What can liberal capitalism learn from China, is the challenging question Annette Nijs, Executive Director Global Initiative of the China Europe International Business School (CEIBS) poses in Neurope.eu. After the start of the global crisis, it is time for a critical self-assessment says Nijs. Just like China started to change 30 years ago, now Europe has to change.
The Chinese leadership realized it had to change. It choose to balance liberal capitalism with state capitalism: the market economy with Chinese characteristics. From the mid-nineties the State started to take back some control on the accumulation of capital. The invisible hand of the market was joined with the visible hand of the government…
And the result? China is doing more than just outperforming the economic growth of other nations. China is successfully making the shift from the factory of the world to the laboratory of the world. There are now more than 30 Chinese companies in the Global Fortune 500. The automotive industry in China is outsourcing to the US. China has an incredible fast growing pool of foreign reserves. China is a dominant geo-political power and a crucial player in the reshaping of the global financial and monetary system. China sparked a debate on the dominance of the US dollar. At global trade and climate talks China’s word is given considerable weight. The world’s best engineers and researchers are trained and working in China. The Chinese are top in the world in new green technology from battery powered cars and wind energy to eco-cities.
In the mean time, the US and Europe are adjusting to a New Normal of lower economic growth.