Chinese Economics Thread

[SamuraiBlue]

I read somewhere that CCP will abandon planned economy meaning they will stop announcing five year economy plan, is this true?

 

[PikeCowboy]

there's no indication that they'll stop 5 year plans, but the GDP statistic will likely become less prominent, and there likely won't be a specific numeric GDP target for the next few years at least

I would say that the new "Chinese standards 2035" coming out on top of "Made in China 2025" is proof enough that planned economy is alive and strong in the CCP politbureau and the NDRC

 

[Mcsweeney]

I think people were taking Xi Jinping out of context when he said they wouldn't "go back" to the planned economy. I'm pretty sure he's referring to the planned economy like they had back in Chairman Mao's day. I can't see why they would abandon the 5 year plans that have worked so well.

 

[Tam]

I read somewhere that CCP will abandon planned economy meaning they will stop announcing five year economy plan, is this true?

Nah. You won't fix what isn't broken, or working remarkably well. Meaning ultracapitalist society built upon a backbone of socialist infrastructure and government initiated equity investment (Roosevelt-Shimamura-Wang Anshi economics.)

 

[SamuraiBlue]

Nah. You won't fix what isn't broken, or working remarkably well. Meaning ultracapitalist society built upon a backbone of socialist infrastructure and government initiated equity investment (Roosevelt-Shimamura-Wang Anshi economics.)

I wouldn't say it is broken but it does have flaws like the sudden COVID-19 epidemic in which you can see how easily you can throw in a spanner into the works. It is equally very difficult to build in a contingency plan in case of such emergencies.
Basically everyone can pat their backs when it goes accordingly as planned but impossible to point fingers when it goes terribly wrong.

 

[AssassinsMace]

The GDP target was a superficial measure. The West thinks it's was a lie anyway. Now they want to see truth in it because removing the target means Beijing isn't optimistic about the economy? Western countries were angry at China because they wanted to believe if they took a hit, the world would follow. That didn't happen for China after the 2008 Western Financial Crisis which got the West angry and were talking about taking up anti-China trade measures. And then all of the sudden China's economy was performing worse. Now Western critics could have a sigh of relief a decade later. I posted an article earlier in here how COVID-19 has supposedly tanked the economy in China yet no predicted civil unrest when someone put out there that China needed to grow at least 6.5% every year to prevent a rebellion of the masses. Beijing supposedly put that number out there but again the critics pick and choose what they want to believe from the Chinese government and predictably it's always the bad news they want to believe.

 

[zgx09t]

I wouldn't say it is broken but it does have flaws like the sudden COVID-19 epidemic in which you can see how easily you can throw in a spanner into the works. It is equally very difficult to build in a contingency plan in case of such emergencies.
Basically everyone can pat their backs when it goes accordingly as planned but impossible to point fingers when it goes terribly wrong.

Dude, every country with a central bank does the same thing. They may not call it 5 year plan or annual plan or whatever, but that's exactly what they do in essence and practice. What do you think Fed target rate does? What do you think BoJ is doing with the negative rate? Google nominal income targeting.

 

[antiterror13]

I read somewhere that CCP will abandon planned economy meaning they will stop announcing five year economy plan, is this true?

I think you just simply misinterpreted it ..... not surprised though

 

[Tam]

I wouldn't say it is broken but it does have flaws like the sudden COVID-19 epidemic in which you can see how easily you can throw in a spanner into the works. It is equally very difficult to build in a contingency plan in case of such emergencies.
Basically everyone can pat their backs when it goes accordingly as planned but impossible to point fingers when it goes terribly wrong.

Just like the long term plans in the PLA military, they are not completely fixed. There always need for some wiggle room for changes in short term situation. The thing is, the centrally planned economy may actually be much more agile in dealing with such short term situation changes than an unplanned one.

 

[broadsword]

Differentiate between economic planning and social administration.