Chinese System and Nordic Exceptionalism: What Explains the Difference in Economic Development as well as Inequality?

While traditional economics believes that inequality is an inevitable product of capitalist activities, the outstanding performance in both economic growth and development indicators of Nordic countries, constituting Finland, Denmark, Norway, Sweden and Iceland, draw loads of interest in how they manage to achieve this unique exceptionalism in the globe range. This paper undertakes a comparative analysis of the different development trajectories between China and Nordic countries, trying to uncover the secret to sustain the unparalleled model and to find inspiration to deal with the gradually noticeable issue of inequality in China. The exploration of factors contributing to Nordics development delves into social, economic and political realms, and presents that policy consistently contributing to the welfare-orientated system is the major drive for economic development. We also look at the possible policies worth referencing for China to sustain its development but also emphasize that it needs to suit Chinas own national conditions.