What Do People Think About The Rise Of China? What Misconceptions do We Have About The Economy Of China?

People around the world, especially in the USA, have immense misconceptions about China’s economy. Moreover, the global citizens remain stunned by the economic growth and rise of China. 

However, in reality, they lack a basic understanding of the growth of China and its economy. People often think that the economy of China is as centralized as its political order.  

However, in reality, the case remains much different from the general perception. Thus, we at Big Jar have attempted to break down and conduct a proper analysis of the conversation between Lex Fridman and Keyu Jin on the Lex Fridman Podcast. 

Keyu Jin is an economist at the London School of Economics who has expertise in subjects like China’s Economy, international macroeconomics, Global Trade imbalances, and financial policies. Moreover, Jin also wrote a book known as the “New China Play Book”. 

Moreover, the book gained massive popularity around the world.  

This article seeks to break down these conversations to provide people with a more rational communication.  

What Was The Conversation About? 

Moreover, several things were discussed on the podcast about the rise of China. This included the role of the Chinese Mayors at the local level. Deng Xiaoping and several others brought in the reforms. However, here are some of the main and important parts of the conversation. 

1. What Is The Biggest Misconception Among The People Of The USA Regarding The Economy Of China And The Rise OF China

Moreover, Lex Fridman, the Host of the Podcast, started the conversation with one question. He asked Jin what the “biggest misunderstanding was among the people of the USA about China’s economy?” 

Keyu Jin stated that several people in the USA think that the Economy of China remains very centralized. She pointed out that most people in the USA believe a handful of people run the Chinese economy.  

However, in reality, the situation remains completely different. She referred to the system as “Mayor Economy”. Moreover, she meant that the local authorities, like the Mayors, play a very important role in China’s Economy. 

Moreover, the local authorities play an important role in the economy. However, they also play a crucial role in driving technological innovations. 

Keyu Jin also stated that the economy is more “decentralized than the USA”. 

2. What Is The Relationship Between Chinese People And The Authority? 

Keyu Jin also stated that people all over the world have a misconception about the ‘relationship between the Chinese People and the authority”. Moreover, she went on saying that most people all over the world think that the Chinese People just blindly submit to the authorities.  

However, Keyu Jin emphasized that the Chinese Citizens have a nuanced relationship with the people in authority. Moreover, this applies everywhere. She also had put up some examples while explaining the ‘nuanced relation between the authorities and the people”. 

Keyu Jin referred to the relation between “students and their teachers” and “bosses and the Chinese Government”.  

Thus, she also stated that the authorities show traits of ‘paternalism’. Therefore, the authorities often feel that they are actually responsible for the general public.  

But Keyu Jin also pointed out that people are allowed to have a certain amount of differences with the authorities in China. Moreover, Keyu Jin stated that “it has been written in the contract for thousands of years.” In exchange for some difference, the Chinese people are given “stability, security, and hopefully peace, and prosperity.”  

Lex asked Jin that in the West, a little bit of being the ‘rebel’ is allowed, where the freedom of the individual is always encouraged. Jin said that the same applies to China.  

Jin pointed out that the ‘radical dynamic entrepreneurship’ would not have existed without that. 

3. What Were The Different Reforms That Happened Under Deng Xiaoping, And How Did His Contributions Lead To The Rise Of China? 

People from all over the world praise the contributions of Deng Xiaoping to the Chinese economy.  

Thus, the host of the show asked Kiu Jin about Deng Xiaoping’s contributions to the Chinese economy.  

Keyu Jin replied to this while calling Deng Xiaoping one of the most pragmatic leaders of his time. She also went on saying that the generation of his father would not have seen that amount of “prosperity,  peace, and opportunity” without the contributions of Deng Xiaoping. 

She briefed the audience about the 1970s, when Deng Xiaoping came up with the “open up and reform mandate”.  

However, she pointed out the obstacles that Deng Xiaoping had faced during that time. Keu Jin talked about the political barriers and the incentive compatibility problems on the ground.  

Moreover, Deng Xiaoping also faced issues with the local authorities. 

However, Deng Xiaoping was able to break tradition and conventions and come up with a completely new way of thinking. 

Keyu Jin stated that the people of that generation told her that they were shocked when they heard the government was going to focus on the economy. 

Moreover, a large chunk of the population in the 70s in China was convinced that the government would only talk about the “ideology” and “Politics”.  

 However, the reforms by Deng Xiaoping led the Government to focus intensely on the country. 

What Is The Big Jar Take On The Rise Of China? 

We at Big Jar believe that, moreover, the entire world lacks an idea about the internal situation of China. People fell prey to the Western propaganda in several cases. The world, moreover, has always seen China through the capitalist spectacles, which have always vilified communism. 

People have often considered China similar to the mechanism of the Soviet Union. However, the reality is that China’s political and economic system remains unique.  

Thus, the Chinese system of governance acts very differently from how the world perceives it to function. 

But people can not generalize China holistically. Moreover, the situation within the problematic regions like Tebet, Xinxiang, and others remained tense.  

The economic system, as well as the political systems, possess harsher consequences for the people in general. 

The world continues to praise the Chinese Growth and keep comparing countries like India to China. 

However, the democratized systems have a more decentralized mechanism, unlike in China. This leads to chaos and a broader issue.  

Howeve, the Chinese system curtails the freedom of speech for the people. 

Frequently Asked Questions (FAQs) 

Here are the answers to some of the most commonly asked questions about the Rise of China and the Chinese economy.