The Political Economy of Capital Accumulation in Contemporary China

Since the mid-2010s, China’s capital accumulation and economic growth have slowed markedly. This article examines the distinctive characteristics of capital accumulation in China and analyzes the factors behind this significant downturn. The findings indicate that throughout the 2010s, China’s economy was constrained by an unusual combination of insufficient demand and a profit squeeze. Challenging the prevailing “debt crisis” narrative, the article explores the obstacles to substantial state-led stimulus in China. In light of tensions between capital and the state, this study discusses the resulting political-economic dynamics, suggesting that China may increasingly need to confront fiscal conservatism and reduce its reliance on private capital accumulation.