Many economists and researchers have found that it is difficult to relate a particular model of economy that has been practised by China. However, a number of characteristics and evidence clearly point towards authoritarian capitalism model of economy. The Chinese political system and social patterns are such that the government intervention is required in one way or the other. Most importantly, the government intervention is utilised to the fullest by the companies and in return the state makes sure to fulfil its agendas through the state controlled companies. Authoritarian capitalism is not possible in a free market democratic economic structure. On the other hand, the power of the Chinese Communist regime has not only given the state an uncompromised control over things, but also it has emerged the Chinese power image at the international level to a new height.
The government in the authoritarian capitalism model is such that it can push its foreign relations and strategic investments with ease and according to its will. Presently, the Chinese investments are focussed more on strategic partner countries such as Thailand (being the neighbouring nation), South Africa (as a member of the BRICS). These investments are important both in terms of future return and in having better foreign policy leverage. Major Chinese companies (both private and publicly listed) are encouraged to invest in the strategic destinations and the government controlled national banks provide necessary capital support for the endeavours. As a result, the Chinese giants are easily out pricing the European and American competitors in certain markets. However, in a free democratic open market it is not possible for the government and the capitalist market to go hand in hand. For example, the Obama government in the USA cannot force the American corporations to invest in its strategic Southeast Asian markets unless the companies see value in it.