Advocates of government planning often cite China as an example of economic success. China supposedly achieved success by adopting a mixed economy.
According to Joseph Stiglitz, the Chinese government has avoided the deficiencies of capitalism and communism by allowing a limited amount of private competition, while also retaining strong governmental controls over investment. Chinese GDP statistics seem to support the case for government regulation of markets, but there is a problem with this data. The problem with the statistics that the Chinese have reported on GDP is that they are exaggerated. At the end of last year the World Bank published a report on Chinese GDP. World Bank economists used the standard method of Purchasing Power Parity to measure Chinese GDP in terms of US dollars. The result of this study is that Chinese GDP is lower than previously believed. FULL ARTICLE