World-System (1950-2010) How Does the Economy of China Work?
May 15, 2025 Trump returns to the U.S. after 2-day trip to China - NPR Continuing Geopolitical tensions between China and the US suggest that the US does not understand how China's System works. Concepts from ECON101 ( Socialism , Communism , Command Economy , etc.) make it difficult for Capitalist Politicians to understand what they are dealing with ( President Trump seems to like dealing with Authoritarian Leaders because it feels like dealing with the head of a large Conglomerate --until it doesn't). In this post, I'll take the perspective of Systems Theory which is free of prior misconceptions. The Economy of China is a Malthusian Economy that requires Authoritarian control over birth rates (see the Two Child Policy ) to keep the labor force employed without risking high unemployment. The economy also requires control over energy use and Globalization to manage unemployment. Human Development is not a priority in Malthusian Economies. ChatGPT characterizes ...