> If this were true, then China would be like any other neocolony, with a
> booming elite,
Check. Absolutely no question there.
> a destitute majority
Check. China's 'peasants' and 'peasant-workers' (still about 70% of the population) are on the whole pretty destitute. Why else would they work in sweatshops? Or continue to look for work in cities despite the discrimination and exploitation? Many laid-off SOE workers are also living in destitute conditions.
> and no independent industrial base.
Independent industrial base? Can you give examples?
> The reality is that China has an East Asian-style developmental state,
> which channels capital into industry
Yes, it does that. Almost half of China's GDP is now going to investment. This is past the Great Leap Forward levels now. Very little of this is being channeled by the national government. Much of it comes from decisions made by provincial and municipal level 'growth machines.'
But I just don't see why the race for accumulation precludes increasing poverty, inequality, and foreign dependence.
> damps down speculations
Or encourages it, depending on what part of the cycle you're in.
> invests
> heavily in research and education,
Don't see a lot of investment into R&D. The state does not need to prod investors to invest into education. It's one of the most profitable businesses in China right now.
> does some redistribution from the rich
> to the poor, etc.
You have got to be joking! The best book on the subject (Riskin and Khan) convincingly showed that redistribution in China after the 'Reforms' increased inequality.
> China's biggest banks are state-owned, and exist
> primarily to finance industrial growth, etc.
China's biggest banks are no longer solely state-owned. You must have seen the news about the sales of large chunks to foreign investors. Big foreign banks are getting board seats, and all the big banks plan to list, so even if they remain 'state-controlled', they will also have another god to appease. Note this is utterly removed from the experience of previous East Asian developmental states.
> Scratch an East Asian
> capitalism, find an East Asian socialism.
>
> -- DRR
Actually if you visit a glitzy city like Shanghai and then visit a rural inland area (or suburb!) you very well may come away with the impression of 'neo-colony.'
Cheers,
Jonathan