Sep 22, Kathmandu - As capitalism continues to expand in China, the long-dormant Marxist economics have been revitalized by the rapid rise of artificial intelligence (AI) and robotics, according to former Greek finance minister Yanis Varoufakis. Once confined to mere formalities at top Chinese universities, Marxist ideas are now gaining new energy through technological advancements. Chinese Marxist economists warn that the country’s vast trade surplus, if used solely for asset speculation, risks trapping China in a rentier economy marked by declining profit rates and industrial decline—a phenomenon known as the 'rent trap.'

Unlike the West, where AI-driven firms focus on creating rent through virtual services, Chinese companies are emphasizing manufacturing and industrial automation, making AI accessible and affordable through open-source initiatives. As AI and robotics push productivity to new heights, the resulting drop in the value of commodities and profits could dismantle capitalist profit structures, aligning with Marxist predictions of surplus value decline.  

China’s state-capitalist system aims to prioritize long-term automation and production, potentially laying the groundwork for a socialist economy centered on abundant, high-quality goods and the fulfillment of human needs. However, concerns remain about whether this technological revolution will genuinely serve the people's welfare or merely create a new elite class wielding control over advanced technologies.