Capitalism, Crises, and Constraints in China, 1990s–2000s

How do states navigate economic crises? How do crises affect state capitalist systems? This article explores how the government of the People’s Republic of China (PRC) understood and responded to the 1997 Asian Financial Crisis and the 2007–2008 Global Financial Crisis. It argues that Chinese policymakers and economic decision makers were often constrained by global political factors and structures, for example, concerns over government legitimacy and domestic political support, World Trade Organization (WTO) membership, and global demand for Chinese exports. We show that the PRC had to adjust its economic policies and, consequently, its state capitalist model in response to these crises to secure its political and economic interests. This research traces the agency behind the rise of the Chinese economy and its intersection with crises, state capitalism, and global economic structural forces.

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Publication Details

Journal
Modern China
Published
2026-10-04
DOI
https://doi.org/10.1177/00977004261469863
Primary Topic
China's Socioeconomic Reforms and Governance
Type
article
Field-Weighted Citation Impact
0.00
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article

Capitalism, Crises, and Constraints in China, 1990s–2000s

Federico Pachetti, James Lin
Modern China
China's Socioeconomic Reforms and Governance
article

Capitalism, Crises, and Constraints in China, 1990s–2000s

Federico Pachetti, James Lin
article en

Abstract

How do states navigate economic crises? How do crises affect state capitalist systems? This article explores how the government of the People’s Republic of China (PRC) understood and responded to the 1997 Asian Financial Crisis and the 2007–2008 Global Financial Crisis. It argues that Chinese policymakers and economic decision makers were often constrained by global political factors and structures, for example, concerns over government legitimacy and domestic political support, World Trade Organization (WTO) membership, and global demand for Chinese exports. We show that the PRC had to adjust its economic policies and, consequently, its state capitalist model in response to these crises to secure its political and economic interests. This research traces the agency behind the rise of the Chinese economy and its intersection with crises, state capitalism, and global economic structural forces.

Modern China
Corvinus University of Budapest (HU), University of Washington (US)
Openalex Percentile: Top 3%
China's Socioeconomic Reforms and Governance
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