496 terms

Actuel China -1

Political and recent China

Terms in this set (...)

What is Nationalism?
There are two broad meanings:
(1) The attitude that the members of a nation have when they care about their national identity, and
(2) the actions that the members of a nation take when seeking to achieve (or sustain) self-determination.
What is Multi-polarity?
Multipolarity in international politics describes a distribution of power in which more than two nation-states have nearly equal amounts of military, cultural, and economic influence.
What is globalisation?
~ refers to processes that increase world-wide exchanges of national and cultural resources
What is diplomacy?
It is the conduct of international relations through the intercession of professional diplomats with regard to issues of peace-making, trade, war, economics, culture, environment, and human rights.
What is the total population in China today?
1.3 billion
How large and how powerful is China's army?
Total strength of 2.25 million and its reputation is crowned by the possession of nuclear weapons that are capable of all ranges and delivery modes.
What is a global power?
It is a country that could project significant influence on international affairs.
It also promotes international order; have a formidable military power with much willingness to use it; engage productively in transnational projects that concerns global justice.
In October 1st, 2009, China celebrated its _________________th anniversary of communist rule in mainland China.
What was the event that solidified China's rise as a global power?
2009 Financial Crisis
Which developing countries, in which part of the world have China spread its influence most rapidly?
Thailand, Central Asia ( Uzbekistan, Tajikistan and Kyrgyzstan), Africa (Angola, Sudan, Uganda)*
Two cases in which China's foreign policy focuses on?
Economic development and the protection of its sovereignty and territorial integrity.
"Middle Kingdom" mentality
It is the sentiment feelings of racism towards non-Hans. It is the belief of Han Chinese superiority, and towards the whites as well while the non-Hans and the blacks are seen as inferior.
How significant is it to help Africa?
It diffuses the sentimental value of the Middle Kingdom mentality.
Shangri-La Dialogue of 2013
- Defense and security forum
We see a change in tone of the Chinese towards U.S. military. The change in China's approach, at least so far, has renewed U.S. hope that Beijing will at least be willing to engage in more detailed discussions than they have in the past on thorny issues.
China as a responsible power:
Being the largest contributor to the UN peacekeeping missions
- Anti- piracy patrols off the coasts of Somalia and negotiations to diffuse the South China Sea claims.
- 2010 Shanghai World Expo in assisting the developing world, providing a special corpus worth $100m benefitting more than 120 developing countries.
China as a responsible power through:
Began shifting from a net recipient of foreign aid to a net donor
- She announced in 2006 its intention to establish a $5b Africa Development Fund* to encourage Chinese I on the continent.
- Pledged to offer duty-free treatment to African exports and written off some $2 b debt to over 30 African countries.
China as a responsible power through:
A key player in many regional and int. initiatives
UN, Shanghai Cooperation Organisation(SCO), G20, the BRICS, Six-Party Talks.
China as a responsible power through:
Strives for multilateral consultations and negotiations that affects regional peace and social security.
Shangri-La Dialogue, member of the ASEAN Defense Ministers' Meeting Plus (ADMM-Plus)
China as a responsible power through:
dramatically reduced its weapons of mass destruction(WMD)- related exports since mid-1990s.
International arms control treaty such as Nuclear Nonproliferation Treaty(NNT), Comprehensive Test Ban Treaty, Chemical Weapons Convention and became member of major SS denial cartels such as Zangger Committee.
China as a responsible power through:
*Embracing Globalisation
- Economic success impacted the world on a positive note.
- WTO placed China in a rules-based and open trading system.
- Continued to be the supplier of cheap manufactures and market for global products during the 2009 Global Financial Crisis.
China as a irresponsible power
- Human RIghts
- Economic competition
Human rights:
Unpopular Regimes
http://farm4.staticflickr.com/3099/2910015013_a97a4ac002_m.jpg -Refused to back sanctions of Sudanese officials over atrocities in Darfur.
- Refrained from supporting stern UN sanctions against Libya, Iran and Syria between 2011 and 2012 despite international condemnation against the two countries.
Human Rights:
North Korea
- Continue to be NK's strongest supporter despite Pyongyang's repeated provocations agt SK
- Beijing support for abusive govts ard the world
- It was only in 2012 that BJ is more strident in voicing concerns towards nuclear programmes and harbouring terrorism.
Human rights:
Non-interference principle
- Its reluctance disassociates itself from USA and major powers.
China's domestic record on Human Rights, political, religious and press freedom
- Bloody persecutions of the Fulungong movement
- Persistent rejection of Dalai Lama's call for greater cultural tolerance and political reconciliation have stained BJ's reputation.
- Abuse of Chinese Tibetans
Dalai Lama
Tibetan Buddhist guru teacher
Beijing's strategic assertiveness have alarmed major countries.
- Increase in defense budget
- Anti-satellite weapons testing and interest in cyber military capabilities
- The PLA has infrequently made its presence felt within India's northern borders
Economic competition
- Dumping of cheap X
- Local Chi migrants replace Africans in Africa despite generous I
- Technology duplication from US, Japan etc.
In 2010, China has dispatched _____________ military personnel to ______ UN peacekeeping missions.
17,390; 19
China's plans to build ______ schools for the developing nations, send ________ medical experts, train _______ medical staff, and offer medical equipment and medicine for _____ hospitals.
200, 3000, 5000, 100
China is the ______ largest contributor to the IMF at _______%, after the US and Japan.
3rd; 4.01%
Since the inception of the UN Security Council, China has exercised its veto only ________ times, compared to US, Brit and France which have respectively vetoed ________, ________, ________ times.
6; 82, 32, 18.
What are the factors that shape China's perception of its role in the international community?
1. Alleviating external tensions to better address its domestic problems.
2. Reassurance of a growing China's peaceful intentions
3. Work to balance, but not confront, the US.
*Five Principles of Peaceful Co-existence
The Chinese code of conduct for its foreign policy of being firm in principle but flexible in application.
1. Mutual respect for each other's territorial integrity and sovereignty
2. Mutual non-aggression
3. Mutual non-interference in each other's internal affairs
4. Equality and mutual benefit
5. Peaceful co-existence
Peaceful Development stresses that....
China would not become a hegemonic power even as it turns stronger.
What was the main impact of the the cold war detente on China's foreign policy?
Diplomacy was essential.
A stable external environment is key to the success of internal economic reforms.
Comprehensive national power
It is a priority in China's modern strategic planning.
1. Capability to support a vast population
2. Achievement of some balance of power
3. Cultural power to endure hardships
China's PLA doctrine since 1990
"Limited War"
"Nine-dotted claim"
Reinforcement its claim over a disputed shoal near the Philippines in the South China Sea.
China Dream
The next ideology under Xi Jinping concludes that President Xi's dream is of a stronger nation with a strong military.
South China Sea conflict
With Philippines over the Scarborough Shoal
East China Sea conflict
- With Japan over Senkaku and Diaoyu islands
Why is China extensively disputing over the East China Sea with Japan?
Claiming the island would overawe its smaller SEA rival claimants in the South China Sea. (CUNNING CHINA)
China's post-Cold War method to improve image and boost its credibility is known as?
The "Grand Strategy".
What is hindering/ upsetting the realisation of China's "Grand Strategy"?
- The Taiwan Issue
- Territorial Disputes
- Perceived threat posed by reinforced US military in the region after 2011
-Sino-Japanese relations
China's soft power through
1. BJ consensus
2. Panda Diplomacy
3. Promotion of traditional Chinese culture and language worldwide
4. Dispensation of generous loans and I to developing countries.
Beijing Consensus
An authoritative economic Chinese model that differs from the Washington Consensus of market-friendly policies.
Is China's soft policy effective?
No, it is discriminatory, self-absorbed, and chinese media's views are often skewed to reflect inaccurate global realities.
*What are the factors influencing China's diplomatic doctrine today?
1. Emphasis on securing friendship and stability in international environment
2. Safeguard of national sovereignty and security
3. Prestige of the party and its governance
4. Distrust of America and its Allies
Mao Zedong
Leader of rev, 49-76
Hua Guofeng
Succeeded Mao
Deng Xiaoping
Succeeded Hua, 78-92, opened up China, marketized
Zhao Ziyang
Premier 80-87, market reform, pro elections
Hu Yaobang
Helped CR victims
Jiang Zemin
Succeeded Deng, 3 reps., open and market
Zhu Rongji
Premier 98-03, strong leader
Li Peng
Chair of Congress, #2 in politburo, 88-03
Hu Jintao
Succeeded Jiang, conservative
Wen Jiabao
Premier, popular
Wang Zhenyao
Peng Zhen
Against elections, standing committee chair 83-88
one country, two systems"
An idea originally proposed by Deng Xiaoping for the reunification of China during the early 1980s. He suggested that there will be only one China, but areas such as Hong Kong, Macau and Taiwan can have their own capitalist economic and political systems, while the rest of China uses the socialist system.
Chinese Communist Party
The founding and the ruling political party of the People's Republic of China.
civil society
The organizations and institutions that are part of a functioning civic system, and that exist independently of government or the state
command economy
An economic system in which all decisions about production, supply, and costs are made by government planners. Contrast with capitalism.
A social, economic, and political system in which power and property are held in common, all decisions are taken communally, and all members of the system are equal in the eyes of the law.
A secular and ethical system of moral rules and principles in China, but although it was akin to a religion, it had no institutionalized church and was more tolerant toward other systems of thought than Christianity.
Falun Gong
A Chinese movement variously described as a sect, cult, or religion, whose large membership and organization may threaten the CCP.
Fifth Modernization
A term used to describe the democratization/liberalizing tendencies implemented by China's Deng Xiaoping
fourth generation
China's 2002-2003 most substantial and orderly change of leadership in decades, starting with Hu Jintao becoming party leader.
Great Leap Forward
An aggressive attempt by Mao to accelerate Chinese economic change.
Great Proletarian Cultural Revolution
Mao's program of ideological reform aimed at strengthening his control over China.
The Chinese Nationalist Party that founded the Republic of China after the fall of China's last dynasty.
An ideology associated with Lenin's revolutionary principles, which included the establishment of a vanguard party, the promotion of democratic centralism, and worldwide revolutionary activity aimed at the overthrow of capitalist imperialism.
Long March
A massive military retreat undertaken by Mao's Red Armies of the Chinese Communist Party to evade pursuit of the Kuomintang army.
Mao's interpretation of communism, adapted to fit rural societies such as China in the 1950s. Included a rejection of elitism, hierarchy, and technical expertise and a stress on communalism, small-scale organization, and social experimentation.
Incentives for Chinese workers and peasant farmers that had been removed during the Cultural Revolution—including promotions, bonuses, and wage increases— reintroduced since 1978.
The philosophy of Karl Marx, who argued that the structure and inequalities of industrialized societies could be explained by understanding the tensions arising out of class struggle, which would ultimately lead to the overthrow of capitalist society.
A combination of the economic theories of Marx and the revolutionary methods described by Lenin, the latter being used to bring about the end of the political and social inequalities resulting from capitalism.
National People's Congress
The "highest organ of state power" in China, the unicameral National People's Congress (NPC) is the nearest equivalent China has to a legislature.
one-child policy
The Chinese government's attempt to keep up with economic demand by limiting every family to no more than one child, implemented in 1979.
Party line
Party strategy and policies.
People's Liberalization Army
The unified military organization of all land, sea, and air forces of the People's Republic of China.
police state
A state in which power is distributed and stability maintained by intimidation and force. Commonly involves the use of secrecy and the granting to government authorities of almost unlimited powers over the lives of citizens.
The executive committee for a number of political parties, most notably those of communists.
China's nearest equivalent to a prime minister in a parliamentary system, arguably the second most powerful person in China after the leader of the party, and always a member of the party Politburo.
primary party organizations
The lowest level of the Chinese Communist Party heirarchy formed wherever there is a minimum of three full party members.
shifting lines
Chinese debate that saw radicals wanting to force the process of achieving the goals of socialism by pursuing an ideological commitment to Marxism-Leninism-Maoism and pragmatists arguing that change needed more than an ideological commitment.
A political and economic ideology based on a redistribution of wealth, political power, and social services; the promotion of social and economic equality; and the elimination of social control (notably through ownership of property).
The political, economic, and social values, methods, and policies associated with the administration of Joseph Stalin in the USSR. These included centralized economic planning, the systematic elimination of all opposition, a cult of personality, a police state, and mass terror and propaganda. Used to describe North Korea today.
standing committees (China)
Group within the Chinese State Council consisting of the premier, the vice premiers, five state councilors and the general secretary, which meets twice weekly and makes most key decisions.
State Council
The highest executive body in the Chinese state system and the nearest functional equivalent to a cabinet.
state socialism
A system in which the state owns the means of production and in which government and party institutions encourage the people toward the ultimate goal of creating a classless communist society.
An island off the coast of mainland China also known as The Republic of China.
Tiananmen Square
Chinese students' pro-democracy demonstration here in 1989 that ended in massacre.
A region under control of the People's Republic of China that struggles for the creation of an autonomous Tibet.
unitary state
A state in which all significant executive power is vested in the national government, with little or no independent power vested in local units of government.
Economic Growth
- Sustained growth of approx. 9% since the late 1970s
- Average annual economic growth rate of 8% over the 1990s decade and 10% between 2003-08
- GDP of China increased from US$147.3 billion to US$4.4216 trillion from 1978 to 2008
- GFC negatively impacted China's exports as economies over the world stopped importing Chinese products Strategies:
- "Open Door policy" adopted under the leadership of Deng Xiaoping in 1980
- Special Economic Zones (SEZ) established, provided various incentives such as low tax rates, exemption from import duties, cheap labour and power and less stringent govt. regulations. --> Trade in imports and exports grew from 10% of China's GNP in 1978 to 36% of GNP by 1996
- China spent 14% of their GDP to stimulate economy, increasing growth to 7.9%. $585bn stimulus spending
Economic Development
- GDP per capita grown by an avg. 8.2% p.a. between 1975 and 2005
- HDI (1975:2005) = 0.530:0.777
- According to World Bank, absolute poverty levels have dropped by approx. 400 million people over the last 25 years
- Poverty rate fell from 53% to 2.5% from 1981 to 2005
- Infant mortality rate fell 39.5% between 1990-2005
- Approx. 800 million have seen no improvement in sanitation and hygiene in recent years
- 10.8% of people still live in absolute poverty in 2005 China has strived to maintain high economic growth p.a. in order to increase its economic development
International Trade
- Since 1978, exports grown on average by 17% p.a.
- TNCs responsible for 65% of total exports
- 3 out of 5 of the world's busiest ports are in China
- Exports and imports account for approx 80% of China's GDP
- China's exports and imports are dominated by manufactured goods, consisting of 91% and 83% respectively in 2002 - Protection reform was put in place during the 1980s --> average rate of tariffs 35% in 1988 to 12% in 2002.
- China's entry to the WTO in 2001 at Doha Conference and other trade agreements with nations
- July 21st 2005, China replaced its fixed exchange rate (peg) against the US dollar with a managed peg against a basket of selected currencies of China's major trading partners
- A key driver of Chinese eco. growth
- TNCs shift production to China due to cheap labour, as factory wages average less than 5% of those in USA
- 2nd largest recipient of FDI in the world
- 240 of the world's top 500 companies have invested in China - Chinese government has extensive capital controls to encourage FDI rather than FPI
- Incentives of SEZs for TNCs to invest
- Poor record
- 5 of the 10 most polluted cities are in China
- Acid rain falls on 30% of the country
- Pollution costs the Chinese economy about 7%-10% of GDP per year according to various studies
- World Bank 2005: 300 million people in rural China have no access to safe water
- 16% of total CO2 emissions in 2003, mostly due to the coal fired power stations
- Since 1950s, total area of lakes shrunk by 15% while wetlands shrunk by 26
- $585 billion stimulus package at the cost of environment. Ministry of Environmental Protection adopted a new "green passage" policy that speeds the approval of industrial projects. 60-day reviews cut to 5-day reviews
- March 1988, National Environment Protection Agency officially upgraded to a ministry-level agency renamed State Environment Protection Administration
- 1999, China invested 1% of GDP in environmental protection
- International agreements: Montreal Protocol (1987, CFCs), Kyoto Protocol (1997, CO2 emissions)
Wealth and Income Distribution
- Since 1970s, 400 million lifted out of absolute poverty
- Urban incomes on average are 4 times those of rural income
- Wealth: urban owning 93% and rural 7%
- Creates great social tensions - SEZs limits the opportunities for the rural population
Jiang Qing
• Mao's wife
• Big political figure
• Formed the gang of four
• Big role in cultural revolution
Hu Waobang
• Leader of the PRC
o Party chairman
o General secretary of the communist party (though Deng really called the shots)
• Pushed for reforms towards capitalism and political reform
• Socialist hardliners forced him to resign in 1987
• After his death, his supporters pushed for continued to reform eventually leading to the Tiananmen protests in 1989
Henry Kissinger
• NSA under Nixon
• Led initial moves towards relationship between China and the US (1972)
• Great Nation Theory of IR→If you could get the top 6-7 nation to agree on what should be done, order would prevail (Kissinger's idea)
William Rogers
• Secretary of state under Nixon (1969-1973)
• Left out of most of the dealings with China in '72
Mao Zedong
• leader of the People's Republic of China (PRC) from its establishment in 1949 until his death in 1976.
• He is officially held in high regard in China where he is known as a great revolutionary, political strategist, and military mastermind who defeated Generalissimo Chiang Kai-shek in the Chinese Civil War, and then through his policies transformed the country into a major world power.
• Critics blame many of Mao's socio-political programs, such as the Great Leap Forward and the Cultural Revolution, for causing severe damage to the culture, society, economy, and foreign relations of China, as well as a probable death toll in the tens of millions.
Jiang Zemin
• was the "core of the third generation" of Communist Party of China leaders, serving as General Secretary of the Communist Party of China from 1989 to 2002, as President of the People's Republic of China from 1993 to 2003, and as Chairman of the Central Military Commission from 1989 to 2004.
• Jiang came to power in the wake of the Tiananmen Square protests of 1989, replacing Zhao Ziyang,
• With the waning influence of Deng Xiaoping due to old age, Jiang effectively became "paramount leader" in the 1990s. Under his leadership, China experienced substantial developmental growth with reforms,
• Jiang has been criticized for being too concerned about his personal image at home, and too conciliatory towards Russia and the United States abroad.
• is contribution to the Marxist doctrine, a list of guiding ideologies by which the CCP rules China, is called the theory of the Three Represents,
Deng Xiaoping
• was a prominent Chinese revolutionary, politician, pragmatist and reformer, as well as the late leader of the Communist Party of China (CPC). Deng never held office as the head of state or the head of government, but served as the de facto leader of the People's Republic of China from 1978 to the early 1990s.
• took over after devastating cultural revolution
• core of second generation of communist leaders
• created the socialist market economy and partially opened China to the global market. He is generally credited with advancing China into becoming one of the fastest growing economies in the world and vastly raising the standard of living.
Chiang Kai-Shek
• In 1928, Chiang led the Northern Expedition to unify the country, becoming China's overall leader[2] . He served as Generalissimo (Chairman of the National Military Council) of the Nationalist Government of the Republic of China from 1928 to 1948. Chiang led China in the Second Sino-Japanese War, during which the Nationalist Government's power severely weakened, but his prominence grew. During the civil war after the Japanese surrender in 1945, he attempted to eradicate the Chinese Communists but ultimately failed, forcing the Nationalist government to retreat to Taiwan, where he continued the struggle against the communist regime. Ruling as the President of the Republic of China and Director-General of the Kuomintang, Chiang died in 1975.
• The World Trade Organization deals with regulation of trade between participating countries; it provides a framework for negotiating and formalising trade agreements, and a dispute resolution process aimed at enforcing participants' adherence to WTO agreements which are signed by representatives of member governments and ratified by their parliaments
"To Get Rich is Glorious"
• Innumerable newspapers and other publications have attributed this quotation to the late Chinese leader. It's supposed to be Deng's exhortation to the Chinese people at the start of his reforms.
• Although there is debate on whether or not Deng actually said it,[17] his perceived catchphrase "To Get Rich Is Glorious", unleashed a wave of personal entrepreneurship that continues to drive China's economy today.
Wen Jiabao
• the current Premier of the State Council of the People's Republic of China, serving as the head of government and leading the cabinet of the People's Republic of China.
• served as Premier Zhao Ziyang's aide during the 1989 Tiananmen Square Protests
• Wen Jiabao is the only Director of the Party's General Office to have served under three General Secretaries: Hu Yaobang, Zhao Ziyang, and Jiang Zemin[2]. A political survivor, his most significant recovery was after 1989, when Wen was the chief assistant to General Secretary Zhao Ziyang. He accompanied Zhao to see demonstrating students in Tiananmen Square. His political fate was markedly more fortunate than his boss; Zhao was purged from the party days later for "grave insubordination" and lived under house arrest in Beijing until his death in January 2005. Wen was able to survive the political aftermath of the demonstrations.
North Korea
• Has close relationship with China (China gives it a lot of aide)
• Share a border with China, and have a problem with people trying to flee to China
o Built concrete and barbed wire fence to keep them out
• China involved in NK's nuclear non-proliferation
Cultural Revolution
• a period of widespread social and political upheaval; the nation-wide chaos and economic disarray engulfed much of Chinese society between 1966 and 1976.
• Effort to reengage ideological radicalism
• All students required to serve time in communes so they don't perceive themselves as elitists
• All had to carry the Little Red Book
• One kind of clothing
• Rooting out of aliens (those contaminated with old order, not radical enough, not pro-Mao enough)
• Concentration camp systems believed to "reeducate" people
Lin Biao
• a Chinese Communist military leader who was instrumental in the communist victory in the Chinese Civil War, especially in Northeastern China, and was the General who led the People's Liberation Army into Beijing in 1949. He abstained from becoming a major player in politics until he rose to prominence during the Cultural Revolution, climbing as high as second-in-charge and Mao Zedong's designated and constitutional successor and comrade-in-arms.
• Mao didn't want to repeat what happened to Gorbachev...thus enacted the cultural revolution (stricter reforms)
George W. Bush
• China and Bush tried to make north korea dismantle their nuclear arsenal
• Supports Taiwan
Long March
• a massive military retreat undertaken by the Red Army of the Chinese Communist Party, the forerunner of the People's Liberation Army, to evade the pursuit of the Kuomintang (KMT or Chinese Nationalist Party) army
• he First Front Army of the Chinese Soviet Republic, led by an inexperienced military commission, was on the brink of complete annihilation by Generalissimo Chiang Kai-shek's troops in their stronghold in Jiangxi province. The Communists, under the eventual command of Mao Zedong and Zhou Enlai, escaped in a circling retreat to the west and north, which reportedly traversed some 12,500 kilometers (8,000 miles) over 370 days
• The Long March began the ascent to power of Mao Zedong, whose leadership during the retreat gained him the support of the members of the party. The bitter struggles of the Long March, which was completed by only one-tenth of the force that left Jiangxi, would come to represent a significant episode in the history of the Communist Party of China, and would seal the personal prestige of Mao and his supporters as the new leaders of the party in the following decades.
Nanjian Massacre
• a six-week period following the capture of Nanking, then capital of the Republic of China, on December 9, 1937. International military tribunals convened at the end of World War II determined that, during this period, the Imperial Japanese Army committed atrocities such as rape, looting, arson and the execution of prisoners of war and civilians rising to the level of war crimes
• source but tension between china and japan
Fang Lizhi
• a professor of astrophysics and vice president of the University of Science and Technology of China whose liberal ideas inspired the pro-democracy student movement of 1986-87 and, finally, the Tiananmen Square protests of 1989. Because of the first, he was expelled from the Communist Party of China in January 1987
• a military alliance established by the signing of the North Atlantic Treaty on 4 April 1949. The NATO headquarters are in Brussels, Belgium, and the organization constitutes a system of collective defense whereby its member states agree to mutual defense in response to an attack by any external party.
Li Peng
• the Premier of China between 1987 and 1998, the Chairman of the Standing Committee of the National People's Congress (NPC) of the People's Republic of China (PRC) from 1998 to 2003 and was second-ranking in the Communist Party of China (CPC) behind Jiang Zemin on the Politburo Standing Committee until 2002.
• Li backed the use of force to quash the Tiananmen Square protests of 1989, and due to this, to the protesters Li became one of the least popular Chinese leaders following the protests. Li promoted a cautious approach towards Chinese economic reform. As Premier, he oversaw a rapidly growing economy, with the GDP rising by almost 10% a year.
Beijing Spring
• refers to a brief period of political liberalization in the People's Republic of China which occurred in 1977 and 1978. The name is derived from "Prague Spring
• During the Beijing Spring, the general public was allowed greater freedom to criticize the government
• Most of this criticism was directed towards the Cultural Revolution and the government's behavior during that time; it was made public with the Democracy Wall Movement.
Kim Jong Il
• he de facto leader of the Democratic People's Republic of Korea
• He succeeded his father Kim Il-sung, founder of North Korea, who died in 1994, and commands the fourth largest standing army in the world. North Korea officially refers to him as the "Great Leader" formerly referring to him as the "Dear Leader".
• ore likely to have received his early education in the People's Republic of China
• in 2002, Kim Jong-il declared that "money should be capable of measuring the worth of all commodities."[39] These gestures toward economic reform mirror similar actions taken by China's Deng Xiaoping in the late 1980s and early 90s. During a rare visit in 2006, Kim expressed admiration for China's rapid economic progress.
Hu Jintao
• General Secretary of the Communist Party of China since 2002, President of the People's Republic of China since 2003, and Chairman of the Central Military Commission since 2004, succeeding Jiang Zemin in the fourth generation leadership of the People's Republic of China, and commands the largest standing army in the world. Since his ascendancy Hu has reinstated certain controls on the economy and has been largely conservative with political reforms.[1] His foreign policy is seen as less conciliatory[citation needed] than that of his predecessor, though China's global influence has increased while he has been in office.
• Hu's rise to the presidency represents China's transition of leadership from old, establishment Communists to younger, more pragmatic technocrats.
Little Red Book
• published by the Government of the People's Republic of China from April 1964 until approximately 1976. As its title implies, it is a collection of quotations excerpted from Mao Zedong's past speeches and publications.
• essentially an unofficial requirement for every Chinese citizen to own, to read, and to carry it at all times during the later half of Mao's rule, especially during the Cultural Revolution.
Nikita Khrushchev
• Leader of the Soviet Union during the Sino-Soviet Split
• His attitude towards the west (rival rather than evil) alienated Mao and the PRC
Chen Shui-bian
• is a Taiwanese politician and former President of the Republic of China. He is colloquially referred to as Ah-Bian
• Chen, whose Democratic Progressive Party (DPP) has traditionally been supportive of Taiwan independence,
People's Daily
• a daily newspaper, is the organ of the Central Committee of the Communist Party of China (CCP), published worldwide
• As the CCP's mouthpiece, the newspaper generally provides direct information on the policies and viewpoints of the Party.
Falun Gong
• Spiritual/religious minority group in China (not supported by gov't)
• In April 1999 over ten thousand Falun Gong practitioners gathered at Communist Party of China headquarters, Zhongnanhai, in a silent protest against beatings and arrests in Tianjin. Two months later the People's Republic of China government, led by Jiang Zemin, banned the practice, began a crackdown, and started what Amnesty International described as a "massive propaganda campaign." Since 1999, reports of torture, illegal imprisonment, beatings, forced labor, and psychiatric abuses have been widespread.
Taiwan Straits (1995-1996)
• the effect of a series of missile tests conducted by the People's Republic of China in the waters surrounding Taiwan including the Taiwan Strait from July 21, 1995 to March 23, 1996. The first set of missiles fired in mid to late 1995 were allegedly intended to send a strong signal to the Republic of China government under Lee Teng-hui, who had been seen as moving ROC foreign policy away from the One-China policy. The second set of missiles were fired in early 1996, allegedly intending to intimidate the Taiwanese electorate in the run-up to the 1996 presidential election.
Embassy Bombing (Belgrade)
• On May 7, 1999 in Operation Allied Force, Six NATO bombs hit the People's Republic of China (PRC) Embassy in Belgrade, Yugoslavia, killing three PRC citizens and outraging the PRC public. At the time of the bombing, the embassy was located in Novi Beograd - later, a new site was designated for the embassy in Dedinje. NATO later apologized for the bombing, saying that it occurred because of an outdated map provided by the CIA. Few Chinese accepted this explanation, believing the strike had been deliberate.
• Tibet is part of the People's Republic of China (PRC) in reality and claimed by the Republic of China (ROC) in its constitution[4] while a small part, according to the PRC and the ROC, is controlled by India. Both sides of Chinese government regard Tibet as part of China.[4] Currently, Beijing and the Government of Tibet in Exile disagree over when Tibet became a part of China, and whether the incorporation into China of Tibet is legitimate according to international law (see Tibetan sovereignty debate). Since what constitutes Tibet is a matter of much debate (see map, right) neither its size nor population are simple matters of fact, due to various entities claiming differing parts of the area as a Tibetan region.
Zhu Rongji
• 5th premier of the PRC
• is a prominent Chinese politician who served as the Mayor and Party chief in Shanghai between 1987 and 1991, before serving as Vice-Premier and then Premier of the People's Republic of China from March 1998 to March 2003.
Red Guard
were a mass movement of civilians, mostly students and other young people in the China, who were mobilized by Mao Zedong in 1966 and 1967, during the Cultural Revolution.
• the unified military organization of all land, sea, and air forces of the People's Republic of China. The PLA was established on August 1, 1927
• the Nationalist Party of China, is a political party of the Republic of China (ROC), commonly known as Taiwan. It is the founding and the ruling political party of the ROC. The headquarters of the KMT is located in Taipei, Taiwan
The KMT accepts a One China Principle and defines "One China" to mean the Republic of China and not the People's Republic of China. In order to ease tensions with the People's Republic of China, the KMT endorses the "three noes" policy - no unification, no independence and no use of force.
Tiananmen 1989
• were a series of demonstrations in and near Tiananmen Square in Beijing in the People's Republic of China (PRC) beginning on April 14. Led mainly by students and intellectuals, the protests occurred in a year that saw the collapse of a number of communist governments around the world.
• The protests were sparked by the death of pro-market and pro-democracy official, Hu Yaobang, whom protesters wanted to mourn. By the eve of Hu's funeral, it had reached 100,000 people on the Tiananmen square. While the protests lacked a unified cause or leadership, participants were generally against the government's authoritarianism and voiced calls for economic change and democratic reform within the structure of the government.
Epidemic in China that highlighted the failure of their healthcare system (2002-2003)
Chou Enlai
• the first Premier of the People's Republic of China, serving from October 1949 until his death in January 1976. Zhou was instrumental in the Communist Party's rise to power, and subsequently in the construction of the People's Republic of China economy and restructuring of Chinese society.
• A skilled and able diplomat, Zhou served as the Chinese foreign minister from 1949 to 1958. Advocating peaceful coexistence with the West, he participated in the 1954 Geneva Conference and helped orchestrate Richard Nixon's 1972 visit to China
Wei Jingsheng
an activist in the Chinese democracy movement, most prominent for authoring the document Fifth Modernization on the "Democracy Wall" in Beijing in 1978.
Hong Kong
• largely self-governing territory of the People's Republic of China (PRC)
• A British dependent territory until 1997, Hong Kong has a highly developed capitalist economy and enjoys a high degree of autonomy from the PRC under the "one country, two systems" framework.
Zhao Ziyang
• a politician in the People's Republic of China. He was Premier of the People's Republic of China from 1980 to 1987, and General Secretary of the Communist Party of China from 1987 to 1989.
• As a high-ranking government official, he was a leading reformer who implemented market reforms that greatly increased production and sought measures to streamline the bloated bureaucracy and fight corruption. Zhao Ziyang wanted to address the epidemic corruption and massive inefficiency in PRC's state-owned enterprises by privatizing them. He advocated separation of the Party and the state and further free market economic reforms. He shared these views with Hu Yaobang and both were overthrown by the conservative old guard of the Party.
• Socialist hardliners of the party purged Zhao Ziyang for his sympathetic stance toward the student demonstrators in the Tiananmen Square protests of 1989 and spent the last fifteen years of his life under house arrest. His name has been a taboo subject since 1989. When he died, the press in PRC did not even mention that he was once a leader of PRC
• is an autonomous region (Xinjiang Uyghur Autonomous Region) of the People's Republic of China
• continued tensions between the PRC and the Islamic separatist movement there. Considered to be terrorists, and harsh crackdowns have occurred against "religious extremists" and "separatists"
Dalai Lama
• The Dalai Lama is a lineage of religious leaders of the Gelug school of Tibetan Buddhism. The Dalai Lamas were also the political leaders of Lhasa-based Tibetan government between the 17th century and 1959. "Lama" is a general term referring to Tibetan Buddhist teachers. Between the 17th century and 1959, the lines of Dalai Lamas were the head of the Tibetan Government, administering a large portion of the area from the capital Lhasa, although the extent of the lineage's political authority and rulership over territory has been contested. Since 1959, the Dalai Lama has presided over the former government of Tibet, now a government in exile.
Characterize Chinese savings
High in all 3 of the main sectors:
*Households (save btwn 15% & 20%)
Why has China experienced such high growth?
*high savings and investment
*rapid growth of modern labor force
*Declining birth rates
*Declining dependence rates
*Economic benefits from successful transition to market economy
*Revival of traditional econ relationships (HK, Taiwan, SEA)
Early successes of the PRC gov
*controlling inflation
*industry rehab
*rapidly increasing investment
*rehab of ag (irrigation improvement)
*Dist land reform (1952)
*mobilized for war in Korea
Material Balance Planning
Used during command economy
*way to coordinate activity in the present moment
*replaced market with a set of quantitative demands
When do cooperatives get formed?
They are formed early on, but not until 1955 does Mao force farmers into cooperatives
Hundred Flowers
Period of absolute free speech
Anti- Rightist Campaign
Follows the Hundred Flowers, imprisons intellectuals
Great Leap Forward
Increased investment
Huge targets
people moved out of ag into industry
communes created
industry "walking on two legs"
material incentives abolished
spike in morality
30 million excess deaths
worst famine
Cultural Revolution
Students and radicals overthrow capitalists and take over society
mobilization of young people
Third Plenum
crucial meeting that initiates the reform era
first era of econ reform
power held by the elders
experimentation with incentives
more autonomy to state-owned enterprises
special econ zones
second era of econ reform
very dynamic, bold, successful
a lot of state industry broken down
third era of econ reform
post 2003
Big push strategy
*Begins in 1949, when PRC is founded
*high and rising investment, mostly in heavy industry
*focused on industries in upper and middle stages of production
Lewis turning point
There is a reservoir of underemployed labor that moves from rural to urban seeking higher wages, until that reservoir is USED UP, and then wages at the bottom rise.
~2006? ag laborers finally making better wage
Who owns land in urban areas?
From the 1950s to now, the state has owned the land
But 80% of urban dwellers have purchased their homes from their workunit --> increase market for consumer durables and home improvements and increase in urban property markets
Who owns land in rural areas?
Collective, but finally the collective has started leasing the land in 50 year leases to individual households. Rural households have always had access to land, even through the collective
*collective farming ended in 1978 and land was divided fairly equally, but still technically owned by collective --> land cannot be used as collateral for borrowing!! and families that migrate away sometimes permanently surrender their land to the collective
What is the largest cause of social conflict in China today?
Disputes over land deals- the village head can negotiate deals to sell land to be converted for industrial, commercial use
China's gender imbalance
120 boys per 100 girls
sex selective abortion (though illegal)
female infanticide
propensity to have a 2nd child is lower and lower though one child policy is less strict now
pre-1978 growth
1978-2005 growth
per capital growth
pre 1978 growth = 6%
1978-2005 growth = 9.6%
went from 4.1% pre 1978 to 8.5% post 1978 because of slow population growth
Characterize Chinese investment
not dependent on foreign capital inflows
financed through chinese domestic savings
Development patterns of structural change in theory
*decreased labor in ag causes increase productivity in ag
*increased labor in mining, manu, construction, causes increased share of gdp in these sectors, and then levels off
*service sector doesnt grow much
Development pattern of structural change in China
1st pd: 1978-1990
age decreases slowly, service increases rapidly, industry increases slowly
2nd pd: after 1991
rapid industrial growth
service leveled off at 40% of GDP
age decreases rapidly from 29% to 13% of GDP
What sets Chinas marginal wage now?
*the supply of young people willing to leave the farm for urban employment, and the supply of young people entering the labor market
*willingness to migrate decreases a lot after age 30
*so supply of migrants depends on the supply of young people, which is decreasing
What should gov do to boost consumption share of economy?
*must boost the labor income share of GDP (i.e. wages cannot grow slower than GDP)
*Labor income share of GDP declined because of structural shift from age (where labor income share is about 90%) to industry (where labor income share is <50%)
*can increase labor income share by developing service industries, deregulating service and industry, and increasing trade and foreign investments
China's inflation concerns
*China needs faster wage and consumption growth, but it will lead to inflation
*must learn to live with this if china wants to rebalance economy toward consumption
*can try to control inflation through more flexible exchange rate policy
What was the labor market like under the command economy?
There was no labor market, each worker was a lifetime member in either rural or urban public employment
What is the labor market like now?
*70% of population is of working age
*labor force participation is high
5% of labor force works for gov, 80% works in private sector
*large informal sector
*more flexible, diverse system, but lacks the guarantees of the old system
Labor market during reforms
*Things stayed mostly the same until 1990s
*Then SOEs began massive layoffs (~30% of entire labor force)
*increased labor mobility
*increase unemployment
Peak of unemployment
*peaked between 8% and 10% in 1997
*but the 2002 econ boom brought down unemployment
*we expect a serious unemployment problem until at least 2015
What sector do migrants in urban areas work in?
dominate areas such as construction and textile mills
What sector are urban residents preferred in
Government and local service traing
In what sectors do migrants and urban residents compete?
retail, restaurants, petty trade (but this competition has not lead to equalized incomes, because urban residents still get subsidies that make their total incomes higher
*socialist system did a good job giving basic edu to everyone, but did not reward people who got higher edu. During socialism, edu not a predictor of income, and returns to edu = 0
Returns to edu began to climb in 1990s, reaching 7.5% in 2002 (changed because in 1990s less educated were more likely to be laid-off)
when we the mass lay-offs at the SOEs?
Migrant decision
*Decision to migrate made by households, not individuals
often return home to maintain land ownership or carry out life goals
*depends on how many family members there are, edu, age
Three periods of income growth
1. 1978-1985
rural = 15% per year
urban = 7% per year
2. 1985-1991
rural = 2.8% per year
urban = 4.8% per year
3. 1991 - 2004
rural = 4.9% per year
urban = 7.7% per year

--> urban-rural gap has been widening for 20 years
Why did we see such a huge number of people come out of poverty in the 1980s?
*increased TOT for age
*increased ag prices
*increased supply of modern inputs
*dissolution of collectives
*egalitarian dist of land

these factors were exhausted by mid-1980s, so poverty reduction has been slower
Post 1996 poverty reduction
*reduction slowed
*growth concentrated in urban coastal areas
*dense pop running up against limits of environmental sustainability
*farm prices decrease in wake of market liberalization
*fiscal system does not serve poor regions well
*continued restrictions on migration
How much of the total pop is in poverty now?
about 8%
most important factor in the increased China's increased inequality
widening rural-urban gap
Life expectancy at birth
70.9 years
Infant mortality
30/1000 in 2003
= middle-income country average
a lot of variation, reflecting rural-urban gap
when were the ag collectives disbanded?
early 1980s
"Grain First" policies
*emphasis on compulsory procurement of grain from peasantry at low prices
(this is an implicit tax on peasants to pay for industrialization!)
*emphasis on QUANTITY of output, even if producing more didn't increase income
*stress on grain self-sufficiency throughout China, even if areas not well-suited for it
Rural Land Contracting Law of 2003
*made rural land property rights more clear
*facilitated development of land markets
Green Revolution
*improved seeds, fertilizer, irrigation, increased production
*improvement in yields per unit of land
*could not be applied to what region until substantial infrastructure construction and tech adaptation took place
*produced HYVs
*in 1970s gov made commitment to develop nitrogen fertilizer industry
*introduction of hybrid and dwarf seeds
induced innovation hypothesis
*technical change is derived from demands of cost-minimizing agents to save on relatively scarce resources and to use relatively plentiful resources
what will drive future development of Chinese ag?
Imperative of dietary improvement and demand pressures
What ag stuff does China import, export?
*imports land intensive stuff like corn, cotton, soya
*exports rice, veggies, flowers, fruits, canned foods
Golden age of TVEs
privitized in 1995 (and then were less able to absorb rural labor)
*Township and village enterprises
*sprung up in rural areas (which were much less controlled than the cities)
*provided competition to SOEs in urban areas
*increased rural incomes and employment, decreased urban-rural gap
*"Five small industries" = iron &steel, cement, chemical fertilizer, hydo power, farm implements (capital intensive, used few workers)
*revenues channeled into rural community govs --> rural collectives being allowed to share in some of the income-earning potential created by the states monopoly over industry
Causes of rapid growth in rural industry with TVEs
*TVEs faced factor-price ratios that reflected China's true factor endowments, had to buy capital at market rate, so specialized in sectors with low capital-labor ratios
*able to share in monopoly rents created for state firms--> lots of profit
*institutional framework surrounding TVEs was favorable to development (enjoyed benefits of gov price policy but didnt have to pay same taxes, access to capital from banks because local govs acted as guarantors)
What were the main TVE models?
*southern jiangsu model: collective remained in control even after collective system was gone elsewhere, TVEs bigger, more capital-intensive, tech sophisticated
*Wenshou model:collectives disappeared early, focused on labor-intensie activities, production chains linked by markets
*Pearl River Delta Model: TVEs developed rapidly under foreign investment, export-oriented factories, open domestically and internationally, often partly HK owened
How did reforms affect TVEs?
1990s : reforms caused increased comp for TVEs --> end of TVE rapid growth
*increased income --> demand for goods of higher quality than those that TVEs produced
New form of rural industry after TVEs
Industrial clusters
*large number of firms that contribute to a single, specialized product
*small firms that compete with each other but cooperate to form a relatively complete industrial chain
*mediated by efficient markets
Growth of Industry
Has grown at real rate of ~15% since 1980
Most important external factor driving driving institutional change in industry
entry of new firms (TVEs) --> increase in competition --> decrease in markups and surplus earnings of SOEs
(industrial transition was less about privatization and more about entrance of competitors)
First period of industrial transition
*TVEs enter with less obligations and burdens than SOEs, decreasing SOEs share of total industrial output
Second Period of industrial transition
*Company Law, 1994
gave framework for "corporations SOEs and created legal framework in which any ownership for could operate
Company law
*gave framework for "corporatizing" SOEs
*created legal framework in which any ownership form could operate
*specifies board of directors as supreme authority in the corporation
*managers now accountable to board instead of many gov agencies
*increased focus on profitability
Three main anti-poverty programs
*subsidized lending to households and businesses (large micro-credit operations)
*food for work program (once a project is approved, gov provides building materials & food for the worker
*budgetary grants- local govs given earmark funds to finance public investment projects
Urban-Rural education gap
*almost all go to HS
*of those that go to HS, 70% go on to some kind of tertiary edu
*about 8% go to HS
*of those that go to HS, about 2% go to college
Describe China's reaction to the financial crisis
First country to pull out of the crisis
used top-down political system to create thousands of new investment projects
starts to play new role (climate talks, g20)
Chinas modern growth
approaching GDPpc that is close to the world's GDPpc
has grown faster and longer than any other economy in the world
What are the five processes of change and growth that China is currently undergoing?
Why has growth happened more quickly and has it been more prolonged than was anticipated?
*Structural change (changed from ag to industry, lots of urban migration)
*Demographic change (lots of young people with no dependents)
*Policy of high levels of investment (gov has taken lead in investment)
*Infrastructure and heavy industry are growing together
*Foreign trade (entered WTO in 2001)
Chinas investment in 2004
40% of GDP output used for group fixed capital (went up to 45% in 2009)
Why is savings high in China
All three of the main sectors in China are big savers
1)households save between 15 and 20%
3) Gov
Future challenges for China's growth
-All five of the special factors are winding down:
*Max pt of urbanization has passed
*Dependency ratio will rise
*Presumably the investment rate cant rise much higher than where it is
*Must make transition to slower growth economy
*Uncertainty about political transition we may be close to
Where is civilization centered?
Northern area
94% of population is east of the Aihui-Tengchong line
Largest = N china plain
Yangtze river delta
Economic core
Beijing and Shanghai (linked by the grand canal)
5 fastest growing coastal provinces
Shandong, Jiangsu, Shanghai, Zhejiang, Fujian, Guangdong
Etgbuc groups
Mostly Ethnic Han Chinese (92%)
Important Dialects
Traditional Economy
Highly productive agriculture
Written contracts
Bottom-Heavy Economy
Poor but efficient
Early successes of PRC gov
controlling inflation
industry rehabilitation
rapidly increased investment
rehabilitated age
retained capitalist scientists and intellectual
distributive land reform
mobilized for war in Korea
Soviet Style economic system
public ownership of means
material balance planning
Material Balance Planning
way to coordinate activity in the present moment
sources = uses
replaced the market with a set of quantitative demands
bold departure from market system
set quantities
Nomenklatura system
*all important jobs appointed by the communist party
*human resource function is centralized and exercised by the communist party
*command economy
finance exiss only to accomodate the plan
material inventives
Hundred Flowers
period of absolute free speech
Anti-Rightist Campaign
targets many intellectual, sends tem to prison or to work in the countryside (after the hundred flowers)
Radical Shift 1964
Mao returns
*ideological warfare against intellectuals, rural "socialist education", Khrushchevites
Cultural Revolution
*Students and radicals overthrowing entrenched capitalist leaders
*takeover of virtually every aspect of society
*especially targets the older revolutionary leader who were colleagues of mao
*mobilization of young people
*not as destructive as the great leap forward
Maoist Economic Model
*militarization of the economy
*strong de-emphasis on consumption
*posterity socialism, no material incentives
*each province was supposed to be self-sufficient in grain
Beginning of Economic reform after Mao
strategy of exporting oil and importing factories isnt working
Third Plennum
Dec 1978
crucial meeting
initiates reform era (reverse cultural revolution, new prolicies give "ag a chance to breath", changing political atmosphere)
First Era of Economic Reform
elders= powerholders
zhao ziyang and hu yahbang brought in
look for ways to make reform effective
adopt rural reforms
experimentation with incentives
more autonomy to state-owned enterprises
special economic zones
second era of economic reform
zhu rongji as premier
especially dynamic
bold and successful
a lot of state industry borken down
WTO membership
When was mobility restricted in China?
1960 to 1990s
but now there is significant movement from rural to urban.
but the rural-urban income gap has not shrunk
Urban residents during socialist period
*Organized by work unit with a formal heirarchy.
*Gradually built up system of social benefits and entitlements
*Relatively privelaged
Rural residents during socialist period
*Organized into agricultural collectives
*No mechanisms to redistribute resources across collectives
*No standards or entitlements that applied to all rural residents
*no claim on national resources
How were differences between roral and urban organization during the socialist period used to carry out the Big Push strategy?
*Rural areas were used to extract food, deliver grain to gov
*Urban work units received government investment
What is mobility like currently?
It is easier for rural people to live in cities without urban residence permits, but they still receive less benefits.
*Urban residence permit guaranteed membership in a danwei
*Work unit responsible for providing services and benefits to urban residents
Benefits of Danwei
Job security
Guaranteed access to food grains
health care
education for kids
low-cost housing
Urban property rights
All urban land was nationalized in 1950s.
Gov assumed responsiblity for water, sewage, transportation, police protection, and schools
all urban land was (AND STILL IS!) owned by state
rights to use land are bought and sold
Rural collectives
*collectives: 1955-1982
*Gov heirarchy in countryside but bulk of country life is outside of the gov system
*usually pay full cost for services
How is China's development different than other economies?
1. invests more
2. concentrates more on manufacturing
3. has grown more rapidly
China's Growth
*Growth btwn 1949-1978
*but growth really took off in 1978 (beginning of reform)
*pre-1978 growth = 6%
*1978-2005 growth = 9.6%
*but per capital gdp growth went from 4.1% to 8.5% (slow population growth!)
China's Investment
*not dependent on foreign capital inflows to finance domestic investment (financed through chinese domestic savings)
China's Labor
*740 mn economically active people in 2002
*high proportion working age
Traditional Society (population)
High BR
High DR
TFR is about 6 (# children a woman births during lifetime)
Modernization of population
^ nutrition and sanitation > ^ health > v DR and initially BR stays high > ^ pop growth
br gradually declines > v pop growth
Demographic transition
*high to low pop growth, took 20 years in China
*fertility has fallen rapidly and is now probably below replacement level
One Child Policy
*begins Sept 1980
*Sanctions for women who have more than one child
*not applied to minority groups
*resulted in gender imbalances
China's declining BR
part of a global trend of declining brithrates
as mothers education increases and cost of raising increases, there is a decreased demand for children everywhere in the world
Wage determination
w = f(edu, urban,male,experience ,partents income, formal v. informal, appearance, party member, unobervables)
Marginal wage is set by the supply of young people willing ot leave the farm for urban employment, and supply of young people entering the labor market
Willingness to migrate
decreases sharply after age 30
so supply of migrants is largely a function of the supply of young people
Labor Demand
Early 2000, increased demand for labor in rural industry
2005, increased labor demand from urban state sector
increased demand for labor in service sector (concentrated in low productivity areas)- this can only be sustained if these state-dominated oligopoly sectors are deregulated
GDP in 2010
5.35 trillion USD
GDP pc in 2010
$4,000 USD
Growth rate of GDP pc recently
8% annually for more than 25 years
faster, longer than any other economy in history
Growth at end of 2007
Five reasons China is at the peak if its growth potential (2003-2010)
1. period of max structural change (ruural-urban migration). Nearing point where it is 50% urban
2. Young adult population bulge. Dependency rate at lowest possible
3.Gov has channeled resources into investment
4.infrastructure and heavy industry are growing together (like steel, construction equipment)
5.Accelerated foreign trade 2003-mid 2008
When did China join the WTO
Dec 11, 2001
What has been the shift of foreign trade in 2009?
Has shifted from a positive growth factor to a negative growth factor in 2009
When do we expect super-fast growth to end?
Wont last beyond 5 to 10 years
Growth of labor force begins to slow (effect of birth-control policies)
Rural-urban migration draining country side --> structural change will slow
The Three Administrations with distinctive approach to Econ Transformation
1980s: Deng Xioping, Zhao Ziyang, Hu Yaobang
1990s: Zhu Rongji, Jiang Zemin, Deng Xiaoping
2000s: Hu Jintao, Wen Jiabao
where is the geographic concentration of the population?
94% west of the Aihiu Tengchong line
Traditional Economy
*highly productive age
*labor intensive
*supported extended pop growth
*commercialized : network of markets, use of money, contracts, enforcement of contracts
*Bottom heavy
In what way is traditional China characterized as a "bottom heavy economy"?
*few large companies
*tied together with markets
*fluid, entry/exit, social mobility
Early successes of the PRC Gov
(Post 1949)
*controlled inflation
*rehabilitated industry
*rapidly increased investment
*rehabilitated age
*retained key capitalists, scientists, intellectuals
*distributive land reform (completed by 1952)
*began gradual transition to socialist system
When was the "high tide of socialism"
Khruschev's secret speech
Feb 1956
Against the "reckless advance," criticized the "cult of personality"
Anti-Rightist Campaign
*Beings June 1957
*Nearly 1 million non-communist party intellectuals are targeted and denounded, and 300,000 sent to work camps or prision
Made the Great Leap Forward possible
Great Leap Forward
*intensification of the "big push" strategy
*increased production targets
*millions move from ag to industry
*communes created
*industry "walking on two legs"(combining large, modern and small-scale indigenous technologies)
*abolished material incentives
When did soviet advisers leave china?
summer 1960
When did China internally accept that the GLF was a catastrophe?
the end of 1960
"Policy Readjustment" following GLF
*Investment cut by 3/4
*20 mn sent back to countryside
*communes shift to 3 tier structure
*emphasis on consumption
*Mao on sidelines
Construction of Third Front
Begins in August 1964
Four Modernizations
Zhou Enlai mentions this in 1964
Cultural Revolution
begins in summer 1966, with students overthrowing capitalist roaders
Distinct Maoist Econ system
*militarization of the economy
*investment concentrated in 3rd front
*No material incentives ("Austerity socialism")
* Decentralized operation of economy (rural industries are supported)
*No market driven labor mobility
Reform Era
*Begins in 1978
*3 distinct periods:
1. Early Reform- break down planned economy and institute market economy
2. 1990s - establishment of market economy
3. post 2003 - rebuild social services, strong industrial policy
First Era of Economic Reform
*Zhao Ziyang
*contracting of rural lands
*enterprise autonomy
*dual track system ?
*special zones
Retrenchment and Paralysis
Tienanmen Square
Second Era of Economic Reform
*very dynamic
*fiscal, foreign trade reform
*WTO membership decided in 1999
Third Era of Economic Reform
Post 2003
*Consolidation of Market reform and rebuilding of state
*unimpressive reform breakthroughs
Demographic Transition
*process from low growth to high grown, bath to love growth, as death rates and then birth rates decline
Mincerian Regression
Wage = f(age, experience, edu, other vars)
Other vars might include city, occupational choice, communist party membership
Has climbed steadily
GINI 1983 = 0.28
GINI 2003 = 0.45
Rural poverty
Chinese poverty line is lowest in relation to $1 a day WB standard
Using chinese line, rural poverty decreased from 250 mn in 1978 to 125 mn in 1985, to 15 mn in 2007
Deng Xiaoping's perception: THE BASIS
"Sino-American relations cannot be too ______________, because of their _____________ __________________; it can neither be _________________ ______, because of their ________________ interests.
fundamental differences;
exceptionally bad;
Which U.S. administration did Sino-US relations started improving China became communist?
Nixon Administration
The __________________ incident changed the equation of US-Chinese relations.
September 11 attack
Obama Doctrine
- American "pivot to Asia" due to China's territorial disputes
- redirect 60% of US military forces to Asia-Pacific
Bilateral trade hit around US$__________ by 2013, up from US$____________ ________ decades ago.
500 billion; 1 billion; 3
China is an important __________________ ________ for many American companies.
Manufacturing base
In USA, ___________________ is able to flourish because of China as manufacturing base which turns US's _______________ into _________________.
Another term that relates to Sino-US close economic interdependency.
The significance of US's creation of the debt bond with China.
It allowed China's large accumulation of currency reserves to be channelled into U.S. govt. securities, which kept interest rates low for U.S.
U.S exports to China are up nearly ________% in value by ________ since _________, despite financial crisis.
5 export categories that China increasingly demands from U.S.?
Snack foods:
diary products;
beer and wine;
Us-made pharmaceuticals
China is the US' largest trading partner in "____________ __________ products", selling at US$________ billion worth in ________ alone.
"advanced technology":
A majority of Americans, ______% according the _______ survey, wants U.S. to build a stronger rela. with China.
Pew Survey
- 2013
- World's largest international maritime exercise
- Sign of Sino-US's higher level of cooperation on military exercise
US-China Strategic and Economic Dialogue
- Formed in 2009
- focuses on civil issues
US-China Clean Energy Research Centre
- Established to work on improving green technology
Deng Xiaoping: "There are ______________ limits to better relations and bad relations."
DXP: "The major direction of Sino-US relations is till influenced by _____________ considerations."
The development of _________ technology and ___________ to compete in their dominance in W_________ P__________ has led to a possible ________ ________.
Western Pacific;
arms race
China's inherent a _____________ s_____________ state that suppressed ____________ _____________, an ______________ to western values.
Authoritarian Socialist state;
Individual Rights;
According to a Pew Survey, _____% of Americans say China as a serious problem, though only _____% saw it as adversary.
China rejected a $_______b bid from the C_____-C_____ Company for the H__________ J________ Group on the grounds that it will be a ___________ _____________.
$2.4 billion;
Coca Cola;
Huiyuan Juice Group;
virtual monopoly
In 2013, it is reported that _____% of US firms in China reported that they are cyber attacked.
"Strategic Encirclement"
US's to reinforce its strategic ties with China's neighbours like SK, Japan, ASEAN and even India.
Political differences and ideology have manifested itself to affecting ____________ interests.
The Obama Doctrine
-ensure U.S. leadership in a polycentric system in int. rela.
- Use of force e.g. drones
- creation of a smaller, more agile U.S. military spread across Asia, the Pacific, and the Middle East
The most important fear of China towards the Obama Doctrine
That it is an attempt to constrain its 'rise'.
US-Japan Defense Treaty
- Over Diaoyu and Senkaku Islands
- The islands fall under a treaty which obligates the U.S. to defend Japan if it's attacked.
Taiwan Straits crisis
U.S. defends US$6.4 billion weapon sale to Taiwan
Why is U.S. so upset with China's "unfair trade practices"?
It have cost billions of dollars worth of deficits for the U.S. economy.
China's currency have been undervalued by as much as _____% to _____%.
U.S. loose M________ P________ will erode the value of China's holdings of __________ within its vast ____________-______________ reserves.
Monetary Policy;
ENGAGEMENT IN _________ _________
2009, Washington angered Beijing by slapping a _____% duty on ________ of about US$_____b of Chinese-made _______.
What is the reason for U.S. support for Taiwan?
They helped Taiwan on a political and moral obligation to a former Cold War ally.
By supporting Taiwan, what is U.S. going against that is highly desired by China?
The One-China Policy

What raw material is the South-China Seas are strategic navigational routes to that are so critical to China.
To oil supplies from the Middle East.

What did U.S. assure Japan with reference to peaceful dispute settlement being part of their "national interest"?
"The Senkakus are covered by American security guarantees."
• Mao Zedong
the peasant revolutionary who had led the Chinese communists in war against japansense and in Civil war, pronounced a basic communist victory, proclaimed a new regime, and promised a new era for china
• After Maos death, successors have denounced
Maos ideals and made economic growth the nation's highest priority.
• Socialist- market economy
with a place for investors, private entrepreneurs, and stock markets.
• Chinese leaders have stacked their legitimacy on the
performance of this new economy
• The regime tolerates no
open challenge to the communist Party's monopoly on political power
• New policy in china includes growing acceptance of
the private sphere and new official tolerance of political apathy.
The government does not require you to be actively supportive of policy as long as
you don't not actively oppose it.
• Mao's successors are committed to political institutionalization for political reasons:
to safeguard against the illogical dictatorship and disruptive politics of the Maoists past. The effort has led to better-crafted laws, more assertive representative assemblies and popularly elected grassroots leaders.
• China is the worlds 2nd largest
chinas biggest problem is
• Land is not privately owned in china, but
contracted to farmer. Chinese government sometimes takes back land causing rural riots which is suppressed by great
• Growing wealth gap fuels perception of
official abuse and has great potential to ignite social instability
• China will be replaced in 2012 by a more
educated, less ideologically rigid, diverse, and less technocratic "fifth generation"
• China was ruled by the same system for 2 millennia. There was an
an emperor and a unique bureaucracy of scholar-officials, found through examination of Confucianism principles
• Confucianism=
harmony, no distinction between state and society. Emperor at top of hierarchy and loyalty a utmost priority.
• Qing rulers were unable to uphold their political authority and maintain territorial integrity in the presence of
large-scale domestic rebellion and foreign economic and military encroachment.
Quig had • Struggle for national sovereignty because
western powers were constantly trying to force china into territories and Japanese military invasion/occupation
Quig • Struggle for Chinese peasantry,
poverty in countryside due to socioeconomics conditions of exorbitant taxes, high rents, frequent floods, bad credit.
in 1920's • Nationalist party does not help Chinese peasantry, instead causes
runaway landlordism and replaces mutual obligations with economic ties.
• Nationalist and Communist party unite to beat -------- and then
Japanese, then nationalist turn on the communist and massacre 80 percent of them.
• Maos communist revolution
providing leadership for rural revolution and building a guerrilla red army to surround the cities with the countryside
Why was Mao communist party able to come into power?
• 1. Nationalist force communist, Mao, on long march into Yan'an where planning begins for rural revolution
• 2. When the Japanese try an invade again in 1939, Mao, offers to end civil war so the country could unite and beat the Japanese. Nationalist are wary of the offer, and the country is extremely anti-Japanese. This leads to people liking the communist party for trying to save China, above party politics. After Japan is defeated in ww2, new civil war develop, however, the communist party wins this time.
o 3 stages of Chin from 1949-today
1.) Chinese copy experience of the 1st and most powerful communist state, Soviet Union (5 year plan, INDUSTRY)
2.) Great Leap Forward= politics in command
3.) After Maos death country reject Maos ideological constraints and becomes what it is today. Lead by Deng Xiaoping
1.) Chinese copy experience of the 1st and most powerful communist state, Soviet Union (5 year plan, INDUSTRY)
(5 year plan, INDUSTRY)
o Soviet give aid through technology
o Land reform
o Thought reform
Hundred flowers campaign, allow intellectuals to voice opinion
After negative opinions, campaign turns to bad weeds, everyone is silenced
o Purge rightest/ intellectuals
Why does china and soviet split
o Wont liberate Taiwaian
o Wont help develop chinas nuclear program
o Relaxation of soviet hostility with USA
2.) Great Leap Forward, china introduces own
model of communism
2.) Great Leap Forwardo Labor-intensive mass mobilization of peasants to
increase agricultural output by building irrigation facilities
2.) Great Leap Forwardo Organization of primitive production process to
to give inputs to agriculture (chemical fertilizer plants and primitive steel furnaces to make tools) without taking resources from industry
2.) Great Leap Forwardo Mao wanted to increase collective farming to
increase production and have more control
2.) Great Leap Forwardo Bejing set targets/goals of local leaders to
accomplish on the farms. This leads to mass competition and exaggeration of numbers to meet bejings goals. leads to great famine
After we retreat from the great lead forward we have a
o Cultural revolution- Mao basically unleashes anarchy on his country. Encourages students to form red guard groups and leads to a lot of persecution. The country splits between the radicals and the economic modernization
Social condiitons change after MAO
• More Chinese live in the cities
• There is not a lot of arable land in china because of agriculture decollectivzation and land is used for burial grounds/boarders/bigger houses
• 92% of china is ethnically Han but there are 55 recognized ethnic minorities. Causes a lot of conflict, i.e. Tibet. These territories are important border regions so large armies constantly surrounding these minority lands.
• Han share the same Chinese written language, a unifying force for more than 2 millennia
design feature of party-state
• Lennin believed people were not smart enough to look over their own interests therefore they should not be able to vote. Communism should focus on economic prosperity, absence of social conflict, and minimal government; guardianship and hierarchy
• Chinese communism has 3 things
guardianship, hierarchy, and mass line
Guardianship, • the party bases its claim to power from
historical best interest, led by an elite class who have understanding of historical laws of development
Gurardianship• Only 6percent of Chinas population is a part of the
communist party
• Mass line (Mao theory) effects guardianship because
the party leads, but its leadership is not isolated from the opinions and preferences of the mass public
• Mass line encourages grassroots leaders to
remain close to the ordinary citizens so the party can transform scattered and unsystematic ideas of the masses into correct ideas and propagate them until the masses embrace them as their own.
• The communist party is organized around a
hierarchy of the party congress and committees extending from the top of the system down to the grassroots.
• Lower party organizations are subordinate to
higher party organizations and individual party members are subordinate to the party itself.
• Democratic centralism
party leaders must provide opportunities for discussion, criticism, and proposals in party organization as part of the process of deciding important issues or making policy.
• Centralism is never sacrificed to
• Party members may have their own opinion, and voice them through the correct channels, but they are not free to
act to promote these views
• Communist party constitution states any small group activity within the party is a
violation of organizational discipline.
Ideology in china today is
less prominent and less coherent but not irrelevant.
• Government structures are duplicated at
the party level
• In principle there is division of labor the party and government structure but in practice
the two overlap and party dictates over parallel government structures.
• National peoples congress=
chinas legislature
state council=
exercise executive function
• The public elects the lower officials who then
then elect higher officials and then those elect higher officials, it's a chair to the top for government. However, does not affect party appointments.
Nationals People's congress
• About 3000 NPC members (meet only once a year for 2 weeks) of which 159 are permanent(meet frequently throughout the year)
• As of 2010 law the npc must
rural and urban have equal representation in NPC.
NPC can
amend the constitution, amendment of legislation, approval of economic plans, and appointments of top government officials.
NPC Standing committe
meets regularly, and plans agenda for annual NPC plenary session, where full NPC (3,000 members) ratify legislative actions.
• NPC has become more assertive in recent decades, it is evident in a
in a increase in delegate motions and dissenting votes.
State Council
• State Council is selected by the premier who receives nominations by the NPC
• Executive committee of State council meets twice a week report on issues
• Chinese laws are extremely vague so the state council provides regulations to make them effective.
• Communist party has direct leadership over
government and legislative functions
• All members of the communist party come together (70% NPC) and offer "hopes" for the upcoming session

. i.e. how open or NPC debate should be
• Party selects
president, vp, premier, and cabinet members, however, there has never been more than one nominee and nominees are decided in the part meeting before NPC assembles.
• Communist party can veto anything from
The government
• Any laws submitted to the NPC or standing committee must have
prior approval by the party
• China is a executive-led government, but with an important difference
: leadership by the communist party.
• Judicial authority rests with the
supreme people's court (center) and the local people's court (below).
• Supreme people's court is responsible to the
• Lower courts are responsible to
peoples court
• Procuratorates
they supervise criminal investigations, approve arrests, and prosecute cases.
National party congress main function
to ratify important changes in broad policy orientation already decided by more important smaller party structures. Major historical event in the publics eye
Nation party congress sessions last
1-2 weeks
who elects who in the party
npc-->central committe-->Plitburo-->Politburo committee
central committee
• Chinese political elite
• exercises the powers of the congress between sessions.
• Central committee does NOT initiate policy change
• Central committee does approve changes in policy or leaders.
• Central committee helps endorse party policy
• Central committee elects the Politburo
• Is the top political elite
• No more than 2 dozen members
• Overseeing policymaking in some issue area.
Politburo standing committee
• The Politburo Standing committee are the core political decision makers in China, presiding over a process that concentrates great powers at the top.
• Top party leader is
general secretary
• In communist systems there is a problem of succession because there is no
official 2nd in command to take over is something happens to leader. Deng changed that after Maos death
Party bureaucracy
• The party has its own set of bureaucratic structures, managed by the secretariat.
• Secretariat provides staff support for the Politburo, turning decisions into instructions for subordinate party departments
• Most important mechanism for communist party to exert control over officials
Nomenkaltua System
Nomenkaltua System
• Refers to the management of all government and party officials of even moderate importance by a committee
• Party committees control (Nomenkaltura system)
appointments, promotions, transfers, and removal from office
• Party committees are extremely hierarchical, each committee directly
manages all officials in one position down in the hierarchy.
nomenkaltura system ultimetly ensures
the central committee and Politburo are in charge.
• Communist party exercise leadership over officials by
party membership penetration in political structures.
• People, in all work places including government officials, are required to
meet up for party committees or general branches and are obliged to observe inner party discipline. Helps communist party remain a active force in government structures
• Party core groups are formed in
government structures only
• Head of the party core groups are typically head of the structure. i.e
government minister are heads of the respective ministry party core group
• Basic-level party organizations are mechanisms to
promote unity and discipline under party leadership within political structures.
• Party core groups are mechanisms to promote
party leadership over leaders in their government host structures.
Elite recruitment
• Must have membership in communist party
• Nomenklatura system economic performance
Chinese version or rule by law
• There are laws
• All are equally subject to them
Socialist Legality
• Abandon laws
• Abandon legal professions and legally trained people
• Defense lawyers disappeared, party committees took over
why was legal reform needed
• Need to establish legitimacy by righting past wrongs
-Investigating and reversing verdicts of uncertain legality issues during cultural revolution
• Wanted to restore public order and stability after chaos of Mao and express commitment to system-building as a substitute for random policy.
what was hope to gain from legal reform
• Hoped legal reform would encourage economic investment and growth by prompting predictability.
what exactly happened from legal reform, what changed
• Criminal laws were finally established
• Chinese government spent money to educate public on equal right, led to increase of lawsuits
Criticism of legal practices
• Too much capital punishment
• Court cases only happen if there is enough evidence to prove someone guilty. Defendant only gets public defender 10days before trial
• Several thousand political prisoners from counter revolution
Political Socialization
• China has one of the world's most extensive systems to control mass media, especially material considered politically subversive.
• Great Firewall, internet censorship blocks many internet sites.
Lost generation=
generation which missed out on education because of cultural revolution
Political Culture
• Chinese never talk about politics with others
• More political interest is seen amongst men, the more highly educated, and those with higher incomes
• Political knowledge is extremely high
chinese reject
democratic values
• PRC supports the statement everything should be left up to the
virtuous leader
• Urban Chinese are more supportive of
democratic values than mainland Chinese
what are top prioties in china for poltical values
• Economic growth ,social stability and national strength
what are low pritoites in china for poltical values
Political rights are assigned lower priorities.
No more Mass Participation
• No longer classified by class or political mistake labels.
• Political indifference is no longer risky.
Assumption that economic growth is predicated on order and stability
• Avoid mass mobilization campaigning.
• Mass mobilization campaigning, used during mao years, intensive large-scale disruptive group action implemented by grassroots leaders. Usually against opposition forces, enemies
Changes in economic relationships require adjustment in political relationship
• Encouraged opinions through legal channels. i.e. hotlines to report abuse
china • Winning signifies popular support to
communist party while losing signifies a problematic situation with the mass public
• Direct election of deputies to county level
congresses, mandated a secret ballot and the number of candidates must be 1.5 times the number of deputies to be elected
Village Committees
• Autonomous mass organizations of self-government
• Elections for village leader, usually vetted candidates by communist party
Unacceptable political participation: Four Fundamental principles , things you CANT debate
1. Thee socialist road
2. Marxism-leninism-mao Zedong thought
3. The peoples democratic dictatorship
4. The leadership of the communist party
• Protest show that mass political participation can neither be
contained within official channels nor deterred with a better material life
people in china protest for
more socalist reform
china democracy movement-
leads to political reforms but must not effect fundamental 4
• Tiananmen massacre
people protesting, including elites. Many of them killed or imprisoned. People blamed it on to much rapid reform so reform is slowed down immensely.
China interest aggregation
aggregation is monopolized by the communist party
• china Interest articulation takes place in
in china • Most ordinary citizens engage in
interest articulation without interest aggregation
satellite parties in china
8 parties tolerated by communist party
mass organizations in ...... and ex
i.e. women's foundation, aggregate interests. Main goal is not aggregate but to propagandize relevant party policy for these groups.
NGOs in china usualy focus on
• Policymaking is less concentrated and more
institutionalized than ever before.
top tier in china
are the leaders at the apex of the party, politburo and its standing committee.
• The most through consideration of policy options and shaping of policy decisions occur at
the second tier- within leading small groups (LSG)
• Leading small groups must preside over
policy research, formulation of policy proposals, sponsorship of policy experiments in the localities, and drafting of policy documents.
• LSG's link
top decision makers to bureaucracies and bridging institutional systems
• Fragmented authoritarianism
on one hand authority is organized through hierarchy and parallel structures. On the other hand, the central ministries are subordinate to the their respective governments.
• china Authoritative communication is channeled from
"lines" from top to bottom
china governments to their departments
horizontally 'pieces"
• The sorts of authority only come together at the level of state coucnil. • Therefore, local governments have
2 bosses plus nomenkalture, party boss, causing blockage of policy processes.
third tier
relevant party departments and government ministries.
• Third tier gathers all the
information and drafting policy documents
From agenda setting to implementing regulations 5 main stages
1.) agenda setting
2.) interagency review, 3rd tier job, approve a draft of policy and opinion solicitation.
3.) Politburo approval
4.) NPC review, debate, amendments, and passage.
5.) Implementing regulations
• To help monitor policy implementation Chinese use
policy performance indicators
• Information is distorted to make policy implementation seem
• Some policy's have priority
usual when top leaders make of a point of paying attention and speaking at conventions, or creating a lsg to monitor
in china little outside
pressure in formulating poliy
• Often considered the most serious problem of china
• Because there is a rift between corruption control under rule of law and principles of communist party
chia has the worlds 2nd largest
economy in ppp temrs
why does china have ecnomic growth
opening up the economy to the world outside, marketizing the economy, and developing authority downward to create incentives for locals to pursue their own economic advancement.
whats chinas key economic strategy
• Chinese economy is dependent on
excessive investment and export demand
• To combat recession Chinese government had HUGE
stimulus package
• The Chinese save "too much" causing
low household consumption
• Stimulus somewhat reversed
government non-intervention with economic sphere
• About 8 to 12 percent of Chinas gdp comes from
enviornmental degredation
• Local government priorities always dominate
enviornmental factors
Population control
• Legal requirement of late marriage
• Requirement of insertion of an intrauterine device after a first birth, and requirement of sterilization after 2nd birth for one partner
• Has led to less girls in china. 103 to 107 males
• Hong kong rules under one country two systems. Enjoys many freedoms other Chinese do not have
Contract Responsibilty System
1979. Farmers can retain surplus over individual plots of land rather than farming wholly and exclusively for their collector.
- given a set quota of goods to produce and compensated for meeting it, to go beyond this barely has a reward.
- eventually, peasants were given reduced quotas, the food produced beyond the quota could be sold in the free market, unregulated prices.
China's Generation Y
Chuppie Generation
Emerged from the one-child policy
Another SEZ opended early
The entire island is an SEZ
Residence, households. Labor in Shenzhen were migrants and didn't have Hukou's becasue many people were not permanently residing in the community.
Hu Jintao
1942-. One of Deng Xiaoping's successors who did not try to diverge from his economic policies since they were successful
Jiang Zemin
1926-. One of Deng Xiaoping's successors who did not try to diverge from his economic policies since they were so successful
"Socialism with Chinese characteristics"
Deng Xiaoping implimented this. Interpretation of Chinese Marxism reduced the role of ideology in economic decision-making and move toward a perspective where policies were decided upon proven effectiveness.
Special Economic Zone (SEZs)
A geographical region that operates according to economic laws that differ from a countries typical economic laws.
Goal: increase foreign investment
Why Successful: special tax incentives granted to enhance foreign invetsments, greater independence in int'l trade activity.
SEZs economic characteristics (4 principles)
- Construction relied on attracting and utilizing foreign capital. Dependent on attracting foreign investment.
- Primarily economic drivers were sino-foreign joint ventures and partnerships. Also, some wholly foreign owned enterprises.
- Products were produced for exports primarily
- Economic activity were driven by market demand primarily
Where the first SEZ was established in 1978. It is in Guangdong province. This site was singled out by Deng Xiaoping as the first experimental site of developing capitalism in Communist China due to its proximity to Hong Kong.
One Child Policy
1979. Implemented by Deng Xiaoping to control population and benefit the economy
Sino-VIetnamese Conflict
1979. China launched an attack against Vietnam becasue China was aiding Vietnam but wasn't getting respect, and Vietnam turned away from China by signing a treaty with the USSR. They wanted to "teach Vietnam a lesson"
Pudong New Area
1990. PRC opended Pudong as an SEZ for overseas investment. This area was allocated special privilages: reduced customs duties and income taxes and the state permits the zone to allow foreign bussiness people to open financial institutions and run tertiary industries, the state gave Pudong permission to set up a stock exchange, to expand its examination and approval authority over investments, and allow foreign funded banks to engage in business using China's own currency.
Sino-British Joint Declaration
1984. Hong Kong was to be handed back over to the PRC in 1997. Deng agreed that the PRC woul dnot interfere with Hong Kong's capital system.
Xiao Huangdi
"little emperor" - littel emperors. Generation Y have access to more things.
East Asian Tigers
Four Little Dragons
Hong Kong, Singapore, S. Korea, Taiwan...reforms were introduced by these countries
Treaty of Peace and Friendship
1978. Signed between the PRC and Japan and it bettered Sino-Japanese relations
"One country-two systems"
This is an appraoch that the PRC had as it's framework becasue it meant that China could absorb its former colonies that have developed a different political and economic system and still have a compatible relationship with them and they don't have to interfere with them.
Currency. By 1999 GDP of Pudong amounted to 80 billion Yuan (10b US) and the industrial output value was 145 billion Yuan (18b US)