Richard Wolff on China's mixture of private and state owned enterprises

Thanks, professor WOLFF. Yes, exactly explained of HOW the Chinese people and China has become one of the most leading countries of the world with booming economy and prosperity since its reform in 1979.

America ruined Russia's transition to liberal democracy. Fast pace progression led to a rise in the criminal element which poisoned everything making Russia, today, an actual mafia state with the head boss being the richest man in the world, all stolen from the Russian economy and it's people.

Govt has NOTHING to do with economy ; only is so far as to protect workers through democratic laws instituted by We The People. Govt's job is to implement laws made by we the people full stop.

Alright, which intern is getting their revenge on Richard by choosing these thumbnails?!?

Holy shit, the thumbnail for this video 🤣

So did Yugoslavia! Time to catch up!

I guess this is why their high speed rail tickets are so affordable to common folks as compared to European and the Japaneses. I recon this is the plus side of the state own enterprises that can bring benefits to the common folks. What do you think?

Prof., can you give more detail?

Jesus, the thumbnail. This might be the best one so far. Lol

that thumbnail tho

Within modern economy are monopolistic, mega-corporations, who do not compete. These firms, in general INTERNATIONALS generate easy profit for the leading capitalist elites and are associated with tax-evasion and wage-suppression. Within China will the profits be earned by the state, that will use the money for common interests (f.e. Apple has 200billion dollar accumulated and does not know what to doe with it) So, the nationalsocialist system is within the high technological society fundamental better organized than the socialcapitalist system.

IMO There're two important things to note:
1. A good market mechanism (asset pricing in particular) during econ transition from publicly owned to privately owned. I.e. the price at which a pub enterprise is acquired must be a fair market one. This was what the Russian lack of. So a number of monopolists, super-riches and even "lord of war" were created by acquiring undervalued assets. In contrast the U.K. sold many pub assets (at very high prices) in the 80s but didn't see much problem - a well organized and monitored market mechanism played an important role. Chinese case was similar to the Russian one in the beginning until early 2000s when market mech has largely improved. Even today, in china there're crocodiles and sharks looking for buying undervalued pub assets in the name of market, reform and professionalism - of course with the help from corrupted officials from the inside. But it's already too difficult for them to do. And because goods-and-services market competition is fierce, operating a company is not that profitable after all.
2. Information technology. In orthodox theories, public sector is always associated inefficient and not transparent enough. But with the progress and implementation of IT, these aren't the case anymore. The Chinese use IT to monitor the public sector, and are able to outline who are the outperformed, the incompetent and the corrupted in an effective way. This is a key factor that makes the Chinese case special.

Yugoslavia had a system like China. They allowed ownership of businesses to individuals, and had a export market also. Back in 1980s, you had Yugo cars in the USA, and furniture from Yugoslavia as well.

If you want to understand relationship between private and national owned company, the best example is huawei. When I was graduate from school 2006, national owned company like ZTE, they are more attractive to us. But national own business have their problem, they can't win in the competition with private company. Even governor continuously support them by subsidy or let CMCC give order. But if you check the market sharing of CMCC you would find out, those aids coming from gov only could make them alive. So finally you see a lot of engineers from national owned company are not satisfied their low salary and jumped to huawei. So it's like training school for huawei. The leadership only means they must to do some pioneer field works which is less profit.

I want to add that the transition of mostly state owned corporations to privately owned ones also happened in Taiwan, and without the kind of limits set up by the Communist Party in mainland China. It has brought massive corruption and IMO contributed to the serious decline in the competitiveness of Taiwan's economy.

They actually tried to privatize some state firms quickly in the 80's, but it resulted in high unemployment, lost of benefits, and most importantly massive lost of state assets due to corruption. All these became the seeds of unrest in 1989.

Who in China is determining the rate and limit of private enterprise? And is this the same entity that is placing the state in pole position?

70% of economic activity was found to be from the private sector in a study done in 2009 of 430,000 Chinese companies.

After the "shock" theraphy, all you got is SHOCK.

capitalism attacks any system not compatible with capitalism because any system is better than capitalism.

i think this idea are not exclusive for china/soviet , Indonesia have same principle but on important sector like energy. The different are on implementation, China state own enterprise can create top 4 biggest bank in the world where most Indonesia state own suffers from loss and nearest bankrupt.

Yeah how is that working now with evergrande collapsing, not very good I suppose.