Capitalism and Modernization in China

Abstract

Due to its late start and the impact of outside influences, modernization in China has always been inseparably tied to capitalism. During the early stages of modernization, the primary issue was how feudal forces could identify with and accept capitalism; in later stages, the question has been how socialism can exploit capitalism. The manner in which the relationship with capitalism has been handled has had a great impact on the path that China's modernization has taken. It was correct to emulate the Western model as China first set out on the course of modernization; however, at that time, China was not equipped to accept capitalism. The failed application of the Western model does not demonstrate that learning from the West was incorrect; and China's shift from the Western model to the Soviet model does not signify that severing ties with capitalism was a necessary choice. The reason why the Soviet model led to setbacks was because the relationship with capitalism was not correctly handled. China's modernization is irrevocably linked to capitalism, but this does not signify that the capitalist path is the only option. It was historically inevitable that China would follow the socialist path in pursuing modernization, yet it is also necessary for China to learn how to exploit capitalism in the course of its socialist modernization.