Question

Most Communist governments also have a communist economic system. China has limited capitalism. How is this

possible? List three ways in which capitalism exists in modern day China.

Answer 1

Three ways in which there is a capitalist economic system in China today are:

1- On the one hand, there is an industrial and technological production system in which foreign companies settle in the country, investing capital and producing goods at a lower cost, employing local workers and providing the brand and know-how for the elaboration of products.

2- On the other hand, China markets its products in the international market, establishing commercial relations with other nations and even signing free trade agreements with many of them.

3- Finally, there is an internal market for the sale of these products within China, through which its citizens can access said goods using money as a means of payment. This money, in turn, comes from the salary they obtain for their work, thus constituting a true market economy.