Discuss the ‘international political economy’ (IPE) shown in the ongoing US-China trade ‘war.’
The Role of the Government in Economy: A Historical Development
China has been a socialist country since 1949, and, for nearly all of that time, the government has played a predominant role in the economy.
The Chinese Communist Party reserves the right to make broad decisions on economic priorities and policies, but the government apparatus headed by the State Council assumes the major burden of running the economy.
There are three types of economic activity in China: those stipulated by mandatory planning, those done according to indicative planning (in which central planning of economic outcomes is indirectly implemented), and those governed by market forces.