The unstated assumption in the West is that former communists have abandoned nonmarket economics, but the demise of communism as an economic philosophy has been exaggerated. China, in addition to maintaining highly protectionist policies, maintains numerous features of the communist system, such as government economic planning, government ownership of industries, and widespread subsidies. Russia seems to have come further in implementing political reforms, but a surprising amount of the communist economic machinery remains in place and the Russian government is still deeply involved in owning and managing the economy. Worse yet, Russia shows strong signs of becoming increasingly protectionist and suspicious of foreign companies. Many Western businesses that have attempted to operate in Russia complain of contracts being ignored by the government, which is now renationalizing industry in concert with adoption of more protectionist policies.
China is no better.
As the head of China's National People's Congress, Qiao Shi, has argued, China is a society ruled by strong men, not by laws. Laws and contracts can be swept aside if China's rulers wish to do so. China's lack of respect for rules is also a problem at the international level. In recent years, the United States has concluded a number of important trade agreements with China on such topics as protection of intellectual property and market access. Unfortunately, these agreements have had only a limited impact on China's behavior.