Even the private sector has to meet planning targets set by the Congress.
Could you elaborate on this please? I thought i heard a while ago that they had declared completing the transition from a command economy to a socialist free-market.
China has 5 year plans. However the 5 year plans are different than, say, the Soviet Union. In the USSR the plan gave exact quotas for what companies should produce, at what cost, at what price do they sell it, etc. In China the economy follows market principles. So the plan doesnt specify all of that, it just lays out the objectives the companies and economy must achieve. All companies, including private companies, must follow the plan. The only exception is private companies in the Special Administrative Zones (Hong Kong and Macao) and the Special Economic Zones. There its less regulated so they dont have to follow the plan. But in the rest of China they do.
The Party is very involved with even private companies, getting seats on boards, etc. As well, when China publishes 5 year plans, these apply to the country, including private companies. Private firms often jump into working within 5 year plan industries (can be vague shit like “invest more in green energy”). There’s likely a level of coercion where the state gets a lot more interested in your business dealings when you are going against planning targets.
Could you elaborate on this please? I thought i heard a while ago that they had declared completing the transition from a command economy to a socialist free-market.
China has 5 year plans. However the 5 year plans are different than, say, the Soviet Union. In the USSR the plan gave exact quotas for what companies should produce, at what cost, at what price do they sell it, etc. In China the economy follows market principles. So the plan doesnt specify all of that, it just lays out the objectives the companies and economy must achieve. All companies, including private companies, must follow the plan. The only exception is private companies in the Special Administrative Zones (Hong Kong and Macao) and the Special Economic Zones. There its less regulated so they dont have to follow the plan. But in the rest of China they do.
Here is a Western business source: https://www.theguardian.com/world/2019/jul/25/china-business-xi-jinping-communist-party-state-private-enterprise-huawei
The Party is very involved with even private companies, getting seats on boards, etc. As well, when China publishes 5 year plans, these apply to the country, including private companies. Private firms often jump into working within 5 year plan industries (can be vague shit like “invest more in green energy”). There’s likely a level of coercion where the state gets a lot more interested in your business dealings when you are going against planning targets.