China’s Leadership Rejects Capitalist Model

Published: 27 October 2017. 
Author: Michael Roberts.

Intro by: TSN Editor.

The 19th National Congress of the Communist Party of China has just finished. These Congresses are only held every five years and must approve the next Five Year Plan and the leadership of the Party for the coming period. At this Congress President Xi Jinping consolidated his power and won support for his policy platform for China which confirms its pro state ownership model. This will have profound consequences for the global economy and political developments.

Below we publish an important assessment of the significance of the Communist Party Congress and China’s economic and political direction, from renowned marxist economist, Michael Roberts.

Xi takes full control of China’s future

Xi Jinping has been consecrated as China’s most powerful leader since Mao Zedong after a new body of political thought carrying his name was added to the Communist party’s constitution.  The symbolic move came on the final day of a week-long political summit in Beijing – the 19th party congress – at which Xi has pledged to lead the world’s second largest economy into a “new era” of international power and influence.

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China: Is It All Over?

China crashPublished: 8 August 2015
Author Michael Roberts
Intro by: TSN Editor

The stock market in China has had a mighty fall in the last few weeks. Does this imply a coming economic crisis or is it just another bump in the road for China?s economic miracle?


In recent weeks, the Chinese stock market has taken a massive plunge and in July shares suffered their worse month in six years, falling by 29% from the peak in June. This followed a humungous boom in stock prices since the beginning of 2015. Indeed, since August of last year, the market index in Shanghai has risen 160%. And even after the collapse in the last month the index is still nearly 80% higher than this time in 2014.

This stock market bubble is of the proportion of the US in the 1920s that led to the crash of 1929 and the subsequent great depression. Is this what is in store for the Chinese economy as well?

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Is There a Economic Bubble in China About to Burst?

urlPublished: 15 June 2015
Author: Michael Roberts

China announced a cut in its benchmark interest rate to just over 5%. This was the third rate cut since last November. The government is clearly worried that the powerhouse Chinese economy is slowing down so much that it is threatening its ability to provide enough jobs and incomes for the people still flooding into the teeming cities. A failure to deliver on growth and jobs would put into jeopardy the rule of the Chinese elite.

China?s economy is now growing at its slowest rate since the end of the global financial crisis and the great recession in 2009. On official figures, first-quarter growth has slowed to 7% year on year from 7.3% last quarter, and most unofficial estimates reckon growth is really even slower. And it used to be a benchmark that China had to grow at 8% a year to absorb the expansion of the labour force from rural areas into the factories and cities. For behind China?s impressive economic rise has been the biggest human migration in history. By 2013, some 269 million rural residents had become migrant workers in cities, offering cheap labour and sustaining urban growth.

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