Academics specializing in China and politicians from the United States and some developed Western counties, are turning the topic of "State Capitalism" into a sensation, claiming some countries with State Capitalism lack creditability and transparency which challenges the West economically and strategically. But their arguments do not make sense, says an article in People's Daily. Excerpts:

China is often regarded as the embodiment of State Capitalism.

China has developed and has been committed to the path of socialism with Chinese characteristics. The vitality of China's development model lies in its inclusiveness, pragmatism and flexibility. China has never implemented capitalism, for its path is fundamentally different from capitalism in various forms.

China has attached long-term significance to the peace and development of the people and has closely connected its development with the world. China appeals for win-win collaborations and dedicates itself to the robust, sustainable and balanced recovery of the global economy. China is also doing its best to help other developing countries strengthen their ability to have independent development. This is completely different from the selfishness and self-conceit demonstrated in the international political arena by some Western countries. 

In contrast, the US has been barefaced in implementing State Capitalism. Taxpayer money is used to subsidize special designated industries, such as financial institutions, the automobile industry and fund endless qualitative ease policies. It also pushes for the appreciation of currencies of other countries. The State Capitalism of the US brazenly uses protectionism to stampede foreign enterprises' investment and development at home just for its ideological prejudice, regardless of capabilities.

The US should realize its biggest challenge is itself. The US has long called China a manipulator of the exchange rate and attributes its trade deficit to this. The fact is, since 2005, the yuan has appreciated more than 30 percent against the US dollar. But the US' trade deficit has still grown bigger. The US should reflect on itself and not find fault in other countries.

The US labels emerging economies as countries practicing State Capitalism to shift domestic pressures from its own administration and isolate these countries from its alliances. This label also gives US politicians excuses to take protective trade measures over enterprises from these countries.  

This is not the first time China's development path has been viewed with suspicion by the West since its reform and opening-up more than 30 years ago. But the suspicion has not prevented China from becoming the world's fastest developing country during this period. Every nation has the freedom and right to explore ways to develop that fits their national conditions. For a large, fast developing country like China, its development path must be flexible and inclusive to adapt to the changing national conditions of the country. China's path cannot be the same as in the West, whose developing environment and national conditions are obviously different from China.

China and the other emerging economies should not be disturbed by the criticism and must continue on their development paths, which can only be validated by being put into action.