2 August 2024

Why the China model is failing

Chris Lee

The authoritarian China model under President Xi Jinping’s leadership is facing increasing failure. Its most critical flaw lies in the unconstrained power of the ruling Chinese Communist Party (CCP), arbitrarily intervening in market and social activities for the interest of itself or its leaders without robust mechanisms for accountability and self-correction.

The China model is thought to have contributed to the country’s ‘economic miracle’ in more than four decades to the early 2010s. From 1978 to 2012, the Chinese economy grew at an average annual rate of 9.4 percent, rising from low-income status to become the world’s second largest. For many developing countries, this growth symbolises the success of the CCP’s authoritarianism, which they seek to emulate.

The China model, in effect, is an institutional system that combines extensive state control and ownership of resources with limited free-market activity, all led by the authoritarian CCP. A main characteristic is the CCP’s ability to mobilise organisational resources efficiently and take the actions needed to reach a specific single goal. As Xi said at a 2022 CCP Central Committee meeting, it is about ‘leveraging the notable strength of China’s socialist system in pooling resources and efforts for major undertakings’.

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