Michael
VIP Member
It is normal for foreigners to hold such views about China.Socialism originally meant (and still means) an economic system in which private ownership of the means of production has been abolished.
If you don't call German ordoliberalism and France under dirigisme socialist, you shouldnt call China socialist either.
From a political science perspective, the fundamental distinction between capitalism and socialism lies in the difference between public and private ownership, as well as in the mechanisms of distribution.
China does not fully subscribe to an idealized—or radical—form of socialism, nor would such a system be suitable for us. At the same time, we do not fully endorse a form of capitalism that operates strictly according to the "law of the jungle." Therefore, China at this stage has achieved a model that combines the two, namely socialism with Chinese characteristics.
In China, the terms "within the system" (*tizhi nei*) and "outside the system" (*tizhi wai*) are frequently used to distinguish between two distinct social and economic models. "Within the system" essentially refers to state ownership—a model leaning toward socialism—while "outside the system" refers to the private sector, which leans toward capitalism. Both systems coexist within Chinese society.
The "within the system" economy does not prioritize the pursuit of market profit; rather, its core objectives are national stability and state security. In contrast, the "outside the system" economy aligns with the Western capitalist model, operating according to the principles of a pure market economy.
It is often difficult for foreigners to grasp the full scope of China’s "within the system" economy; they are generally more familiar with the "outside the system" sector. That said, these two models are increasingly interpenetrating and merging. Many state-affiliated enterprises have begun to experiment with operational methods characteristic of the private sector, while some private enterprises have, in turn, begun to integrate into the state-led system.
In short: the "within-the-system" economy serves as the foundation and backbone of the Chinese state, while the "outside-the-system" economy acts as its branches and leaves.


