The epistemic evolution of market authority: Big data, blockchain and China’s neostatist challenge to neoliberalism

Abstract

Neoliberalism initially invoked the authority of competitive markets as the ideal epistemic mechanism for socio-economic coordination. Yet, the rise of neoliberal ‘market society’ in Western advanced economies since the 1970s has been underpinned by a normative political theory that advocates the reconfiguration of society and politics around the authority of economic theory and knowledge in both production, but especially finance. Conversely, the reform-era development of China’s ‘socialist market economy’ has been underpinned by an insistence on retaining centralized political power over the allocation of financial capital. This article argues that the rise of digital algorithmic technologies constitutes one means by which these contrasting politico-economic visions are being more closely reconciled. It investigates the ways in which China’s ongoing construction of an explicitly authoritarian capitalism is being facilitated by the deployment of complementary financial technologies that enable the Chinese Communist Party to embrace the micro-level epistemic coordinative function of markets without relinquishing macro-level political power and juridical sovereignty over these markets. Following a comparative historiography of the praxis of ‘neoliberal’ and ‘neostatist’ political theory in contemporary capitalism, two case studies of blockchain-enabled currency and big-data driven credit scoring in China illustrate the emergent Fintech foundations of Chinese authoritarian capitalism. The findings contribute to our understanding of how markets are being reshaped by new algorithmic technologies, as well as illuminate some of ideological contradictions in existing conceptions of markets as (neo)liberal institutions at the centre of capitalist political economy.

Insights into financial technology (FinTech): a bibliometric and visual study

“…As a critical technology and one of the research topics closely related to FinTech (see Fig. 6 ), big data has a great influence on reshaping the market by introducing new algorithmic technologies and is the key production element of the digital economy and digitalization (Gruin 2020 ). It is the best technical support for financial innovation.…”

Digital currencies, monetary sovereignty, and U.S.–China power competition

“…In addition, Chinese leaders have embraced blockchain technologies as a great opportunity to realize their vision of "authoritarian capitalism" (cf. Gruin, 2021;G. Huang, 2022).…”

“…In addition, Chinese leaders have embraced blockchain technologies as a great opportunity to realize their vision of “authoritarian capitalism” (cf. Gruin, 2021; G. Huang, 2022). Blockchain promises to link data, financial, retail, and logistical platforms into a united infrastructure.…”

Same same, but different: Varieties of capital markets, Chinese state capitalism and the global financial order

“…As McNally (2013: 38-39) argues, there is a 'considerable distrust of markets and full-out economic liberalization'. The state rather engages in a 'pragmatic use' of markets, managing markets for specific policy goals (see also, Gruin, 2021). Especially with capital markets, the authorities see considerable downsides to unfettered financial activities after experiencing several scandals domestically in the 1990s and intensely studying financial crises and their socio-political impacts on other states and societies (e.g.…”