Asian Economic Systems

Chinas Political and Economical Reforms

Lessons and Limitations

South East Asia 1.3 billion people 9.5 mill sq. kilometres Mandarin

Emphasis on Chinese ethnicity and culture. Chinas Economic growth came from family business units Loose structure and interlocking networks. Strengths: Cultural characteristics Weaknesses: Highly centralised

(cited in Chinese Business Enterprise in Asia)

Qing periods- customary laws on commercial practices Late Qing period (1911)- Guarantors were needed to cover liability

Early Years

New government under Yuan Shih KaiChambers of Commerce in control(1917) Abuse of Power- Collapse of businesses leading to the Legacy of Gongsi Major Restructuring due to industry demise 1930s- Economic nationalism of South East Asia with Chinese Merchants dealing outside of China

Chinese networks pool capital and technology, identifying opportunities to exploit capital flows e.g. Pacific Rim After World War 2 New China The Communist Government Focused on capitalism to rebuild China.

Maoism
1st of October 1949

Ideology: Maoism
Revolutionary enthusiasm and

voluntarism,

Egalitarianism and collectivization

Reform of agriculture and distribution of land to peasants

Harvest put in common and redistributed,

Measures against traditional organization of society, against corruption, against drug Questions about traditional arts and occidental influence

Mao Zedong (1893 1976)

Political stability Industrialization of the country More instruction for kids and equality between men and women Good foreign policy reinforced by alliances and treaty

Less Ideology more pragmatism

Focus:
Political and Social Stability Economic Productivity Public and Consumer Welfare

Central control and Market-oriented reforms A number of reforms were made.

The Four Modernizations

Agriculture Industry Science and Technology National defense

Deng Xiaoping

-Freedom of association,
-Creation of independent student labor unions

- Transparency on the income of executives and their family

Very first big manifestation organized

Zhao Ziyang

Li Peng

Leader of the party in favor of more reforms Followed by: Intellectuals who want an acceleration of reforms.

Prime minister in favor of conservation Followed by: Workers who want to go back to the ancient communist system.

1992

Use of socialist market economy

monetary and fiscal reforms

1993

Independence of banks

1994

Entrance in the GATT refused

 Return to original ideology

1995

Entrance in WTO as an observer

Privatization of companies

1997

Hong-Kong is given to China by UK

2001

Adhesion to WTO

25%

20%

21st Century Results!

1994 2003

15%

10%

5% Real estate, 14% 0% Minerals Chemicals Metals Fuel Agriculture Other manufacturing, 40% Electronics, 13%

Chinas Imports

Light Manufacturing, 15% Services, 18%

Chinas FDI inflow by sector (2003)

160% 140% 120% 100% 1991 80% 1994

% of GDP

60%
40% 20% 0%

1999 2004

Foreign exchange

Bank credit

Stock market capitalization

Agriculture
1980-85 Industry 1985-90 1990-95 1995-2000 Services 2000-05

GDP growth rate

10

12

14

16

Cheng Jianping The Online Activist October 2010

Positives
-Culture -Finance based on capital flows -limited inflation -Clear objectives -Quick development of economic sectors e.g. consumption -Profits from exploitation and exportation, -Apparition of an urban middle class (15% of population) -Life level increased

Limitations
-Social and Human Rights forgotten -Environmental Issues -Standard of Quality e.g. Baby Milk -Inadequate working conditions -Unbalanced development of China -One Political party -Abuse of Power

Books

Winter, A.L. and Yusuf, S. (2007) Dancing with Giants: China, India, and the global economy, The international Bank for Reconstruction and development, ISBN [0-82136799-8] Kok-Kheng Yeoh, E. (2009) Towards Pax Sinica? Chinas rise and transformation! Impacts and implications, The Institue of China studies, Malaysia, ISBN [978-967-5148-507] Kok-Kheng Yeoh, E. (2008) Facets of transforming China: Resources, Trade and Equity, The Institutes of China Studies, Malaysia, ISBN [978-9675148-01-9] Lo, C (2006) Phantom of the China Economic Threat: Shadow of the Next Asian Crisis, Palgrave Macmillan, New York, ISBN [978-0-230-51544-4] Kok-Kheng Yeoh, E and Devadason, E (2007) Emerging Trading Nation in an integrating World: global impact and domestic challenges of Chinas economic reform, Institute of China Studies, Malaysia, ISBN [978-983-2085-80-7]

Websites http://www.dinosoria.com/chine_mao_zedong.htm http://reflexionsettemoignages.20minutesblogs.fr/archive/2009/12/14/la-republiquepopulaire-de-chine-l-apres-mao-zedong-suite4.html http://www.tlfq.ulaval.ca/axl/asie/chine3histoire.htm http://www.ladocumentationfrancaise.fr/dossiers/ entree-chine-omc/chronologie.shtml http://www.china.org.cn/echina/politicalsystem/politicalOrgnization.htm