Some think that the Chinese model is a result of Washington Consensus. I would argue it is a combination of Washington Consensus and socialist institutions especially social control institutions.

Dear Feng, thank you for taking the time to write.

The thinking outside the box in this case is thinking in terms of equality and freedom, away from the inside the box thinking such as the washington consensus so as to uncover situations that you can not see if inside the box.

We need to think in the following terms to find the implications of this question in terms of similarities and differences:

What was the structure of the chinese model before the fall of the soviet bloc/red socialism in terms of equality and freedom?

What is the structure of the chinese economy after the fall of the soviet bloc/red socialism in terms of equality and freedom?

What was and is the structure of the USA economy before and after the fall of the soviet bloc/red socialism in terms of equality and freedom?

Respectfully yours;

Lucio

The American and Chinese economies share some liberal principles that govern them, even if China has developed its own development model, which is based on Chinese values, especially Confucian ones. Therefore, the Chinese talk about a market economy, but with Chinese characteristics, and about a policy of openness, but calculated and gradual. The American economic model is based on absolute freedom and non-interference of the state in financial and economic affairs, while in China, despite the recorded openness, the state still has the ability to control the markets, and there is a role in rice for what is known as state-owned companies, and states have the right to interfere in the activity of private companies If it feels the possibility of harming state policy, as happened with the Alibaba e-commerce company, And the Ant Company and others, freedom is restricted in the Chinese economy, which may harm competitiveness and the emergence of giant companies, and on the other hand, excessive freedom in the American economy has always caused successive crises, especially in financial markets, such as the 1929 crisis, the 2008 mortgage crisis, and the recent bankruptcy of Silicon Valley Bank, China is on its way to developing a full-fledged model of its own, and is trying to promote it globally because it succeeded in moving a country from a third world country to become, in a short time, the second strongest economy in the world, while the successive financial crises in the US economy, which spread to various parts of the world, have questioned the credibility of Liberal rules, and their ability to run the global economy.

Abdelkader, good day, thank you for taking the time to write.

Your comment is not framed just on economic equality and freedom as it applies to both economic structures of interest here, the Chinese economy model and the USA economy model.

However all you said there about the Chinese model after the fall of red socialism in 1991 and the USA model and their working is right.

Could you please place those ideas in terms of economic equality and economic freedom as it applies to both models? Then you may be able to provide a direct answer to the question here: In terms of equality and freedom, what are the similarities and the differences between the Chinese economy model and the USA economy model?

The similarities in terms of equality and freedom are…

The differences in terms of equality and freedom are:

Note:

To be able to see similarities and differences is better to state each model in terms of equality and freedom first and then compare them or clash them.

In many areas of social significance, both the US and China are not number one. Far from it, the two often find themselves way down the list when compared to other countries. It is critical that we not lose sight of the fact that in many areas of life – from governance to healthcare to crime to the environment – the two countries have a lot of catching up to do.

Happiness is not the be all end all of life, but it’s not irrelevant either. And on this score the US and China do not fare particularly well, ranking 18 and 94, respectively, far behind Finland. The US ranks higher than China on metrics of democracy and freedom, but even there the US is far from preeminent, something we’ve witnessed in vivid terms the last few years.

The Gini coefficient, one of the most widely used metrics of inequality, shows that in 2019 the United States (0.481) and China (0.465) both still have highly unequal income distributions in absolute terms and relative to other countries.

Inequality was far lower in China in the late 1970s, but then soared following the launch of the “reform and opening” policies. Marketization succeeded in delivering decades of high overall growth, but a number of factors – among them corruption, credit policies favoring a shift of wealth from households to companies, privatization of SOEs, and an insufficient availability of welfare services – have raised inequality far higher than would otherwise be the case. It likely resulted in the share of public wealth (as a portion of national wealth) to drop from about 70 percent in 1978 to 35 percent by 2015.

Trends in the United States are similarly concerning. The bottom 50 percent of wage earners experienced a collapse in their share of the nation’s wealth between 1978 and 2015, from 20 percent to 12 percent of total income, while the top one-percent’s income share rose from 11 percent to 20 percent. Inequality was exacerbated by educational and wage policy failures, resulting in insufficient support for the underprivileged. In addition to this, as in China, the United States lacks a well-funded welfare state when compared with other advanced industrialized economies.

Ref/

https://wid.world/data/

My best wishes Lucio Muñoz good question as almost all of yours 👍

I agree with all you said and the statistics you provide, but this is only indirectly related to the question. If you read the context on which this question is based you could also put it as non-democratic capitalism and democratic capitalism. However those who supply those statistics do not know how to state those models in simple terms, just equality and freedom. Most people know how to represent a market in supply and demand terms, but stating those same markets in terms of equality and freedom is not well know yet, and this leads to a lost of details that allow you to see the strenghs and weaknesses of both models, which if they knew they can exploit in a cold war or warm war fashion more efficiently. There is way more about markets beside the traditional market thinking of Adam Smith/raw capitalism, and this knowledge allows you to look at the same market issues withing and between countries like China and the USA, which have different structure in terms of equality and freedom. Supposed China has model D based it is a dictatorship based capitalism and the USA has model L as it is based on liberal capitalism, if you can state D and L in terms of equality and freedom, then you can compare them in clash type fashion as D.L

Have you ever seen the following papers key to arriving to the answer to this question?

Articles on markets under EQUALITY AND FREEDOM thinking

Muñoz, Lucio, 2021. Sustainability thoughts 151: An overview of market variability based on dominant component equality and freedom: What is the structure of a true perfect market?, In: International Journal of Business Management and Economic Review(IJBMER), Volume 4, Issue 5, September-October, ISSN 2581-4664, India

https://www.researchgate.net/publication/354831075_Sustainability_thoughts_151_An_overview_of_market_variability_based_on_dominant_component_equality_and_freedom_What_is_the_structure_of_a_true_perfect_market

Muñoz, Lucio, 2021. Sustainability thoughts 152: How to highlight the four market structures that dominant component markets can have in terms of equality and freedom variability when under externality neutrality assumptions and without them?, In: CEBEM-REDESMA Boletin, Año 15, Nº 11, November, La Paz, Bolivia

https://www.researchgate.net/publication/356841470_Sustainability_thoughts_152_How_to_highlight_the_four_market_structures_that_dominant_component_markets_can_have_in_terms_of_equality_and_freedom_variability_when_under_externality_neutrality_assumpti?_tp=eyJjb250ZXh0Ijp7ImZpcnN0UGFnZSI6ImhvbWUiLCJwYWdlIjoic2VhcmNoIiwicG9zaXRpb24iOiJwYWdlSGVhZGVyIn19