Government think tank’s defence of China’s economic model points to reluctance to change tack in face of US pressure
- A State Council-affiliated think tank has urged the government to stick with its state-run economic model ahead of key trade war talks with the US, which is demanding changes
- Researchers say evidence suggests there is no need for China to adopt Western-style democracy to become a high-income country
A government research team in Beijing has vigorously defended the country’s state-directed economic model from foreign criticism – in a further sign that China may not give too much ground to US demands for changes to its economic model.
In an 87-page report released on Thursday, the Development Research Centre, a key governmental think tank linked to the State Council, attributed the country’s massive economic progress over the past four decades to its cohesive political governance and an embrace of an open economy.
The researchers also said their study did not support the contention that China needed to become a Western-style democracy to become a high-income country.
The release of the report comes shortly before the US and China are expected to begin detailed negotiations to address US complaints about Chinese business practises following the agreement on a 90-day trade war ceasefire negotiated by Chinese President Xi Jinping and US President Donald Trump on Saturday.
The US is demanding changes to China’s state-run economic model, saying it distorts competition and is biased against foreign firms, although there have been few signs so far that China would be willing to make significant changes.
“Currently, all high-income countries are Western-style democracies. Will China be an exception, or is it doomed to fail?” Chen Changsheng, head of the centre’s macroeconomic research department, said at a launch ceremony for the report at the Peking University.