Final answer:
The Beijing Consensus is a Chinese-led economic model that advocates for state intervention and development through exports, differing from the Washington Consensus, which is characterized by fiscal discipline and liberal market policies. It is called "neo-mercantilism" due to its focus on building national economic power through a favorable trade balance and controlled market engagement.
Step-by-step explanation:
The Beijing Consensus refers to a Chinese-led economic model that contrasts with the Western-oriented Washington Consensus. The Beijing Consensus emphasizes state intervention in the economy and development through export-led growth, differentiating itself from the Washington Consensus, which promotes fiscal balance, sound macroeconomic indicators, and increased international trade with the idea of promoting growth and development. Unlike the Washington Consensus, the Beijing Consensus does not strictly prescribe liberal economic policies; instead, it blends elements of a market economy with active government direction and control characteristic of China since the economic reforms initiated by Deng Xiaoping. This approach has been critical in China's emergence as an economic superpower, with significant state involvement in strategic sectors and a focus on building large state-owned enterprises.
China's economic model under the Beijing Consensus is sometimes referred to as "neo-mercantilism" due to its focus on accumulating national economic power through a favorable balance of trade and strategic management of domestic and foreign markets. This accumulation of economic power is achieved, in part, through policies aimed at promoting exports and limiting imports, mirroring mercantilist policies historically practiced by nation-states to maximize their wealth and power.