China's Experiment with the financial system

The pandemic put the spotlight on the wealth inequality in the capitalist world of the 21st century. It showed the lacuna deepen further in a crisis. In India and America, the mega-rich maintained a play of positions on the Forbes list. This was when the majority in both the countries were pushed to grave situations with job losses, poverty, and compelled to depend on government support.

China had leaned towards ‘state’ capitalism in the late 20th century. It has now realized the ills and acted on them. Xi Jinping is curtailing the expanding ‘state’ capitalism. This is after the contributions provided by it to the growth of China in 40 years. To reduce inequality, the capitalist world can learn from China’s experiments, as a petri dish by observation.

‘Common Prosperity’ a campaign by Xi, is purging the excesses of the capitalist system in China. This includes helping, struggling working-class with housing prices, small businesses battling tech monopolies, and controlling power amassed by individuals and companies.

Though the Chinese response looks quick and convincing. The capitalist world should watch with consideration and scrutiny. It also includes the world of crypto. China has banned cryptocurrency trading, while the conversation is still ongoing here. Xi Jinping shows suspicions on the prospects of it being misused.

President Joe Biden signaled a move against monopoly power by signing an executive order. This is welcomed as a start. However, when dealing with monopolies, countries built on capitalism need to be cautious not to curb capitalism’s rewarding and competitive nature. As mentioned by President Biden “Capitalism without competition isn’t capitalism; it’s exploitation”

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