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

RONGXING GUO is currently a professor and Head of the Regional Economics Committee at the Regional Science Association of China at Peking University. He is also Visiting Fellow for Foreign Policy at the Center for Northeast Asian Policy Studies, at the Brookings Institution.
Guo specializes in regional economics with an emphasis on Chinese economic issues and in cross-border and cross-cultural issues. He has over 20 years of experience in teaching and research in China, as well as in Australia, Japan, South Korea, Italy, Germany, and the US. His recent research projects include cross-cultural economic management, intercultural economic analysis, cross-border resource management, conflict management in disputed areas, economic growth and income distribution, and Chinese economic reform.
In 2008, Guo received an award for Outstanding Research in the Ninth Global Development Conference held in Australia. He has published more than 20 books in both English and Chinese. China’s economic juggernaut continues to astound the world year after year. Even in the face of the US financial crisis, China continued to drive strong economic growth. But what are the factors behind the success? This concise introduction to the modern Chinese economy from noted expert Rongxing Guo provides many of the answers.

Based extensively on the author’s research, the book analyzes the social, economic, and political history of China and the effect of reform at local, regional, and national levels. In the course of his analysis the author addresses both the positive and negative consequences of the transformation.

Written by one of China’s top economic scholars, An Introduction to the Chinese Economy offers the reader fascinating insights into the most significant transformational event of the 21st century. The book will be an essential resource for scholars, business people, policymakers, and general audiences throughout the world. It is also suitable for classroom use in undergraduate courses.

China’s economic juggernaut continues to astound the world year after year. Even in the face of the US financial crisis, China continued to drive strong economic growth. But what are the factors behind the success? This concise introduction to the modern Chinese economy from noted expert Rongxing Guo provides many of the answers.

Based extensively on the author’s research, the book analyzes the social, economic, and political history of China and the effect of reform at local, regional, and national levels. In the course of his analysis the author addresses both the positive and negative consequences of the transformation.

Written by one of China’s top economic scholars, An Introduction to the Chinese Economy offers the reader fascinating insights into the most significant transformational event of the 21st century. The book will be an essential resource for scholars, business people, policymakers, and general audiences throughout the world. It is also suitable for classroom use in undergraduate courses.

Professor Guo Rongxing delivers exactly what he promises: an introduction to the Chinese economy. But he touches all the right bases, and his explanations are always clear. The treatment is balanced, with appropriate historical perspective. The final chapter on fundamental issues in China's economic development is particularly thoughtful.

-- Richard C. Bush, Senior Fellow and Director, Center for Northeast Asian Policy Studies, The Brookings Institution, and Co-author of A War Like No Other: The Truth About China's Challenge to America

Teachers of introductory courses on the People's Republic of China will find this book very useful. It not only provides an introduction to the success of the world's most dynamic economy, it places that development in its social, cultural, and political contexts with a great deal of insight and erudition.

-- David S. G. Goodman, Professor of Chinese Politics and Director, Institute of Social Sciences, University of Sydney

An excellent overview of basic facts about China's economy, society, political system, government, geography and history.

-- Pieter Bottelier, Economist and Senior Adjunct Professor, Johns Hopkins University

Professor Guo Rongxing uses events from Chinese history and concepts from Chinese philosophy to illuminate Chinese political economy, thereby adding an important, previously missing piece of the Chinese jigsaw puzzle and bringing a valuable Chinese perspective to understanding China.

-- Giles Chance, Visiting Professor, Guanghua Business School, Peking University
Author of China and the Credit Crisis