state capitalism: meaning, definition, pronunciation and examples
C1/C2Formal, Academic, Political-Economic
Quick answer
What does “state capitalism” mean?
An economic system in which the state owns and manages capital goods and major enterprises while operating within a market framework.
Audio
Pronunciation
Definition
Meaning and Definition
An economic system in which the state owns and manages capital goods and major enterprises while operating within a market framework.
A hybrid system blending capitalist modes of production (markets, profit, wage labor) with significant, strategic state ownership, investment, and direction of the economy, often seen as a transitional or developmental model.
Dialectal Variation
British vs American Usage
Differences
No significant lexical difference. The concept is used identically.
Connotations
In British discourse, often linked to critiques of nationalised industries or discussions of China. In American discourse, often framed in geopolitical opposition to 'free-market capitalism'.
Frequency
Slightly higher frequency in American academic/political discourse due to its use in China analysis.
Grammar
How to Use “state capitalism” in a Sentence
[state capitalism] + verb (flourishes, emerges, describes)adjective + [state capitalism] (Chinese, modern, industrial)preposition + [state capitalism] (under, in, of, towards)Vocabulary
Collocations
Examples
Examples of “state capitalism” in a Sentence
verb
British English
- The government is accused of trying to **state-capitalise** the energy sector.
- The move was seen as **state-capitalising** core industries.
American English
- They feared the policy would effectively **state-capitalize** the tech industry.
- The trend toward **state-capitalizing** infrastructure is clear.
adverb
British English
- The economy was managed **state-capitalistically**. (Very rare)
American English
- The fund operates **state-capitalistically**, seeking both profit and policy goals. (Very rare)
adjective
British English
- The **state-capitalist** model has its proponents.
- We analysed the **state-capitalist** tendencies in their policy.
American English
- A **state-capitalist** approach defined their development.
- The **state-capitalist** system created powerful national champions.
Usage
Meaning in Context
Business
Used to describe market environments where major competitors are state-owned enterprises (SOEs).
Academic
Central term in political economy, comparative economics, and development studies.
Everyday
Rare. Might appear in high-quality journalism discussing economic systems.
Technical
Precise descriptor for economies with significant state ownership within capitalist structures.
Vocabulary
Synonyms of “state capitalism”
Strong
Neutral
Weak
Vocabulary
Antonyms of “state capitalism”
Watch out
Common Mistakes When Using “state capitalism”
- Confusing it with socialism or social democracy.
- Using it to describe any government intervention in the economy (which is too broad).
- Incorrect pluralisation: *state capitalisms (rarely used in plural).
FAQ
Frequently Asked Questions
No. Socialism aims for social ownership of the means of production, often with reduced market roles. State capitalism retains private property, capital accumulation, and wage labour, but with the state as a major owner/player.
Often cited examples include contemporary China, Singapore (historically via sovereign wealth funds), Norway (via its oil fund), and some Gulf states. The degree and form vary significantly.
Not necessarily. It typically involves a market for goods, labour, and often capital, but the state uses its ownership and regulatory power to direct the market towards national objectives.
It is academically descriptive but carries strong ideological connotations. Liberals and libertarians use it pejoratively; some developmental economists use it descriptively; supporters of the model may reject the label.
An economic system in which the state owns and manages capital goods and major enterprises while operating within a market framework.
State capitalism is usually formal, academic, political-economic in register.
State capitalism: in British English it is pronounced /ˌsteɪt ˈkæp.ɪ.təl.ɪ.zəm/, and in American English it is pronounced /ˌsteɪt ˈkæp.ə.t̬əl.ɪ.zəm/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “'the heavy hand of state capitalism'”
- “'a dose of state capitalism'”
Learning
Memory Aids
Mnemonic
Imagine a CAPITALIST city where the STATE government owns all the major factories and banks. It's capitalism, but the state is the biggest capitalist.
Conceptual Metaphor
THE STATE AS A DOMINANT CORPORATION or THE MARKET AS A STATE-DIRECTED PLAY.
Practice
Quiz
Which of the following is NOT a typical feature of state capitalism?