Deconstructing China’s Economic “Paradoxes” from the Essence of Resource Allocation：A First-Principles Analysis Based on Political-Economic Integration

Zhang, Shuangning (2025): Deconstructing China’s Economic “Paradoxes” from the Essence of Resource Allocation：A First-Principles Analysis Based on Political-Economic Integration.

Abstract

Mainstream Western economics has long separated politics from economics, constructing an idealized phenomenological model based on “homogeneous individuals, no classes, and no power intervention.” Using this model as a benchmark to judge China’s economic practice has produced the so-called “Ten Major Paradoxes of the Chinese Economy.” However, these paradoxes do not indicate that China’s economy violates economic laws; rather, they are the inevitable result of Western theories detaching themselves from the homologous essence of politics and economics and ignoring the underlying logic of resource allocation in human society. Starting from first principles, this paper traces the original logic of human nature, class, power, and politics, compares the core differences in social structure and governance models between China and the West, and reveals the underlying logic of China’s economic operation. It ultimately demonstrates that all the so-called “Chinese economic paradoxes” can be completely explained within the framework of “political-economic integrated resource allocation.” The confusion in Western economics stems essentially from the limitations of its own theoretical framework, not from any anomaly in the Chinese economy.

• Item Type: MPRA Paper
• Language: English
• Keywords: Political-Economic Integration, Resource Allocation, Chinese Economy, Economic Paradox, Governance Model
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology > B41 - Economic Methodology; B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B51 - Socialist ; Marxian ; Sraffian; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P21 - Planning, Coordination, and Reform; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P26 - Political Economy ; Property Rights

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