Marketization and Limited Government Reforms in the Xi Jinping Political Era: A Policy Analysis

Abstract

The influence of China in the world is undebatable, and it has been increasing over time. Because of the one-party political system and the heavy-handed role of China’s government in the Chinese economy, it is essential to understand government policies in China. The objective of this research is to provide more insight into these policies in the epoch of marketization and limited government reforms in China and to anticipate possible outcomes resulting from these policies. The focus of this paper will be the Xi Jinping era, which started in 2012 and could endure into the 2020s given his latest political victory at the 19th CPC National Congress. I will also provide a brief policy assessment of the period from 1978 to 2012, the chapter of Chinese marketization and limited government reforms before the Xi Jinping era, which will help me to more effectively analyze of the historical background of Xi’s policies and offer more specific policy recommendations for Xi’s political era. My approach is based on the theoretical foundations of praxeology, which I will apply using the theories of both Austrian School economics and the Public Choice School. I conclude that the Xi Jinping political era poses some risks to the marketization of China and the limitation of government’s role in society, as some policies violate the principles of private property rights and endanger prosperity in China.