Additional optional questions: *How have those changes evolved over time? *How did a "socialist market economy" work differently than American capitalism at the time or the previous Chinese Communism? *Who are the key individuals/bodies who decided economic policy in the Chinese government? How were they appointed? *Before and after these policies changes, what kind of power can the Chinese government exert over (large and small) Chinese companies?
If anyone has book suggestions that provide an overview of the ideological and economic history of the Chinese government, particularly one that covers up to current day, I would really appreciate that as well!
Aside: My interest was sparked for this topic by reading this article on Wired about how the Chinese government is partnering with technology firms to create a "social credit" that allows them to influence behavior. The question I asked is relevant to this article because I'm interested to see how this fundamental policy change about private organizations has potentially aided China in furthering authoritarian control.
I can only answer what I know.
China only became semi-capitalist in the 70s/80s under Deng Xiaoping, who created what is known as “Socialism with Chinese Characteristics”. It must be addressed that political systems are complex and not straightforward, and that one is hardly extremist these days.
The 70s also saw the rejection of Keynesian values (government welfare etc) which was present after the Great Depression. Thatcher and Reagan paved the way for neoliberalism in the 70s, as they believed that for economic success, companies must be able to exercise power freely and be free of governmental control. With systems like that being adopted by major powers, Deng had to keep up, but at the same time retain Mao’s socialist values, thus creating the somewhat ironic yet applicable system.
Personally if you ask me, I think China can be more aptly described as authoritative in the social sphere, but more liberal in the economic sector.