Economic Development And Reform Deepening In China

This book, together with Macro-control and Economic Development in China is a collection of papers written in recent years about maintaining economic growth, managing inflation, the relationship between growth and structural adjustment, control of price growth, maintaining stable economic development, and other relevant aspects of macro-control, economic development, and deepening reform. Chinese government adopts many of the recommendations put forward by the book.

The Chinese economy has entered a new phase of development in which sources of growth are not so much dependent upon pure increases in labour, investment and credit expansion, but from productivity improvement, structural changes, technological progress and the benefits from improvement of the social security and welfare improvement. When market functions are fully established to become a main channel for allocating resources, the entrepreneurship will flourish engaging in more innovative activities, workers will move more freely and have more incentives to improve their skills, firms will become more productive through market entry and exit, the economic structure will become more balanced because of the improved resource allocation, and in the end, growth will become more spontaneous and sustainable. In this sense, reforms could deliver ‘dividend’ by raising China’s potential economic growth rates. For China to confront all the challenges it faces at present, the reforms undertaken now have to be deep, comprehensive and far-reaching in order to succeed in paving the way for China to complete the task of transformation in the long-term. There is no better alternative than deepening the market-oriented reform in advancing the course of China’s modernisation for future development and prosperity and lifting China to the status of a developed economy in the next two decades. The recent China update books have covered the topic of reform from different angles and this new book is another attempt to address this important issue.

This book first shows that the past 40 years of China's economic reform and opening up represents the greatest magnitude of economic growth in history. Based on field trips, extensive and intensive interviews and literature surveys, this book argues that there are five general lessons for a rapid growing economy from China's economic reform and opening up, all in the area of the relationship between the government and the economy. First, the local governments need to be incentivized to help rapid entry and development of enterprises. Second, local governments need to be incentivized to help rapid land conversion from agricultural to non-agricultural. Third, financial deepening is vital; that is, inducing households to hold more and more financial assets in local currency. Financial deepening is essential to convert savings into investments. This requires financial stability, which is crucial. Fourth, the learning through opening up is the key to endogenous economic growth. The fundamental benefit of opening up is learning rather than enjoying comparative advantage. The fifth and final lesson from China is that the central government must proactively manage the macroeconomy. The rationale is that enterprises compete with each other in games of industrial organization. In order to resolve this problem, proactive measures including market-oriented means, administrative orders and reform measures should be implemented. Overall, the main lesson from China's past 40 years of reform and opening up is that proper incentives and behavior of the government, local and central, are important for economic growth. China has been conducting reforms in this regard and as a result, the government more or less has been playing the role of a "helping hand" regarding economic growth, although China's economic system is far from perfect and many reforms are still needed.

China has made some remarkable achievements during the first three decades of economic reform and opening up, rising to become one of the world's most dynamic and globally-integrated market economies. Yet there remains much unfinished business on the reform and development agenda, coupled with newly emerging challenges. CHINA: THE NEXT TWENTY YEARS OF REFORM AND DEVELOPMENT highlights how the deepening of reforms in critical areas such as domestic factor markets, the exchange rate regime and the health system, combined with the strengthening of channels for effective policy implementation, will enable China to cope with the challenges that lie ahead. These include responding to the pending exhaustion of the unlimited supply of labour; playing a constructive role in reducing global trade imbalances; enhancing firms' ability to innovate; coping with migration, urbanisation and rising inequalities on scales unknown in world history; and dealing with rising energy and metal demand in an era in which low-carbon growth has become a necessity rather than a choice.

This book, together with Economic Development and Reform Deepening in China is a collection of papers written in recent years about maintaining economic growth, managing inflation, the relationship between growth and structural adjustment, control of price growth, maintaining stable economic development, and other relevant aspects of macro-control, economic development, and deepening reform. Chinese government adopts many of the recommendations put forward by the book.

This book focuses on the key issues around Chinese reform in the past 40 years, including economic structure upgrading, finance reform, enterprise ecology, village modernization, ecological development, income structure, global governance, BRI, and governance model. It collects the most important concerns and reveals the deep logic behind the reform. By reading this book, it helps readers to grasp the engine of China’s continuous growth toward modernization in the four decades.

China’s growth miracle over the past 30 years has propelled it to become the world’s second largest economy and potentially the largest in the following years. This book examines China’s experience on economic reform, trying to find the reasons for the sustainable and rapid development and provide insights into the study of economic theories. From the perspective of political economics, this book elaborates on China’s socialist market economy which was officially confirmed as the goal of the country’s economic reform in 1992. It expounds on China’s economic model, the relationship between socialism and market economy, as well as the establishment and improvement of socialist market economy in China, deepening the studies in the laws governing China’s economic development. Then, it explores the gradual reform, the reform of state-owned enterprises, and the relationship between governments and market, all of which are crucial to the success of China’s economic reform. Finally, based on the analysis above, this book discusses the reasons for the constant and rapid development of China’s economy. With detailed analysis on the reform experience and theoretical implications, this book will appeal to scholars and students studying China’s economy, and contribute to the development of economic theories.

The year 2018 marks 40 years of reform and development in China (1978–2018). This commemorative book assembles some of the world’s most prominent scholars on the Chinese economy to reflect on what has been achieved as a result of the economic reform programs, and to draw out the key lessons that have been learned by the model of growth and development in China over the preceding four decades. This book explores what has happened in the transformation of the Chinese economy in the past 40 years for China itself, as well as for the rest of the world, and discusses the implications of what will happen next in the context of China’s new reform agenda. Focusing on the long-term development strategy amid various old and new challenges that face the economy, this book sets the scene for what the world can expect in China’s fifth decade of reform and development. A key feature of this book is its comprehensive coverage of the key issues involved in China’s economic reform and development. Included are discussions of China’s 40 years of reform and development in a global perspective; the political economy of economic transformation; the progress of marketisation and changes in market-compatible institutions; the reform program for state-owned enterprises; the financial sector and fiscal system reform, and its foreign exchange system reform; the progress and challenges in economic rebalancing; and the continuing process of China’s global integration. This book further documents and analyses the development experiences including China’s large scale of migration and urbanisation, the demographic structural changes, the private sector development, income distribution, land reform and regional development, agricultural development, and energy and climate change policies.

​This book collects essays from Chinese economic sage who was the mastermind of the reform and opening and persistent champion of market-driven development. In the essays, he outlines his vision of the systemic reform needed for today's China, from rule of law to completion of the market system and reform of state-owned enterprises. Dr. Wu's thoughts are always of interest, but at this pivotal moment of Chinese economic recalibration, his views will be of more value than ever, to scholars, economists, journalists, and those in civil society.

This book is about where to go and what to do in China’s reform. Its comprehensive overview and economic analysis of China’s reform offers a coverage not found in other English language text. It provides an overview of China’s development and reform practice, an economic analysis of China’s market-oriented reform and a brief introduction to the theoretical origin, practices, and defects of the planned economy. In so doing, this book demonstrates that the key to the success of China’s reform lies in drawing reasonable governance boundaries between government and the market and between government and society. It further discusses the basic elements required for modernizing China’s state governance system and conducts an analysis of China’s reform and development in 13 key fields. The analysis is based on three dimensions—theoretical logic, practical knowledge, and a historical perspective. This book proposes three elements of comprehensive state governance—inclusive economic institutions; the state capacity to plan and implement policies and laws; and an inclusive and transparent civil society with democracy, the rule of law, fairness, and justice. Its analysis also features the novel application of mechanism design theory by employing the two core ideas of information and incentives and a new research methodology consisting of “three dimensions and six natures”. This book reviews and grasps China’s reform through a qualitative analysis of economic theories and an empirical analysis of statistics from a historical perspective spanning over 180 years. It is proposed to be an important reference for understanding the past, present, and future of China’s reform and teaching about the potential economic superpower. It can also serve as an essential resource for those who are interested in China's economic reform and development.