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Can China's economic policy be seen as neo-mercantilist?

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China's trade policy, and economic policy more broadly, not only could be but has in fact been characterized as neo-mercantilist. As one economic analyst puts it, the economic regime in China has all the hallmarks of a mercantilist system. Its centralized government "controls capital movements, discourages imports and encourages exports." Besides the structural differences between the Chinese government and, say, the United States, one reason the Chinese are able to pursue this policy is because they have a massive labor force that can produce goods more efficiently. Combined with economic policies, this means that Chinese-produced goods are cheap, and therefore flood global markets. In this sense, Chinese regulation of the economy very much leads to a neo-mercantilist system.

At the same time, unlike the European mercantilist systems of the early modern...

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