Late Stage Capitalism
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I'll never understand people who insist China is 'State Capitalism' but Nordic countries are ideal socialism, somehow.
I'll give you a hint: it's about race.
There are a few different reasons that give rise to these (false) conclusions, and different reasons manifest in different degrees. Ie, not everyone will have all of these reasons, but most have at least one.
Chauvanism. Intentionally or not, there is often a superstructural element to western thought derived from being a beneficiary of Imperialism that discredits the achievements of non-Western Leftists. The fact that a western revolution has failed to materialize leads to some westerners being defensive and thus discrediting the achievements of the PRC.
A lack of real analysis at what the PRC is economically structured as. It's easy to not understand the makeup of the PRC's economy if you don't engage with it.
A lack of reading Marxist theory, and thus not being able to properly analyze structures from a Dialectical Materialist perspective.
In my opinion, those are the main 3 reasons for such conclusions.
I imagine the next deflection is something like 'but china has the second largest number of billionares', but as soon as you sort that list by per-capita it suddenly tells a very different story.
Especially since that number is decreasing in recent years while GDP growth is still solidly positive.