Note: Page numbers in bold refer to tables; those in italic refer to tables and n attached to a page number denotes an endnote, with appropriate number.
abortion 101
Acemoglu, D. 22
acid rain 303; see also sulphur dioxide (SO2) emissions
Africa, Chinese investments 232
ageing population 92–3, 93, 94, 97
Agricultural Bank of China (ABC) 236, 237–8, 241
agricultural machinery 281
agriculture: absence of state involvement 171–2; fertilizer use 7; green revolution 280, 281; household contract system 57, 105; increased output 57, 170; and irrigation 6, 176–7; market liberalization 174–6; pricing policies 172–3; procurement quotas 42; productivity 9, 17, 172, 174; R&D 176–7; reform 51, 162, 178–9; share of economy 170; Socialist era failures 168–70, 174; and soil fertility 6–7; technological developments 6–7; tenancy 8–9; TFP (total factor productivity) growth 172, 174; in traditional economy 2–3, 4–5, 8; under Republic of China 32
Agriculture Development Bank 237
agriculture producer cooperatives 41, 42, 55
Ahmad, N. 199
air pollution 303, 310, 311, 313; see also carbon capture and storage (CCS); carbon emissions; sulphur dioxide (SO2) emissions
All China Federation of Trade Unions (ACFTU) 108, 111–12, 113
Allen, R. 35
Aminian, N. 219
An Zhiwen 59
Ando, Albert 131
Anti-Monopoly Law (2008) 260, 262, 265
ASEAN, trade with China 208, 212
Asian financial crisis 64, 78, 149, 150
Australia, trade with China 208, 212
Aziz, J. 128
Balazs, E. 13
Bank of China (BOC) 236, 237–8, 241
banks and banking: asset distribution 243; bank cards 252; Basel accords 247–8; city commercial banks 239; concentration 252; foreign presence in China 240-–41; foreign reserves 78, 85, 153; global competitiveness 250–51; importance of shadow banks 284; interbank loans 143; interest rates 140, 143; joint-stock banks 239; M2/GDP ratio 70, 71; and moral suasion 146; policy banks 237, 242; pre-reform 236; reforms 236–9, 241; regulatory framework 250; rural credit cooperatives (RCCs) 238–9, 242, 248, 250; size and structure 241–3, 242; SOE loan dominance 201, 237; state domination 200; state-owned banks (Big Four) 82, 87n12, 236–8; traditional native banks 17; under Republic of China 32; urban credit cooperatives (UCCs) 239, 242; see also People’s Bank of China (PBOC)
barefoot doctors 97
Bashan Steamboat Conference 59–60
Batten, J. 35
Beijing, food markets 175
Beijing Consensus 270
Blanchard, O. 335
Bo Xilai 265, 273, 280, 291, 292, 294
Brazil, trade with China 208
Britain: Industrial Revolution 34–5; Kowloon and Hong Kong ceded by China 25, 28; and Qing dynasty 25; tax-to-GDP ratio 31
British Virgin Islands 225, 227, 231, 231, 289
Brumberg, Richard 131
Brus, Wlodzimierz 59
Cairncross, Sir Alexander 59
Canada, Chinese residence applications 295
Cao Jianming 272
carbon capture and storage (CCS) 306, 319–20
carbon emissions 304, 312, 316–17, 319, 330, 332
carbon trading 311
Cayman Islands 225, 227, 231, 231, 289
CCB (China Construction Bank) 236, 237–8, 241
centralization: ancient Chinese value 281; effect on per-capita GDP 22–3, 23; and institutional rigidity 24, 26–7, 30–31, 36–7; Qing dynasty 24, 26–7, 30–31, 36–7
centrally planned economy 41–53; allocation and inventories of products 49; construction of inland factories 292; development strategy 42; enforcement mechanisms 45; financial sector 236; input-output analysis 43–4, 47–8, 48, 53n2–3; and international trade 46; and investment 45; marketing an alien concept 45; planning and implementation theory 42–6; problems in practice 46–50; reform and abandonment 50–53; Soviet Union model 42; targets 44–5, 48–9
cereals see crops
Chan, Anita 286
Chang, Morris 197
Chao, C.C. 133
Charter 08 273
chemical oxygen demand (COD) discharge 304, 311
Chen, B. 134
Chen Jiyuan 59
Chen Liangyu 265
Chen Xitong 265
CHIBOR (China Interbank Loan Offered Rate) 143
China Construction Bank (CCB) 236, 237–8, 241
China Development Bank 237
China Insurance Regulatory Commission (CIRC) 240
China Interbank Loan Offered Rate (CHIBOR) 143
China Securities Regulatory Commission (CSRC) 72, 239, 314
Chinese Academy of Sciences 59
Chinese People s Political Consultative Conference (CPPCC) 333, 339, 340
Chongqing 294; see also Bo Xilai
Chongqing Model 273
Chongqing “nailhouse” 264, 268
CIRC (China Insurance Regulatory Commission) 240
cities, administrative and economic 38n24
civil aviation 286
civil liberties 269
Cixi, Empress Dowager 25–6, 29
clothing industry 283
coal: consumption data 316, 317; pollution and 305–6, 311–12, 315, 317, 319; price 282–3; production 48; taxation 310–311
coastal areas: and foreign direct investment 226; GDP growth 33; and international trade 211; legal system 268–9; rural migration to 99–100; Special Economic Zones (SEZs) 57, 261; see also Guangdong
collectives 52, 109, 185, 285; see also township and village enterprises (TVEs)
Communist Party of China (CCP): and corruption 291, 293–4; and economic reform 72, 73n8, 183–4; foundation 26; future prospects 338, 339; ideology 42; and the law 257; and local government accountability 328–9; Long March to Yanan 26; and the market economy 62–3, 65–6, 68; party discipline (shuanggm) 266; reformers vs conservatives 280; and SOE reform 183–4, 188–9, 193
Confucianism 2, 22, 23, 37, 38n24
consumer credit 133
consumer prices index (CPI) 62, 67, 67, 141
consumer spending 50, 70, 71, 80, 82, 82, 329, 336
contract law 256–7, 258–9, 263, 283
corporate governance 196–7, 261
Corporate Law (1993) 202
corporate savings: and current transfers 126, 127; and income from properties 127–8; puzzle explained 121–2, 134–5; trends 122–6; value added vs employee wages 128–9
corporate social responsibility 197
corruption: campaigns against 292, 297; Central Commission for Discipline Inspection 266; changing nature 287–8; and Chinese Communist Party 291, 293–4; definitions 287–8, 290, 296–7; and dual-pricing system 61–2; and economic growth 289; future prospects 341; and grey income 70, 287; and income gap 85; infrastructure projects 72, 291; judicial corruption 263; military 292; prosecutions 265, 291; public concern 116n18, 262, 291–2; Qing dynasty 24, 30, 37; and residence and money transfer abroad 295; transparency the key to reform 297
CPPCC (Chinese People’s Political Consultative Conference) 333, 339, 340
crime 257, 258, 262; see also corruption
crops 3, 6–7, 163, 168, 170, 175–6
CSRC (China Securities Regulatory Commission) 72, 239
Cui, L. 128
Cultural Revolution 47, 51, 56, 91, 117n24, 160–1
currency, in traditional economy 5, 10, 13–14
Dai Yuanchen 59
deaths: causes of 96–7; mortality rate 90–92, 91
deBrauw, A. 174
decentralization 22–3, 23, 34, 184
Deng Xiaoping: economic reforms 47, 56, 57, 61, 78, 87n3, 97, 188; and legal system 255; and the market economy 62–3; rural reform 280, 282
developing countries: lessons from China’s experience 86; poor economic performance 80–81, 87n8
Discourse of Salt and Iron 14
dominance, Qing dynasty 23–4, 27–8, 36–7, 37n7
East Asia, Hong Kong re-exports 213, 214
Eastern Europe, economic reform 87n10, 109
economic crime 257, 262; see also corruption
economic crisis see financial crisis, global
economic growth: China’s transition strategy 80–83; and corruption 289; and exports 67; future prospects 83–6; and inequality 288–9; and inflation 138–42, 153; and law 269–71; and per-capita GDP 288; potential and prospects 333–5, 334; rapid and smooth pace 325–6, 326, 327; reasons for China’s failure to achieve prior pre 1979 79–80; and rural community enterprises 17; and technology progress 78–9; unprecedented 77; see also GDP
economic policy, Deng Xiaoping 47
economic reform: Eastern Europe 57, 87n9–10; future prospects 71–2; market-economy reforms (1992–2002) 62–7; partial reforms (1978–83) 56–62; preceded by green revolution 280, 281; remaining tasks 198–205; role played by local leaders 281–4; and rural–urban migrant workers 67, 98–100; semi-command semimarket 67–71; and unstable environments 24; and WTO membership 192–3; see also state-owned enterprises (SOEs), reform subheadings
education: higher education 110, 331, 332; law schools 258; legal personnel 269; Mincer’s equations 133, 136n9; need for reform 85; Qing reforms 29; rural–urban divide 11; see also graduates
egalitarianism 2
electricity industry: decommissioning 319; feed-in tariffs 308, 309; and flue gas desulphurization (FGD) 312, 315; infrastructure 319; pollution and 305–6; production 48; tier-tariffs 309
Elvin, M. 35
emissions: carbon capture and storage (CCS) 306, 319–20; data accuracy 315–16; targets 304, 310, 312, 319; trading 310, 311
Emminger, Otmer 59
employment: danwei (work units) 104, 108; generated by exports 216, 284; of graduates 114–15, 118n44; informal employment 111, 117n28; iron rice bowl 104; job assignment for skilled workers 51, 103–4; and personal connections (guanxi) 104, 109; personal dossiers (dangan) 104; ratio by organization type 194; turnover rates 110; urban 51; worker mobility 108–9; working age population 93, 93; xiagang (off post) workers 109, 116n19
energy sector: carbon capture and storage (CCS) 306, 319–20; conservation measures 304–7; consumption data 316–18; economic policies 309–312; energy management companies (EMCs) 311–12; and foreign direct investment 231–3; intensity figures 317, 318; renewable 308–9; subsidy cuts 309; supercritical (SC) power generation 306, 319; see also coal; electricity industry; natural resources
environment: and financial institutions 314; green credit policy 314; Green Watch program 313; international pressure for action 333; State Environmental Protection Agency of China, (SEPA) 314
environmental disasters 84–5, 293
environmental pollution see pollution
equity markets 201
Erumban, A.A. 217
ethnically Chinese economies (ECEs) 224–5, 231, 289
Europe, population growth 35, 36
European Union: Hong Kong re-exports 212, 214; trade with China 208, 210–211, 212
exchange rates 64, 141, 144, 150–53, 245–7, 251
exports: 1978–2010 64, 65; agricultural 171, 177–8; and economic growth 67; employment generated 216, 284; environmental issues 312–13; increase in manufactures 78; to Japan 217; as percentage of GDP 82, 82; re-exports through Hong Kong 211–13, 212, 214; by sector 216; Split/Non-Split approach 213, 215, 217; surplus/GDP rates 330; of traditional economy era 16; value-added 215, 216, 217–18
Export–Import Bank of China 237
families, bloodline concept 3–4, 17
family connections (guanxi) 104, 109, 261, 293–6, 332
family size, and household savings 134
famine: 1748 15; Great Famine (1959–61) 46, 55–6, 90, 159, 168, 169, 292; and Taiping Rebellion 28
Fan Gang 286
Feenstra, Robert C. 217
Fei Xiaotong 282
Feng, J. 133
Ferri, G. 127
fertility levels (population) 90–92, 91, 95–6
financial crisis, global: China’s job losses 117n31; China’s stimulus package 117n33, 142, 149–50, 203, 286; effect on China 142, 147, 203, 219; effect on labor market worldwide 112; see also Asian financial crisis
financial laws 202
financial sector: and environmental performance 314; foreign presence in China 240–41; future challenges 249–53; illicit outflows abroad 295; inefficiency of resource allocation 251; and inequality 82–3; and international best practice 249; M2 growth 252; objectives for further reform 253; property rights 248, 249–50; reforms 143, 236–40, 241, 248–9; size and structure 241–3, 242; under Republic of China 32; and WTO accession 237, 240; see also banks and banking; savings
fiscal policy 140, 148–50, 154, 259; see also taxation
fisheries 170
Five-Year Plans: continuation 52–3; enforcement mechanisms 45; eleventh 304; first 47–8, 48; first and second 46; fourth and fifth 47; goals 80; twelfth 253, 305, 310; SPC role 43; seventh 60
food economy 174–5; see also crops
foreign direct investment: and bribery 289; China’s statistical thresholds 224; definition 222–3; encouragement 261; and ethnically Chinese economies (ECEs) 224–5, 231, 289; extent of 222, 223; FDI/GDP ratios 225, 225, 226; from overseas Chinese 227–8, 228–9; industrial organization theory 226–7; outbound 203–4, 222, 230–33; productivity spillovers 229; and real estate 226, 228, 231; regional shift 226; round-trip 224–5, 231; sources of 227–8; and supply chains 209, 218–19
foreign exchange reserves 78, 85, 153
foreign trade corporations 46, 51
foreign-funded enterprises: employment ratio 194; increased importance 190, 190; profitability 190; share of industrial output 190, 194; value-added tax payable 195
foreign-invested enterprises (FIEs) 209, 209, 211, 229, 259, 268
France, savings trends 121, 122, 123, 124, 126
Galor, O. 35
Gao Shangquan 59
GDP: 1980s 162; China’s share of global GDP 76, 77, 324–5, 325; China’s share relative to US 324, 325; continued growth during transition 109; data revisions 317; and falling consumption 71; and financial crisis 142; growth in market economy (1990–2010) 67, 139; growth under Republic of China 33; M2/GDP ratio 70, 71; regional disparities within China 329; slow growth in centrally planned economy 50, 52; see also per-capita GDP
Germany, investment in China 228
Gerschenkron, A. 17
Giavazzi, J. 335
Gibson, J. 165
Gini coefficient: explanation 159; see also income inequality
Gong Zhuming 59
government expenditure 149, 293
government savings 123, 123, 124, 125, 125, 126
graduates 106–7, 109, 110, 114–15, 118n44, 118n46, 331, 332
Graham, E.M. 224
grain crops see crops
Grand Canal 12
Great Leap Forward 46, 50–51, 55, 160
Green Watch program 313
guanxi (personal connections) 104, 109, 261, 293–6, 332
Guizhou province 164
Guo Shuqing 59
Han Dongfang 286
Han dynasty (206 BC–AD 220) 4, 6, 13, 14
He, L. 133
health insurance 97
higher education 110, 331, 332; see also graduates
Hoffman, A. 199
Hong, C. 217
Hong Kong: ceded to Britain 25, 28; and China’s re-exports 211–13, 212, 214; Chinese investment in 231, 231; corruption 294, 295; Independent Commission Against Corruption (ICAC) 290–91; investment in China 224–5, 289; rule of law 269, 270
household consumption see consumer spending
household registration system see hukou (household registration system)
Household Responsibility System (HRS) 99, 173, 174
household savings: and family size 134; Japan and Korea 130, 131; life-cycle hypothesis 131–4, 135; precautionary savings motive 134, 135; puzzle explained 121–2, 135n5; trends 122–6; urban and rural compared 129–30, 130, 134
housing 132–3, 262, 264, 306, 332
Huang, Y. 229
hukou (household registration) system: discrimination against rural migrants 99, 161, 163, 289; effect on household spending 134; need for reform 115, 118n50; urban hukou 104, 106, 108
human rights 269
Hummels, D. 213
Hung, J. 123
ICBC (Industrial and Commercial Bank of China) 236, 237–8
imports: agricultural 171, 177–8; from Japan 218; iron and other ore products 331; tariff reductions 64; and technological progress 7–8; trend 65
income see per-capita income; wages
income inequality: in Asia 158; decline in collective era 157, 160–62; and economic growth 288–9; extent of 70–71, 72, 106–7, 109, 157–9, 158; increase of 82, 84, 107, 328; measurement of 159–60; regional 163–5, 164; urban–rural gap 157, 161–3
Indonesia: energy prices 309; pollution control 313
Industrial and Commercial Bank of China (ICBC) 236, 237–8
industrial output 48, 185, 190, 193, 194, 199, 326
industrial policy: and government subsidies 80; pollution and 312–13, 319; Qing dynasty 30; under Republic of China 32, 33
Industrial Revolution 34–5, 76, 78–9
inequality: consequences of 84, 327; and corruption 85; and financial services 82–3; health care 97, 159; political 158–9; reasons for 16, 326–7; trends 105; see also income inequality
inflation 50, 62, 138, 139, 141, 142, 153
informal institutions 22, 37, 38n24
infrastructure projects: China Model 69; and corruption 72, 291; excessive government expenditure 293; stimulus package 112, 117n33; traditional economy projects 12
innovation see technology progress
institutions: decentralized vs centralized 22–4, 23, 34; economic vs political 22; formal vs informal 22; future prospects 337–41; informal 22, 37, 38n24; Qing dynasty reforms 29–30; rigidity in Qing dynasty 24, 26–7, 30–31, 36–7; unanticipated shocks and change 22
insurance 240, 242, 250; health insurance 97
intellectual property 260, 262
interest rates 140, 143, 145, 244–5, 251, 252
International Monetary Fund (IMF) 241
international trade: agricultural 171, 177–8; in centrally planned economy 46, 51; characteristics 209–211; growth 77, 208; processing trade 209–210, 213–18, 217, 218–19, 218; re-exports through Hong Kong 211–13, 212, 214; Special Economic Zones (SEZs) 58; supply chain measurement 213, 215–18; surplus 210–211, 210, 211; in traditional economy 5, 10, 16
investment: in centrally planned economy 45; changes in fixed-asset investments 70; fixed asset investment 82, 82, 154; income 153; increase in non-governmental 63; as percentage of GDP 329–30, 331; real estate 139–40, 140–41, 143, 226, 228, 231; see also foreign direct investment; outbound foreign direct investment (OFDI)
iron and steel industry 48, 50, 283, 312, 314, 326, 331
Ishii, J. 213
Japan: corruption 288–9; economic bubble 152; economic emergence 325, 327; Fukushima accident 307; Hong Kong re-exports 212, 214; household savings 130, 131; inheritance system 3–4; investment in China 228; per-capita income 84; population growth 4; prominence in Asia 15; Ryukyu Islands 25, 29; savings trends 121, 122, 123, 124, 126; silver exports 15; Sino-Japanese war 26, 29, 32; Taiwanese rule 25, 29; takeover bids 233; trade with China 208, 210–211, 212, 217, 218; urban population 12; World War II 26, 32
Jia Heting 59
Jiaqing, Emperor 25
Jin, S. 177
Jones, C. 288
Jones, E. 37n7
Kangxi, Emperor 24, 25, 27, 28
Korean War 42
Kraay, A. 123
Krugman, Paul 85
Kuijs, L. 123
Kuomintang (Nationalist Party/KMT) 31, 34
Kwong, J. 288
labor contract law 108, 111–12, 115, 202–3, 259, 261
labor force: agrarian nature 80; decreasing supply 335, 335; working-age population 93, 93, 97–8, 98
labor market: challenges 112–15; effect of rising wages on (Lewis turning point) 107, 108, 110–111, 128–9, 203, 286, 288; post-reform 106–110, 108; pre-reform 103–5, 108
labor relations 113
Laffargue, J.P. 133
land collectivization 17
land expropriation (grab) 285, 289
land ownership, historical 8–9, 12
land reform 169
land rights 173–4, 260, 262, 264, 268
Lardy, N. 335
law: administrative law 265–6; Anti-Monopoly Law (2008) 260, 262, 265; bankruptcy 260, 262; company law 259, 274; contract law 256–7, 258–9, 263, 283; Corporate Law (1993) 202; domestic economic legal reform 258–62; and economic development 269–71; election law 265, 266; future prospects 340; implementation problem 267; informal enforcement means 267–8; international economic integration 261; labor contract law 108, 111–12, 115, 202–3, 259, 261; legal transplants from abroad 267; mechanisms for public input 266; property rights 260, 262, 264, 268; public law 265–6; rising social demand for 272; rule of law 267–9, 339; Rural Land Contract Law (RLCL) 173–4; taxation 259–60; Tendering and Bidding Law 291; tort law 260, 262, 264; volume of 258; weak law 271
law firms 258
Lee, K. T. 64
legal system: Baojia system 26, 38n10; corruption 263; dispute resolution 262–3; and dysfunctional state behavior 263–6; and the economy 255–6; and enterprise reform 202–3; official insistence on importance of 257–8; pre-reform era 256–7; uneven rule of law development 268–9; and WTO accession 257, 261
Lewis turning point 107, 108, 110–111, 128–9, 203, 286, 288
Li, C. 165
Li Hong 59
Li Keqiang 272
Li, X. 195
Li Zhuang 273
Liao Jili 59
Liu Guoguang 59
Liu Jirui 59
Liu, L.G. 127
Liu Xiaobo 273
local government: accountability 328–9; appointments 283; cadre luxury 292; energy tax revenue 310; expenditure 149; legal system and problematic behavior 264–6; revenues 148; and SOE job losses 191
Lou Jiwei 59
Lu, M. 134
Lü Xiaobo 288
Luo Gan 273
Ma, D. 33
Ma Hong 59
McMillan, J. 174
macroeconomic policy: Bashan Steamboat Conference 59–60; complications 146–7; fiscal policy 140, 148–50, 154, 259; historical summary 139–43; instruments 145–6; intermediate targets 144–5; International Conference on China’s Macroeconomic Management 64; monetary policy 247; objectives 143–4
Maddison, A. 35, 36, 76, 77, 78, 84
Malaysia, energy prices 309
Mao Zedong 26, 31, 47, 55, 160–1; see also Great Leap Forward
market economy: China’s incomplete transformation 139; China’s mixed nature 67–71, 280; Chinese Communist Party in 62–3, 65–6; establishment 62–4; and financial sector incentives 248; and ownership structure changes 65–7; remaining tasks 198–205; see also economic reform
marketing, unknown in centrally planned economy 45–6
markets: agricultural 174–6; China Model 69, 270; repressive vehicles 42; and state control 14
marriage 4, 94; marriage squeeze 101, 133
Marxism 42
May Fourth Movement 26, 31, 34, 37
merchants’ guilds (huiguan) 5, 10
Mexico: savings trends 122, 123, 124, 126; trade with China 208
migrant workers see rural–urban migrant workers
military corruption 292
Ming dynasty (1368–1644) 6, 8, 10, 11, 13
Modigliani, Franco 64, 131–2, 133
mortgages 133
Mote, F.W. 27
Mozi school 2
Murphey, Rhoads 16
National Development and Reform Commission (NDRC) 53
natural resources 82, 83, 84, 87n12, 330
Naughton, B. 335
Ng, F.213, 218
non-state sector: dual-pricing system 51–2, 54n9, 60–62, 73n9, 282–3; economic litigations 283; employment ratio 194; expansion 66, 66, 106, 190; fiscal and financial laws 259–60; and government agencies 186; limited access to financial capital 201, 204, 261; and monopoly industries 200; problems 194–5; profits and losses 189–90, 195; reforms 57, 72, 259; and retail sector 59; share of industrial output 185, 190, 194; share of national economy 58, 58; and SOE acquisition 192; value-added tax payable 195; ‘wearing a red hat’ 186, 189
Northern Song dynasty (960–1126) 4, 9, 11
One Child Policy 91, 94–5, 132
Open Constitution Initiative (gongmeng) 273
outbound foreign direct investment (OFDI) 203–4, 222, 230–33
paper industry 48
People’s Bank of China (PBOC): and environmental performance 314; exchange rates 64, 141, 144, 150–53; functions 45, 236; interest rate liberalization 244–5; interest rates 140, 143, 146; intermediate targets 144–5; loans to poor regions 327; macroeconomic policy 140–43; money supply issues 146–7, 154; open market operations 145; reforms 72; required reserve ratio 145; restructuring 143; weakness 49–50
People’s Congress 333, 339, 340
people’s congresses: elections 265, 266; legal staff 258
People’s Republic of China, foundation 26
per-capita GDP: and centralization of authority 22–3, 23; China and Western Europe compared 35, 36; and economic growth 288; Qing dynasty improvement 29–30; regional disparities within China 329; and savings cycle 130
per-capita income: China and US compared 80, 84, 328; China’s prospects 84; increase 77; increase a modern phenomenon 78; middle-income trap 334; rural population 161–2, 168–9, 172
Perkins, Dwight H. 30, 33, 35, 333, 335
personal connections (guanxi) 104, 109, 261, 293–6, 332
petroleum industry 48
Philippines, corruption 290
Ping, X. 213
pluralization 286
Poland, economic reform 87n9–10
political centralism 281
political dissidents 262
pollution: carbon emissions 304, 312, 316–17, 319, 330, 332; control of 309–311; economic costs of 304; fines 311; and flue gas desulphurization (FGD) 312, 315; implementation and monitoring 314–16; industrial restructuring and 312–13, 319; performance ratings and disclosure 313; and social unrest 285, 303; and taxation 310–311
Pomeranz, K. 35
population: changing age structure 92–3, 93, 94, 97; fertility levels 90–92, 91, 95–6
population growth: annual rates 90–92, 91; China and Western Europe compared 35, 36; and famine 15; historical trend 4, 15; Malthusian trap 35, 38n21; projections 92; Qing dynasty 28, 35, 36
pork prices 141
port cities see coastal areas
postal system 12
power: political 280–81; see also electricity industry; energy sector
price discovery 251
prices: agricultural 172–3; dual-pricing system 51–2, 54n9, 60–62, 73n9, 282–3
printing 10
private enterprises see non-state sector
privatization (Gaizhi) 188–92, 291
processing trade 209–210, 213–18, 215, 216, 217, 218–19, 218
productivity, agriculture 9, 17, 172
property rights 193
property rights law 260, 262, 264, 268
public health and safety 260, 263, 264
Puyi, Emperor 26
Qian Jiaju 61
Qian, R. 123
Qianlong, Emperor 24, 25, 26, 27, 28, 38n11
Qing dynasty (1644–1911) 24–30; centralized nature and rigidity 24, 26–7, 30–31, 36–7, 38n23; chronology 25–6; commercial policy 28; corruption 24, 30, 37; currency 14; economy 29–30; and merchants 13; peace and prosperity 24; and the people 16; population growth 28, 35, 36; postal system 12; tax-GDP ratio 30, 31, 36, 38n23; taxation 11, 27, 28, 30, 31
Qiu Shufang 59
railways 293; and corruption 291
Rankin, M.B. 30
real estate investment 139–40, 140–41, 143, 226, 228, 231
Republic of China (1911–49) 31–7
retail sector 59
rights 272–3; see also human rights
Robinson, J.A. 22
Rodrik, D. 217
Rozelle, S. 173, 174, 177, 178–9
rural credit cooperatives (RCCs) 238–9, 242, 248, 250
rural economy: Household Responsibility System (HRS) 99, 173, 174; household-based contract system 57; and income inequality 157, 161–3; local rural industries 281–4; per-capita income 161, 168–9, 172; see also agriculture; hukou (household registration) system; rural–urban migrant workers; township and village enterprises (TVEs)
Rural Land Contract Law (RLCL) 173–4
rural pensions 101
rural–urban migrant workers: after economic reform 67, 98–100; discrimination against 106, 108, 284–5, 285–6; and employment turnover 110; and financial crisis 112, 117n31; from rural to urban areas 67, 98–100; importance in Europe 135n4; informal employment 111; numbers 106, 116n14; restrictions during Great Leap Forward 51; rights 111–12; suggested reforms 289; in traditional economy 10–12, 15; wages compared with graduates 108, 114–15, 118n46; see also hukou household registration system
Russia, Treaty of Nerchinsk (1689) 24, 25
salt 283
Sato, H. 133
savings: puzzles defined 121–2; statistical trends 121–6; see also corporate savings; government savings; household savings
Schott, P. 217
Schumpeter, Joseph 199
securities: China Securities Regulatory Commission (CSRC) 72, 239, 292; law 259, 268, 274; limited openness 240
security firms, assets 242
Self-Strengthening Movement (Yangmu yundong) 25, 29
service sector 203, 231, 336–7, 336
sex ratios, at birth 100–101, 133, 136n8
Shanghai Interbank Offer Rate (SHIBOR) 143, 245
Shanghai Stock Exchange 141, 314
share price index 141
shuanggui (party discipline) 266
silver, as currency 5, 10, 13–14
Singapore: investment in China 289; ministers’ salaries 341; possible future model for China 338, 339, 340; rule of law 269, 270; trade with China 212
Skinner, G.W.1 1
SO2 (sulphur dioxide) emissions 304, 310, 312, 315, 316
social benefits 105–6, 108, 115, 161; SOE provision 187
social capital see informal institutions
social unrest 68, 262, 263, 284, 285, 327, 331–3
social values 34, 37, 38n24; see also universal values
society, blood relationships 3–4, 17
SOEs see state-owned enterprises (SOEs)
soft budget constraints 57, 59, 237, 256
solar energy 308
Song dynasty (960–1279) 7, 13, 15
Song, L. 204
Song, Z.M. 133
South Korea: savings trends 121, 122, 123, 124, 126, 130, 131; trade with China 208, 210–211, 212
Soviet Union: break with China 46; economic reform 57; economic system 42
SPC (State Planning Commission) 41, 43–4, 50, 53, 53n2–3
Special Economic Zones (SEZs) 57, 261
State Commission for Restructuring the Economic System (SCRES) 59
State Planning Commission (SPC) 41, 43–4, 50, 53, 53n2–3
State-owned Assets Supervision and Administration Commission 69, 193
state-owned enterprises (SOEs): bank lending 201; and banking reform 249; contract responsibility system 184, 283; corporatization 193; declining importance 65–6, 66, 109, 184–5, 185, 189; dividend payments 127; dual–pricing system 51–2, 54n9, 60–62, 73n9, 184; employment ratio 194; Gaizhi (privatization) 188–92; government control before reform 183; guojin mintui 261; industrial output share 185, 190, 193, 194, 199; inefficiency 52, 183; job losses 109, 163, 184, 189, 191; monopoly reform needed 199–200; ownership and control problems 187–8; pilot programs for reform 57, 183–4; and pollution 313, 315; profits and losses 185, 186, 187–8, 189, 191, 195, 195, 196; reforms 73n8, 105–6, 108–9, 163, 259; reforms stage 1 183–8; reforms stage 2 188–92; reforms stage 3 193–8; Regulation on Management Mechanism (1992) 184; and retail sector 59; share of national economy 58; soft budget constraints 57, 59, 237, 256; state control of labor system 103–4; student training programs 115;TFP (total factor productivity) 197–8, 197; value-added tax payable 195
steel see iron and steel industry
Stern, Nicholas 64
stock market: Big Four bank listings 238; capitalization 242; and environmental information 314; flaws 261, 293; listed companies 201; price discovery 251; share price crash 141; SOE bias 201; split share structure (gu quanfen zhi) reform 239–40
sugar 48
sulphur dioxide (SO2) emissions 304, 310, 312, 315, 316
Sun Yan 288
Supreme People’s Court 273
Taiping Rebellion (1850–64) 13, 16, 25, 28
Taiwan: Hong Kong re-exports 214; investment in China 224, 289; Japanese rule 25, 29; land ownership 17; trade with China 210–211, 212
Taiwan Semiconductor Manufacturing Company 197
tariffs, agricultural 177
taxation: benefits for foreign-invested enterprises (FIEs) 229; energy resources 310–311; law 259–60; motor vehicles 306–7; Qing dynasty 11, 27, 28, 30, 31; reforms (1994) 148, 284; revenues 148; in traditional economy 11, 12; value-added tax 195; see also fiscal policy
technology progress: in agriculture 176–7; and competitiveness 198; and economic growth 78–9; imports from the West 7–8; latecomer advantage 79; and population size 35–6; in traditional economy 5–8; under Republic of China 32; and war 24, 38n22
TFP (total factor productivity): agriculture 172, 174; state sector 197–8, 197
Three Gorges project 12
Tian Yuan 59
timber 283
Tobin, James 59
Tongzhi, Emperor 25
township and village enterprises (TVEs) 54n8; as basis for market economy 66; and dual–price system 52; formation 105; growth 52, 282; increase 106; and the law 259; origins 185–6; and political protection 57–8
trade: China’s deficit with US 85; China’s surplus 329, 330, 336; competitiveness 336; see also exports; imports; international trade
traditional economy 1–17; and agriculture 6–7, 8; commercial activities 5, 9–10; economic cycles 14–15, 16; geographical shift from northeast to southeast 2, 15, 16; and industrious human effort 15–16; rural–urban relations 10–12, 15; small-scale farming in 2–3, 4–5; uneven regional development 16
transition economies see developing countries
transport sector 32
Treaty of Peking 25
treaty port areas 16
unemployment: graduate 114–15, 118n44; job losses from SOE reform 109, 163, 184, 189, 191
United States: Chinese residence applications 295; Chinese takeover bids 232–3; corruption 288; dollar–yuan exchange rate 151–2; economic emergence compared with China’s 325, 326; and financial recession 112; GDP compared with China 324, 325; investment in China 227, 228; per-capita income compared with China’s 80, 84, 328; savings trends 122, 123, 124, 126; trade with China 85, 208, 210–211, 212, 212
universal values 338
urban areas 11, 51, 52, 111, 117n28; and income inequality 157, 161–3; see also rural–urban migrant workers
urban credit cooperatives (UCCs) 239, 242
value-added tax 195
villages: budget deficits 285; election law 265, 266
Wada, E. 224
wages: in centrally planned economy 50; China and Europe compared 35; and education 106–7, 109; effect of rising wages on labor market (Lewis turning point) 107, 108, 110–111, 128–9, 203, 286, 288, 335; graduate–migrant compared 108, 114–15, 118n46; inequality 70–71, 106–7, 109; legal personnel 269; Mincer’s equations 133, 136n9; non-payment to migrant workers 284–5; state control 103–4
Wang Qin 59
Wang Shengjun 273
Wang, Z. 213
warlords 33
wars: and reforms 22, 24, 29; and technological innovation 38n22
Washington Consensus 270
weapons manufacture 42
Wei, S. 224
Wei Yuan 14
Weil, D.N.35
Williamson, Jeffrey G. 16
workers’ rights see labor contract law
working-age population 93, 93, 97–8, 98
World Trade Organization (WTO): and agricultural sector 177–8; and China’s financial institutions 237, 240; China’s membership 52, 64, 192; dispute proceedings 262; and economic reform 192–3; and legal system 257, 261
WTO see World Trade Organization (WTO)
Wukan land grab 285
xiagang (offpost) workers 109, 116n19
Xianfeng, Emperor 25
Xiang Huaicheng 59
Xiao Yang 273
Xu Jiatun 282
Xu Meizheng 59
Xun, General Zhang 26
Yang, L. 13
Yang Qixian 59
Yeats, A. 213
Yi, K. 213
Yu, E. 133
Yuan Shikai, Emperor 26, 31, 33, 34
Zhang, C. 198
Zhang Chunqiao 282
Zhang, J. 127
Zhang Zhuoyuan 59
Zhao Renwei 59
Zhong, N. 134
Zhou, S. 127
Zhou Shulian 59
Zhou Yongkang 273
Zhu Rongji 52, 139–40, 149, 280, 284
Zhu, X. 197