The spectacle of a communist regime trying to jack up a casino-like capitalist market is just one of the many contradictions that have been accumulating in almost every corner of China’s economy and politics.
Pranab Bardhan, Project Syndicate, July 16, 2015

he drop in the Shanghai and Shenzhen stock exchanges is testing the Chinese Communist Party (CCP). While the markets were rising, the paradox of a Communist party presiding over capitalist development only seemed to matter to academics and traditional Marxists. Now that the CCP is realizing that Chinese stock prices will not continue to rise forever, it is attempting to control the market correction by any means necessary. The CCP has stopped new initial public offerings as well as curbed a large amount of trading. Furthermore, the central bank is working with the Chinese Securities Finance Corporation to stabilize the market by convincing investors to buy shares. However, the difference between China and other capitalist economies is that China’s government has a much more powerful authority. For example, Chinese brokers can be subjected to official punishment if they advise clients to sell their shares. Overall, inciting financial instability can lead to a serious offense. Chinese officials really want a “capitalist stock market without the possibility of large losses that can shake confidence in the CCP’s credibility and control. But that is a market that no one has yet invented.” The CCP is a contradiction in itself. What was once a revolutionary party of peasants is now controlled by the elite.

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Capitalism and Communism: Inside ‘New China’ || MSNBC

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