This has lead to increased poverty cases as there is increased population with increased loose of employment. Economic instability is also experienced. Continuous capitalism requires continual economic growth, and will inevitably deplete the finite natural resources of China, and other broadly utilized resources. such as Immanuel Wallerstein,one of the scholars, have argued that forced labor e.g. slaves, prisoners, and other coerced persons is compatible with capitalist relations similar to original goods produced to the market without quick knowledge.
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。