China's Economy: Impact of Excess Capacity on Governance Model
Tuesday, 2 April 2024, 12:23
The Role of Excess Capacity in China's Economy
Excess capacity in China is not a flaw but a deliberate aspect designed to align with the country's governance model. The political logic behind this phenomenon plays a crucial role in driving economic policies and strategies.
Understanding China's Governance Model
In the Chinese context, excess capacity is intricately linked to the centralized governance structure, where efficiency may not always be the primary goal.
- Centralized Control: State intervention often prioritizes political stability over immediate economic efficiency.
- Long-Term Goals: Excess capacity serves strategic objectives, supporting industrial growth and employment stability.
China's unique approach to managing excess capacity reflects a broader socio-political strategy rather than a purely economic one.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.