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Socialism with Chinese Characteristics under China’s shifting

leadership
Over the years China has seen five generations of leaders and leadership, all taking
their time to shape what has become to be known as socialism with Chinese characteristics.
The first generation under Mao brought a Marxist and Soviet inspired revolution with an
authoritarian rule and a strong state. The second generation under Deng Xiaoping brought
reforms and saw the country end its isolation from Mao’s era, third and fourth generation
saw a continuation of the reforms from the second generation, opening up the country to
foreign investment, development, and rapid economic growth. The fifth and ongoing
generation has seen the state strengthening its ties within the market, society and
population, while also expanding state-led development investment on foreign markets to
support the continuation of economic growth.

While the first generation under Mao was inspired by Marxist writing and the Soviet
state, China quickly shifted into a more socialist state under the second generation of Deng
Xiaoping. In the time after Mao’s death, China saw a period of new reforms and opening up
policies, welcoming foreign investment into the Chinese market and an adaptation of the
market economy for economic development (Hengjun, 2014). However, where the West had
loosened their grip on the market and let private investors take charge, China incorporated
state-led growth and state-owned enterprises (SOE) into the market economy. The top-
down authoritarian governmental structure was adopted into the market. Local
governments were implemented and used as a way to help control and manage the SOE,
with the profits generated being distributed between the central and local government,
different from the European model which is mainly relies on tax income (Li, Cui & Lu, 2017).
Under the rule of Deng Xiaoping, China saw a change of focus from national salvation
through revolution to national salvation through peaceful economic development.

During Deng Xiaoping’s rule China also saw reforms in the political spectre. China
became (to a certain extent) democratised. The structure of the Chinese Communist Party
(CCP) was changed to divide the ruling power of the country between multiple
administrative organs, both on national and local level, to avoid a situation where almost all
the ruling power of the country resides with only one person. Public opinion started being
taken into account in government interests, while at the same time influencing public
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opinion through state propaganda and state nationalism. China saw a shift from trying to
change the system, to trying to maintain it, with a strong state capable of producing and
delivering the goods necessary to produce development (Liu & Dunford, 2016).

The period of the third and fourth generation of leaders have mostly been a period of
continuation of Deng Xiaoping’s ‘peaceful rise’ of China, with furthering economic growth
and development. In 2001 China joined the WTO, and in the period between 2001 and 2008
Chinas trade and outwards foreign direct investment (FDI) grew, leading China to adopt a
state-led export-oriented development model (Liu & Dunford, 2016). China saw itself
becoming the second largest economy in the world, and until 2015, China was the world’s
fastest growing major economy, with an average growth rate of 6 percent over the course of
30 years (WB, 2019). While Chinese investment abroad also increased in this period, they did
so mostly by relying on their own networks and resources, though being encouraged by the
presidents (Hung, 2016). Relationship between local governments and the national
government grew close during this period, cooperating on development and economic
growth also in the areas far from Beijing, allowing Beijing greater control also in distant
regions (Li, Cui, & Lu, 2017).

When current Chinese president Xi Jinping came to power, as the fifth generation of
Chinese leaders, China saw a shift again in its previously peaceful rise to a more muscular
socialist rule. With the emergence of China as a global economic power, an increasing sense
of national pride has grown, together with China on the global stage. Chinese FDI and
Chinese state-led investment has increased, now more muscular in its relations with foreign
governments and corporations (Gill, 2017). Chinese corporations were no longer only
encouraged to invest abroad, but also backed by the state under increased state control
(Hung, 2016).

Exactly what socialism with Chinese characteristics means, is difficult to say. Over the
years China has seen multiple approached to the socialist agenda of the country. Mao’s
communist revolution built a strong nation state, that allowed for a strong nation state
under an authoritarian rule to continue under a new socialist agenda. Shifting from a
peaceful rise to a global economic power, China has now seen itself take on a role as a world
stage leader with state-led investments both domestically and internationally, all while
under control and surveillance of the Chinese government.
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References
Gill, B. (2017). China’s future under Xi Jinping: challenges ahead. Political Science, 69(1), ss. 1-15.
doi:10.1080/00323187.2017.1313713

Hengjun, J. (2014, August 20). China's Three Leaders: the Revolutionary, the Reformer, and the
Innovator. The Diplomat. Hentet fra https://thediplomat.com/2014/08/chinas-three-leaders-
the-revolutionary-the-reformer-and-the-innovator/
Hung, W. (2016). One Belt One Road, China and Europe: Economic Strategy and Pragmatic
Economies. I T. W. Lim, H. H. Chan, K. H. Tseng, & W. X. Lim, China's One Belt One Road
Initiative (ss. 245-268). Imperial College Press.

Li, M. H., Cui, L., & Lu, J. (2017). Varieties in State Capitalism: Outward FDI Strategies of Central and
Local State-Owned Enterprises from Emerging Economy Countries. I A. Cuervo-Cazurra,
State-Owned Multinationals: Governments in Global Business (ss. 175-210). Springer.

Liu, W., & Dunford, M. (2016). Inclusive globalization: unpacking China's Belt and Road Initiative.
Area Development and Policy, 1(3), ss. 323-340. doi:10.1080/23792949.2016.1232598

The World Bank. (2019). GDP growth (annual %). Hentet fra The World Bank:
https://data.worldbank.org/indicator/ny.gdp.mktp.kd.zg?fbclid=IwAR1X2JlWAwc1Mf51aUK6
Uchrjmesn7wPG6veVYEktLjimAWtfSblwUjqbTU