An Introduction to the Chinese Economy

This comprehensive overview of the modern Chinese economy by a noted expert from China offers a quality and breadth of coverage. In this book, the author provides an introduction to China's economy since 1949 and original insights based on his own extensive research. The book sets out to analyze and compare the operational mechanisms of the Chinese economy between the pre- and post-reform periods and through national, regional and local dimensions. Both positive and negative consequences of the Chinese economic transformation have been clarified. A multiregional comparison of the Chinese economy is conducted in terms of natural and human resources, institutional evolution, as well as economic and social performances. At last, some key issues relating to the inherent operational mechanisms of and the dynamic patterns of the Chinese economy are also discussed.

List of figures ix List of tables ix List of abbreviations x Acknowledgments xi Notes from the author xiii Chapter 1: A brief history of China 1 The origins of the nation 2 Rise and fall of the empire 4 China in the new millennium 11 Chapter 2: Spatial and administrative divisions 15 Administrative divisions 16 Great regions 20 Geographical belts 21 Southern and northern parts 23 Ethno-cultural areas 24 Chapter 3: The foundation of the Chinese economy (I) 29 Land and water 30 Minerals and energy resources 35 Environmental quality 42 Policy implications 50 Chapter 4: The foundation of the Chinese economy (II) 55 Population 56 Labor and education 61 Technological innovation 67 Cultural influence 70 Chapter 5: Political and economic systems 79 Party versus state 80 State and market 84 Market-oriented reform 89 Enterprise management 92 Finance and banking 99 Future perspective 103 Chapter 6: Economic growth and social justice 109 Economic growth 110 Regional economic differences 114 How (un)equal is the Chinese society? 121 Poverty and social security 125 Chapter 7: International economic engagement 129 Historical background 130 China opens its door 133 Foreign direct investment 140 Foreign trade 146 Chapter 8: Studying Chinese economics: Key issues 153 Why China has a collectivistic culture 154 Why China adopted a gradual economic reform 160 Why the Chinese economy cannot be spatially optimized 167 Why China’s long-term growth isn’t sustainable 172 Appendixes 177 A historical chronology 177 China’s cultural similarity with your country 184 Bibliography 191 Index 197