Chapter 19, Problem 17AA

To determine

To explain: The reason for China continues to shift from non-capitalist system to a capitalist system and the result due to this shifting.

Explanation of Solution

China has been moving from a non-capitalist system to a capitalist system. China slowly has introduced reforms that show movement towards a capitalist economy. The Chinese economy has developed itself as a market economy and hence many business ventures have invested in markets of China with the Chinese government as their business partner.

There are private property rights in capitalism. China also owns large parts of the economy and industries. The production quota is also set up by the provincial governors in China. The government also leases land to the farmers and without completing the private property rights, farmers cannot invest in land. As most of the property rights and rules are set by the government, China has moved from a non-capitalist system to a capitalist system.