Second, economically, we call it a socialist market economy.In fact, it is a kind of mixed economy. But many countries also have a mixed economy. But the Chinese one is unique.It means the state owns so many resources, from minerals to land, everything. Yet, the right to use the land is flexible. It’s very often shaped by market forces.A good example of why China can be so successful in internet applications, even for those apps used in the United States, such as TikTok, Temu, or Shein.They are Chinese inventions, because it came from internal competition within China. And after this, they become very competitive internationally.
As we have said, one must not treat all the contradictions in a process as being equal but must distinguish between the principal and the secondary contradictions, and pay special attention to grasping the principal one. But, in any given contradiction, whether principal or secondary, should the two contradictory aspects be treated as equal? Again, no. In any contradiction the development of the contradictory aspects is uneven. Sometimes they seem to be in equilibrium, which is however only temporary and relative, while unevenness is basic. Of the two contradictory aspects, one must be principal and the other secondary. The principal aspect is the one playing the leading role in the contradiction. The nature of a thing is determined mainly by the principal aspect of a contradiction, the aspect which has gained the dominant position.
In recent years commentators both at home and abroad have questioned whether the road pursued by China is truly socialist. Some have called our road “Social Capitalism,” others “State Capitalism,” and yet others “Technocratic Capitalism.” These are all completely wrong. We respond that socialism with Chinese characteristics is socialism, by which we mean that despite reform we adhere to the socialist road — our road, our theory, our system, and the goals we set out at the 18th National Party Congress.
All economies are mixed, really, even the DPRK with its Special Economic Zones.
Public ownership is the principal aspect of the Chinese economy, not private ownership.
This shows a fundamental misunderstanding of what special economic zones are in the DPRK. They are not as they are in the PRC, where they are capitalist safehavens. In the DPRK, these are zones for international trade. All industry is still publicly owned.
This just isn’t true, though. The public sector in China is the same as the public sector in most mixed economies: Transportation, parts of agriculture, some electrical and telecomms, etc. It is no different. In fact, China has a larger private sector compared to its public sector than some of these western countries. China’s healthcare system is more privatized than most of these western countries. Your analogy with the rubber vs the ball just doesn’t apply here; China’s primary industries are all privately owned except for certain areas in agriculture. I do very much pay attention to this, because I am waiting with bated breath for it to change.
State-owned enterprises accounted for over 60% of China’s market capitalization in 2019[4] and estimates suggest that they generated about 23-28% of China’s GDP in 2017 and employ between 5% and 16% of the workforce.[5] Ninety-one (91) of these SOEs belong to the 2020 Fortune Global 500 companies.[6] Almost 867,000 enterprises have a degree of state ownership, according to Franklin Allen of Imperial College London.[7]
The DPRK does have limited private property in its Special Economic Zones. See A Capitalist in North Korea: My Seven Years in the Hermit Kingdom. Foreign investment and ownership happens there too, such as from the Emperor Group owning a casino and whatnot, a group based in Hong Kong.
Mining is extensively regulated in the PRC and involves numerous regulatory bodies. The state owns all mineral rights, regardless of the ownership of the land on which the minerals are located. Mining rights can be obtained upon government approval, and payment of mining and prospecting fees.During the Mao Zedong era, mineral exploration and mining was limited to state-owned enterprises and collectively owned enterprises and private exploration of mineral resources was largely prohibited. The industry was opened to private enterprises during the reform and opening up in the 1980s and became increasingly marketized in the 1990s. In the mid-2000s, the Chinese government sought to consolidate the industry due to concerns about underutilization of resources, workplace safety, and environmental harm. During that period, state-owned enterprises purchased smaller privately owned mines. China’s mining industry grew substantially and the period from the early 2000s to 2012 is often referred to as a “golden decade” in the mining industry.
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