An influential Chinese pro-market economist has warned of the dangers of “state capitalism”, joining a chorus of liberals who say state intrusion is eroding confidence in the country’s economic future.
Wu Jinglian, who turns 89 this month, made the remarks in a video message delivered at a seminar in Beijing last week, hosted by liberal private think tank the Hongfan Institute of Legal and Economic Studies.
He said pursuing state control of the economy could easily lead to “crony capitalism” and bring back memories of the 1950s, when private assets were forced or coerced into state hands – a process that would eventually lead to a failed Soviet-style command economy.
“It’s inconsistent with our reforms. We have made it clear that we will pursue a market economy … rather than state control of the national economy,” Wu said in the 20-minute pre-recorded video message.
Wu’s comments come amid growing concerns both within China and overseas about state intervention in the economy and Beijing’s commitment to economic liberalisation.
