# Deng Xiaoping’s Economic Paradigm

- Link: https://www.thailand-business-news.com/china/115408-deng-xiaopings-economic-paradigm
- Published: 2023-12-03T18:34:30+07:00
- Author: East Asia Forum

**Deng Xiaoping sought advice from Japan and Singapore for economic reforms, but
Xi Jinping’s policies have caused economic problems for China.**

## China’s economic evolution from Deng’s vision to Xi’s divergence

Richard Katz of the Carnegie Council for Ethics in International Affairs discusses
Deng Xiaoping’s approach to creating ‘socialism with Japanese and Singaporean characteristics’
and how it led to China’s economic miracle. He also highlights the economic woes
caused by Xi Jinping’s abandonment of this paradigm, leading to China’s current 
economic challenges.

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## Lessons from Japan

Katz explains how Deng Xiaoping sought advice from Japan and Singapore in the 1970s,
drawing from their success stories to reform China’s economy. This included adopting
a Japan-style industrial policy and welcoming foreign companies to produce and export
their products in China.

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## Reversal under Xi Jinping

The article outlines Xi Jinping’s shift towards favoring state-owned enterprises(
SOEs) over private companies and foreign technology firms, as well as the impact
of this reversal on economic growth, innovation, and foreign investment in China.

## Economic Challenges

Katz concludes by highlighting how China’s economic growth has been impacted by 
declining productivity, financial turmoil, and the potential consequences of sacrificing
economic growth for political goals, offering insights into the complex relationship
between economic policy and political stability in China.
**Read original article
here :** : [China’s economic evolution from Deng’s vision to Xi’s divergence](https://www.eastasiaforum.org/2023/11/30/chinas-economic-evolution-from-dengs-vision-to-xis-divergence/?utm_source=rss&utm_medium=rss&utm_campaign=chinas-economic-evolution-from-dengs-vision-to-xis-divergence&rand=86372)