Transforming China: Economic Reform and its Political Implications PDF
Preview Transforming China: Economic Reform and its Political Implications
Transforming China Economic Reform and its Political Implications Wei-Wei Zhang Studies on the Chinese Economy General Editors: Peter Nolan, Sinyi Professor of Chinese Management, Judge Institute of Management Studies, University of Cambridge, and Fellow of Jesus College, Cambridge, England; and Dong Fureng, Professor, Chinese Academy of Social Sciences, Beijing, China This series analyses issues in China’s current economic development, and sheds light upon that process by examining China’s economic history. It contains a wide range of books on the Chinese economy past and present, and includes not only studies written by leading Western authorities, but also translations of the most important works on the Chinese economy produced within China. It intends to make a major contribution towards understanding this immensely important part of the world economy. Titles include: Thomas Chan, Noel Tracy and Zhu Wenhui CHINA’S EXPORT MIRACLE Sarah Cook, Shujie Yao and Juzhong Zhuang (editors) THE CHINESE ECONOMY UNDER TRANSITION Xu Dixin and Wu Chengming (editors) CHINESE CAPITALISM, 1522–1840 Christopher Findlay and Andrew Watson (editors) FOOD SECURITY AND ECONOMIC REFORM Samuel P. S. Ho and Y. Y. Kueh SUSTAINABLE ECONOMIC DEVELOPMENT IN SOUTH CHINA Kali P. Kalirajan and Yanrui Wu (editors) PRODUCTIVITY AND GROWTH IN CHINESE AGRICULTURE Bozhong Li AGRICULTURAL DEVELOPMENT IN JIANGNAN, 1620–1850 Alfred H. Y. Lin THE RURAL ECONOMY OF GUANGDONG, 1870–1937 Dic Lo MARKET AND INSTITUTIONAL REGULATION IN CHINESE INDUSTRIALIZA- TION Jun Ma THE CHINESE ECONOMY IN THE 1990S Guo Rongxing HOW THE CHINESE ECONOMY WORKS Sally Sargeson REWORKING CHINA’S PROLETARIAT Ng Sek Hong and Malcolm Warner CHINA’S TRADE UNIONS AND MANAGEMENT Michael Twohey AUTHORITY AND WELFARE IN CHINA Wang Xiao-qiang CHINA’S PRICE AND ENTERPRISE REFORM Xiaoping Xu CHINA’S FINANCIAL SYSTEM UNDER TRANSITION Yanni Yan INTERNATIONAL JOINT VENTURES IN CHINA Wei-Wei Zhang TRANSFORMING CHINA Economic Reform and its Political Implications Xiao-guang Zhang CHINA’S TRADE PATTERNS AND INTERNATIONAL COMPARATIVE ADVAN- TAGE Studies on the Chinese Economy Series Standing Order ISBN 978-0-333-71502-4 (outside North America only) You can receive future titles in this series as they are published by placing a standing order. Please contact your bookseller or, in case of difficulty, write to us at the address below with your name and address, the title of the series and the ISBN quoted above. Customer Services Department, Macmillan Distribution Ltd, Houndmills, Basingstoke, Hampshire RG21 6XS, England Transforming China Economic Reform and its Political Implications Wei-Wei Zhang Senior Research Fellow Modern Asia Research Centre Geneva University, Switzerland and Professor College of the Humanities Fudan University, China First published in Great Britain 2000 by MACMILLAN PRESS LTD Houndmills, Basingstoke, Hampshire RG21 6XS and London Companies and representatives throughout the world Acatalogue record for this book is available from the British Library. ISBN 978-1-349-40847-4 ISBN 978-0-230-50635-0 (eBook) DOI 10.1057/9780230506350 First published in the United States of America 2000 by ST. MARTIN’S PRESS, INC., Scholarly and Reference Division, 175 Fifth Avenue, New York, N.Y. 10010 ISBN 978-0-312-22912-2 Library of Congress Cataloging-in-Publication Data Zhang, Wei-wei, 1957– Transforming China : economic reform and its political implications / Wei-Wei Zhang. p. cm. Includes bibliographical references and index. ISBN 978-0-312-22912-2 (cloth) 1. China—Economic conditions—1976– 2. China—Economic policy—1976– 3. China—Politics and government—1976– I. Title. HC427.92.Z437 1999 338.951—dc21 99–39486 CIP ©Wei-Wei Zhang 2000 Softcover reprint of the hardcover 1st edition 2000 978-0-333-73591-6 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1P0LP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. 10 9 8 7 6 5 4 3 2 1 09 08 07 06 05 04 03 02 01 00 For Hui-Hui and Marco Yi-Zhou This page intentionally left blank Contents Acknowledgements viii List of Tables x List of Abbreviations xi Introduction 1 Part I Economic Reform: an Overview 5 11 Rural Reform 9 12 Urban Reform 12 13 Macroeconomic Reform 16 14 Opening to the Outside World 20 Part II Economic Reform: Distinctive Features 27 15 Dual Goal: Development and Transition 29 16 Soft and Hard Reforms 39 17 Dynamic Gradualism 46 18 Ideological Reorientation 54 19 Reform Leadership 63 10 The Role of the Overseas Chinese 75 Part III Political Implications of Economic Reform 83 11 Changing Social Structure 85 12 Informal Liberalization 98 13 Shifting Values 118 14 Corruption 132 15 Regionalism 141 16 Political Reform 148 17 The Chinese Economic Area 163 18 International Implications 173 Conclusion 182 Notes 189 Bibliography 202 Index 212 vii Acknowledgements It is impossible for me to acknowledge fully the intellectual debt owed to many individuals or to mention all who assisted. But I should thank in particular those individuals, some of whom are also personal friends, who shared their perspectives with me on various issues dis- cussed in the book. These individuals include Wang Huning and Jiang Yihua of Fudan University, Wu Jinglian, Lu Baipu, Zhang Xiaoji and the late Sun Shangqing of the Development Research Centre under the State Council, Dong Furen, Fan Gang and Zhang Yunling of the Chinese Academy of Social Sciences, Wang Daohan, ex-Mayor of Shanghai, Ding Xinghao of the Shanghai Institute for International Studies, Xiao Gongqin and Xu Jilin of the Shanghai Normal University, Li Zhaoxing and Sha Zukang of the Foreign Ministry, Yang Chengxu of the China Institute of International Studies, Zhang Huali of the Ministry of Culture, Jiang Huiling of the Supremie People’s Court, Meng Xianzhong of Jilin University, and Wu Zhao and Lu Jiebiao of the Wuxi People’s Congress, Liu Yonghao of the Hope Group, David C.W. Tsui of Hong Kong’s Asian Reviewand, in Taiwan, Chiao Jen-Ho of the Straits Exchange Foundation, Su Chi and Lin Chong-Bin of the Mainland Affairs Council and Shaw Yumin of the Institute of Inter- national Relations. My thanks also go to quite a few individuals who have asked not to be named. I would like to express my particular gratitude to Macmillan and Peter Nolan of Cambridge University, as co-general editor, for agreeing to publish this book in the Macmillan Studies in the Chinese Economy series. I am also grateful to the Programme for Strategic and Inter- national Security Studies (PSIS), Geneva, and its Director Curt Gasteyger and his assistant Frédéric Grare for inviting me to present my research on the topic at a symposium held in 1996, ‘From Cold War to Cold Peace: World Politics and Economics’, and for publishing my lecture notes in the form of an occasional paper. My appreciation also goes to the Emirates Center for Strategic Studies and Research (ECSSR) in Abu Dhabi for translating this paper into Arabic in 1997. Indeed, all this provided a source of encouragement to me to sustain and complete this enterprise. My special thanks go to my colleagues in Geneva and Shanghai for their encouragement and logistic support, especially Philippe Régnier, viii Acknowledgements ix Director of the Modern Asia Research Centre (MARC), Geneva Univer- sity, and Jiang Yihua, Dean of the College of the Humanities, Fudan University. I also wish to thank some personal friends, in particular, Otto Hieronymi, David T. Huang, Simon T. Liu, Huijun Li and Sijian Xiao for providing help of one kind or another with this book. I am indebted to the helpful staffs of a number of libraries, notably, the National Library of China, Beijing, the Shanghai Library, and the Humanities Library and the Library of the International Politics Depart- ment of Fudan University, and the Library of the Graduate Institute of International Studies and United Nations Library in Geneva. For publishing this book, I wish to thank sincerely Eleanor Birne and Sunder Katwala of Macmillan and my copy-editor Sally Crawford. They all rendered invaluable professional assistance in every stage of publication. The author alone, however, is responsible for any errors of fact or interpretation that may appear in the book. Finally, I have a particular debt to my wife, Hui-Hui. Every step of the way, I have relied on her understanding and support and this book is dedicated to her and to our new-born son Marco Yi-Zhou, who may well witness a transformed China in the new millennium. W.-W.Z. Geneva
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