Influence of Western Economic Thought on Chinese Economic Policy: Latter Half of the 20th – Early 21st Century

Abstract

The article undertakes an examination of the trajectory of China's economic transformation and its distinctive approach characterized as socialism with Chinese characteristics, with a specific emphasis on the influence exerted by Western economic thought. The study delves into China's economic policy evolution from the latter 20th century to the early 21st century.The key theories and concepts of the Western economic school are identified, some of which have been integrated into contemporary Chinese economic thought and state policies, ranging from the concept of "socialism with Chinese characteristics" to Xi Jinping's "socialist economic thought". The author delves into the impact of Marxist economic theory on industrialization and the establishment of socialism between 1953 and 1976. The article also examines specific tenets of modernization theory, neoclassical economic theory, as well as the economic doctrines of the Austrian and Chicago schools, institutionalism, and theories concerning foreign direct investment. These elements, which influenced market-oriented reforms and the development of socialism with Chinese characteristics from 1978 to 2012, are outlined.Moreover, the article highlights the Western economic ideas that contributed to the cultivation of an innovative economy and the construction of "socialism with Chinese characteristics in the new era" since 2012. Additionally, the article provides an overview of contemporary Chinese economic theory, recognized by the President of the People's Republic of China as "socialism with Chinese characteristics in the new era" and identified by Chinese scholars as Xi Jinping's "socialist economic thought".The primary objective of this article is to analyze the progression of Chinese economic science and politics from the latter half of the 20th century to the early 21st century. The analytical pursuit is facilitated through the utilization of historical and general scientific research methodologies, encompassing synthesis and analysis, generalization, and the application of a systematic approach.