>>2555858china has a leninist state apparatus where the CPC monopolizes political power. europe has a liberal democracy where capitalists can buy elections.
china's news organizations are all state owned, europe has private business that run the majority of the news media.
in china, 18 out of the top 20 firms are state owned. ordoliberal theory (as developed in postwar Germany) emphasizes that the state should create the conditions for fair competition, not directly compete with private enterprise, but the majority of chinas largest firms are state owned which runs against that theory. in europe, the majority of largest companies are privately owned or publicly traded with private shareholders.
china also has golden shares in large private companies where that gives the state special voting rights or board influence, usually over key decisions like data control, content, or ownership changes. meanwhile, the european court of justice has repeatedly ruled that golden shares violate EU principles of free movement of capital.
the largest banks in china are state owned. the party directly appoints top executives, and internal CPC committees guide major decisions. 98% of finance is state-controlled in China. china has also implemented a salary cap for employees at state owned financial institutions.
in europe, the majority of the largest banks are privately owned and publicly listed. europe’s private banks operate under market discipline.
while china does have a stock market, its economy does not rely on the stock market and gets financed primarily through state bank loans and government funding. the loans and funding are set through five year plans that shape industrial policy and set strategic direction, often through "policy banks" that do not care about profit and will take reasonable losses to to achieve social ends. meanwhile, europe's stock market is as a significant driver of economic activity. capital allocation largely depends on profit signals, investor confidence, and market valuation, not state directives.