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Copyright of Journal of International Development is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The activity of the Shadow Banks in China has been the subject of considerable interest in recent years. Total shadow banking lending has reached over 60% of GDP and has grown faster than regular bank lending. It has been argued that unregulated shadow banking has fuelled a credit boom that poses a risk to the stability of the financial system. This paper estimates a model of the Chinese economy using a DSGE framework that accommodates a banking sector that isolates the effects of lending to the private sector including shadow bank lending. A refinement of the model allows for bank lending including lending by the shadow banks to affect the credit premium on private investment. The main finding is that while financial shocks are significant, it is real shocks that dominate. The model is used to simulate the frequency of growth slowdowns in China and concludes that these are more likely to be driven by real sector shocks rather than financial sector, including shadow bank shocks. This paper differs from other applications in its use of indirect inference to test the fitted model against a three‐equation VAR of inflation, output gap and interest rate. [ABSTRACT FROM AUTHOR]

This paper examines how varying antidumping methodologies applied within the World Trade Organization differ in the extent to which they reduce targeted exports. We show that antidumping duties, on average, hit Chinese exporters harder than those of other targeted countries. This difference can be traced back in part to China's non‐market economy status, which affects the way antidumping duties are calculated. Furthermore, we show that the type of imposed duty matters, as ad‐valorem duties affect exports differently compared to specific duties or duties conditional on the export price. Overall, however, antidumping duties remain effective in reducing imports independent of market economy status. [ABSTRACT FROM AUTHOR]

The role of institutions in regional industrial dynamics has been a long‐lasting issue in economic geography and regional studies. This paper seeks to examine this issue in the context of transitional economies, where the market economy is embryonic, by using China as an example. Specifically, we examine how regional industrial dynamics have been shaped by China's peculiar institutional context in general and by its new round of economic reform in particular. One key part of the new reform is the establishment of administrative approval centers (AACs) to streamline official procedures that regulate business start‐ups and existing business. Empirical results show that the establishment of AACs has boosted new industry creations. However, in the first 3 years after the establishment of AACs, the effect of AACs on new industry creation is not evident and becomes significant afterwards. Furthermore, the effect varies across regions and industries. It is especially evident in less marketized cities. Labor‐intensive industries benefit more from the establishment of AACs than do capital‐intensive industries. [ABSTRACT FROM AUTHOR]

In this paper, we develop a novel trade‐accounting framework that is based on a multi‐country, multi‐industry model of trade. The framework links observed changes in wages, sectoral employment shares, total labor force, and bilateral trade costs to changes in bilateral trade values at the sector level. In our application, we quantify the changes in trade patterns from 1995 to 2010 among 15 advanced and emerging market economies attributable to structural change in China, focusing on three manifestations of trade creation and destruction: China's replacement of manufactured final goods exports to advanced economies at the expense of other economies; an expansion of China's imports of manufactured final goods and commodities; and an expansion of China's imports of parts and components that are then processed and exported as manufactured final goods to the advanced economies. Our main findings are: (a) scale effects have more than compensated for the loss of competitiveness due to higher wages in China; (b) China's wage growth has been an economically more significant determinant of trade creation and destruction than its reallocation of labor across sectors, and (c) structural change in China has shifted other countries toward more commodity‐intensive production. [ABSTRACT FROM AUTHOR]

This is a paper of two parts. The first suggests a number of questions concerning agrarian change in capitalism, grouped by their concern with social forces and dynamics internal to the countryside, rural-urban interconnections internal to the 'national', the contributions of agriculture to industrialization likewise within the 'national' and those 'external' determinants grounded in capitalist world economy. The second part draws on the papers in this special issue by Chinese scholars, to argue the continuing relevance of questions about commodification, differentiation and accumulation from below and from above, in agrarian change in China today. [ABSTRACT FROM AUTHOR]

In this paper, I argue that frontiers are dilemmas composed of multiple dualities, be they exclusive and inclusive powers, connected space and national periphery, or modernity and primitiveness. These dilemmas, in consequence, become the mechanism to create a leeway for the state to 'tailor' different meanings of frontier to meet the contingent market demands. I use tea production on China's southwest frontier as an example to demonstrate that dilemma is not an end result, but a mechanism to rearticulate the relationship among frontier, the state and the market economy. Specifically, I argue that dilemmas on China's southwest frontier have been forged by the Chinese state with its incompatible desires between 'modernisation' and 'primitiveness' of the tea landscapes in Yunnan, a province on China's southwest frontier. Meanwhile, the incompatible desires and the resulting dilemmas on China's southwest frontier have further mobilised the state to flexibly rework its power to reconstruct the frontier to meet contingent market demand. Based on the shifting meanings of tea landscapes, the state has flexibly 'shuttled through' the dilemmas between development of modernisation and preservation of primitiveness on the frontier. [ABSTRACT FROM AUTHOR]

Manuscript Type Perspective Research Question/Issue This paper argues that China shall not completely transit from a relation-based into a rule-based governance regime because the Chinese system of governance is the product of its rich heritage and entrenched value system. Research Findings/Insights Relation-based governance has two dimensions. This first is apparent from the emphasis on reciprocity and mutual obligations fostered between individuals and groups. The second is evident from inside an organization, where governance is hierarchical and paternalistic. This system of governance was influenced by Confucian doctrines that are moral centered precepts used to regulate human behavior and relationships. Given that this governance regime is interlinked to the Chinese culture, it is doubtful that China would completely abandon it in favor of a rule-based system from the West. Theoretical/Academic Implications There are two key implications drawn from this article. First, in the absence of the moral underpinnings of relation-based governance, this system is susceptible to exploitation. Individuals could take advantage of relationships and relational networks to commit mischief or achieve personal gains through tunneling or expropriation of company assets. Therefore, it is imperative to reinforce the ethical ideals of relation-based governance in China. Second, since relationalism from China's past and the laws transplanted from the West are key features of China's governance regime, it is important to explore hybrid solutions to lessen the possibility of bottlenecks and incongruities emerging. Practitioner/Policy Implications Any proposed hybrid governance solution ought to be able to deal with potential differences between the Chinese and the Western value systems as well as combine both regimes into an integrated framework. [ABSTRACT FROM AUTHOR]

A key challenge facing most emerging market economies today is how to simultaneously maintain monetary independence, exchange rate stability and financial integration subject to the constraints imposed by the trilemma, in an era of widespread globalization. In this paper we review and contrast the trilemma policy choices and trade-offs faced by the two key drivers of global economic growth: China and India. China's trilemma configurations are unique relative to other emerging markets in terms of the predominance of exchange rate stability, and in the failure of the trilemma regression to capture a consistently significant role for financial integration. In contrast, the trilemma configurations of India are in line with choices made by other emerging countries. Over time, India, like other emerging economies, has converged towards a middle ground among the three policy objectives, and has achieved comparable levels of exchange rate stability and financial integration buffered by sizeable international reserves. [ABSTRACT FROM AUTHOR]

This paper explores the Confucian veneration of the past and its commitment to transmitting the tradition of the sages. It does so by placing it in the context of the historical trajectory from the May Fourth attacks on Confucianism and its scientistic, iconoclastic approach to 'saving China,' to similar approaches to China's modernization in later decades, through the market reforms that launched China into global capitalism, to the revival of Confucianism in recent years. It reexamines the association of the Pragmatism of John Dewey and Hu Shih with the scientistic iconoclasm of the May Fourth Movement and argues that a broader scrutiny of Dewey's and Hu's works, beyond the period when Dewey visited China, reveals a more balanced treatment of tradition, science, and modernization. Pragmatists believe in reconstructing, not destroying, traditions in their pursuit of growth for individuals and communities. Despite a tension between the progress-oriented historical consciousness that Dewey inherited from the Enlightenment (a consciousness that some consider as characteristic of modern Western historiography) and the historical consciousness underlying Chinese historiographical tradition (one that views the past as a didactic 'mirror'), it is possible to reconcile the Pragmatic reconstruction of tradition with the Confucian veneration of the past. This paper argues for a Pragmatic Confucian approach to Chinese traditions that is selective in its transmission of the past and flexible enough in its 'preservation' to allow for progressive change. [ABSTRACT FROM AUTHOR]

Economic and political changes in formerly socialist economies affect migration patterns and gender relations in complex ways. The consequences of transition from planned to market economies for men and women, respectively, are manifested both in gendered migration patterns and gendered urban labour markets, where young migrant women now constitute an important part of the 'globalised' industrial working class of Southeast Asian cities. This paper analyses female rural-urban migration to industrial work in Lao PDR, one of Southeast Asia's smallest transition economies. Since the implementation of the New Economic Mechanism in Lao PDR in 1986, a process of feminisation of rural-urban migration has started and female employment in industries in Vientiane Capital increased. The paper highlights some of the consequences of economic transition for female rural-urban migrants, focusing on changing gender roles and women's status as industrial workers, both inside and outside factory gates. Copyright © 2010 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Based on extensive interviews, this study is the first systematic attempt to map the spatio-temporal evolution of production networks linking urban, state-owned enterprises and rural, township and village-owned enterprises in reform-era China. It identifies two distinct regimes of urban-to-rural subcontracting patterns and conventions. The first, which developed and prospered from the mid-1980s until the mid-1990s, brought rural workers and the countryside into a relatively extensive relationship with urban capital, and thus represented a partial transition to capitalism. Its violent reconfiguration in the wake of a series of sectoral crises in the late 1990s led to the widespread privatisation of rural enterprises, and the emergence and consolidation of a second regime that simultaneously constituted a significant intensification of relations, the capture of the rural by the urban, and a new stage in this region's transition. This paper argues that these regimes are analogous to the formal and real subsumption of labor to capital, respectively, and that subsumption may be a more useful analytic for understanding the process of capture and transition than primitive accumulation: the latter concept alone, without reference to the dynamics of the social/spatial division of labor, risks missing other ways that exploitive connections can be constructed between places. This paper thus seeks to recast the relationship between these two concepts, and to develop a larger vocabulary in which subsumption, like primitive accumulation, is both spatial and ongoing and internal to capitalist accumulation. [ABSTRACT FROM AUTHOR]

This paper develops a general equilibrium model to consider the effects of corruption caused by institutionalized privilege on economic welfare, the network size of division of labour and productivity. First a Walrasian equilibrium in a market economy is computed; then we consider the effects on welfare when a privileged group is chosen to work as high-level administrators. Finally, we allow for explicit collusion between administrators by introducing an administrator's agent who acts in the interests of all the administrators. The model shows that in equilibrium (fixed point) the degree of corruption, the degree of division of labour and productivity are interdependent. [ABSTRACT FROM AUTHOR]

Within a context of gradual privatization and rapid marketization in China, this paper draws on detailed research of the perceived impact these have had on the work, status and attitudes of different industrial relations ‘actors’ within seven enterprises in Guangdong and Shanghai in 1998–9. It will be shown that the main pressure for tightening control over the workplace has come from the development of markets and that privatization has had important but limited catalytic effect in this process. Considerable internal and external constraints restrict the impact of privatization, which stem from China's continued ambivalance towards capitalist market relations. [ABSTRACT FROM AUTHOR]

This paper develops a three-currency model to study the determinants of the demand for assets and liabilites denominated in an international currency and to shed light on the prospects for the renminbi as a budding international currency. We show that interest rate differentials would be only one of the factors shaping the renminbi's position, while other factors, including the correlation between foreign countries' economic growth and their bilateral exchange rates against the renminbi, and the correlation between exchange rates of the renminbi with other international currencies, would also be important. A broad interpretation of these findings is that the renminbi will likely be attractive to investors from high-income economies and fund-raisers from emerging market economies. [ABSTRACT FROM AUTHOR]

Over the past three decades, China has undergone tremendous economic and social change as a consequence of the transition from a centrally planned to a market economy. This paper examines a key feature of this transition - the privatization of the state-owned enterprises ( SOEs) - through both a theoretical model and empirical analysis. Using newly collected primary data from a variety of sources, we study how privatization of listed SOEs affects employment, wages, profits and other aspects of economic performance at the firm level. Our major finding is that privatization results in substantial downsizing of employment, increased labour productivity and rising profitability. [ABSTRACT FROM AUTHOR]

Based on an in-depth case study of a rural community, this paper documents the contemporary state of Chinese smallholder agriculture and the changes that it has been experiencing in the context of dramatic socio-economic transition through the lens of three main economic drivers: livelihood diversification, market conditions and government interventions. Results reveal that the change in Chinese smallholder agriculture has been complex and multidimensional. All three factors exert profound influence and shape the current state of Chinese agriculture. Massive rural-urban migration has resulted in labour shortages, which in turn have led to a reduction in agricultural diversity and land use intensity and a shift from traditional labour-intensive technologies to modern capital-intensive technologies. However, because of well-developed agricultural markets, input use levels are similar across farmer categories (such as income diversification), helping to maintain productivity. Furthermore, reduced profits from farming due to increasing input prices and decreasing output prices have exerted pressure on smallholders to increasingly turn to nonfarm activities and have also triggered a thriving informal land transfer market, which was previously non-existent. Policy implications include the need to strengthen local economies, improve market conditions, invest in rural infrastructures and facilitate smallholders' mobility. [ABSTRACT FROM AUTHOR]

This paper develops a classification of the emerging agrarian class positions in China today. Using an instrument based on rural households' combination of market positions in four markets - land, labour, means of production and product - I identify five agrarian classes: the capitalist employer class, the petty-bourgeois class of commercial farmers, two labouring classes of dual-employment households and wage workers, and subsistence peasants. This classification is then used as a heuristic device to organize the empirical analysis that examines how dynamics of agrarian change drive class differentiation in rural China. For the capitalist employer class, the analysis focuses on their diverse paths of accumulation; for the petty-bourgeois commercial farmers, their contingent resilience and tendencies of differentiation; and for the two classes of labour, the commodification of their subsistence. The state plays important but varying roles in all these processes. [ABSTRACT FROM AUTHOR]

This paper examines the debates over the decision to build the Three Gorges Dam, the subsequent flows of income to the firms involved in its construction, and the continuing implications of the dam for the Chinese space economy. The paper makes and justifies three claims. First, the construction project has been responsible for both dispossession and the formation of capital (primitive accumulation). But it is too simple to interpret the project as merely the face of modernity or development: proponents were reflecting traditional attitudes to bureaucracy and environmental management, whereas opponents sought liberalisation, marketisation, and opening up. It turns out that the concept of modernity, as a western programme introduced into China after the formation of the People's Republic, is of remarkably little value in understanding the construction of this dam. Secondly, the decision to build the dam reflects both structure and happenstance - particular political events and individuals were critical. Notably, the project shows few signs of having come into being to absorb over-accumulated capital: mega-projects like this do not have to satisfy any capitalist logic. Finally, I emphasise that such huge projects have long run effects on the structure of power in China - indeed, events at Three Gorges underpinned much of the later debate and struggle over dams on the Mekong, Salween, and Changjiang above Three Gorges. [ABSTRACT FROM AUTHOR]

Neoliberalism has become dominant in both thought and practice throughout much of the world since the early 1970s. In China, neoliberal ideas are growing fast, even as it festers and stagnates in capitalist economies. To capture this process, many scholars have extensively studied market politics in China, demonstrating how state functions are rearticulated downwards and outwards to allow local discretion and market formation. The result is a burly wave of urban entrepreneurialism, which becomes a key municipal strategy to enhance place-specific, socio-economic assets. However, such arguments neglect a counter-trend in which the state has deterritorialised and recentralised some key functions. This paper draws on two cases in urban land administration and state planning regulation to argue that state functions are being reassembled as a new post-crisis political instrument to reassert the functional importance of top-down regulatory control. Economic decentralization is now counterbalanced by the rise of state strategies to control the articulation of scales through which a more centrally consolidated power can be achieved. Rather than viewing markets as taking over the state and local territorial discretion overshadowing hierarchical administration, the paper emphasises the important role of state and top-down regulation in the current post-crisis context under transition. 摘要 自上世纪七十年代起，新自由主义成为了领导世界的主流思想及实践方向。市场革命极大地影响了发达国家与发展中国家现行的资本累积体制。尽管新自由思想思潮在资本主义经济体系的作用愈见滞后，但却在中国发展壮大。 有鉴于此，国内外学者开展了有关中国市场机制的研究，并认为下放经济管理权与政府职能直接导致了地方权力的扩张和市场的发育。结果就是城市企业主义的出现，并广泛成为城市政府强化地方社会经济优势的主要策略。然而，该种阐述忽略了一个重要的逆反现象，就是国家的管理体制也同时在经历'去地域化'、重建上级政府治理的过程。本文以城市土地管理与政府规划管理为例，来说明通过适当收权重建国家治理能力正成为一种新的管治工具。与权力下放不同，这种逆向趋势加强了上级政府的处理层级关系的能力。本文的主要论点为：市场并未取代政府，权力下放也并不代表'条条'管理的消失。在转型期的后经济危机时代，政府的作用与至上而下式的治理模式依然十分重要。 [ABSTRACT FROM AUTHOR]

The article discusses various reports published within the issue, including one by Antoine Sautenet on the Europe-China strategic partnership and another by Qianlan Wu on the making of a market economy in China.

It is well known that China's corruption problem has become more and more serious during the period of economic reform. This paper examines China's corruption problem with the help of several simple economic models. The author proposes the concepts of implicit corruption and explicit corruption. We explain how the granting of privileges has directly created implicit corruption in China's socialist market economy. We argue that the long-term existence of the same privileged group in Chinese society has led to widespread collusion among its members, and as a result, these privileged group members, by utilizing their monopoly power, are able to seize almost all the wealth created by the ordinary Chinese people. This seizure is accomplished by means of a two-part tariff in pricing their administrative service, which is the essence of the explicit corruption. Finally, we point out that, because both implicit corruption and explicit corruption are generated by China's political system, which grants and protects privileges, unless a political reform is initiated and privileges are eliminated, China's problem of corruption will never be solved. [ABSTRACT FROM AUTHOR]

Research in transition economics like China has sought and found explanations for strategic behaviour based on institutional and other social processes, leading to descriptions of China's emerging business system as 'network capitalism'. This paper argues, however that organizational capabilities and transaction costs are increasingly important influences on strategic choice as economic reforms proceed. An in-depth case study of of one firm's behaviour in two different asset markets - R&D and distribution in the Chinese pharmaceutical industry - illustrates fundamental differences in firm strategies for securing these assets. To account for this variety and move beyond the homogeneity implied by prior research, we propose a framework for differentiating the transition trajectories for different types of complementary assets. We propose conditions under which all three perspectives - institutional and social structure, organizational capabilities and transaction costs - predict similar trajectories and firm strategies, but different decision processes, and when their predictions differ. [ABSTRACT FROM AUTHOR]

Many scholars note that since the early 1990s, the CCP has been invoking Chinese nationalism to rescue the party's declining ideological legitimacy. Probing China's political indoctrination (thought work), this article makes two contributions to such conventional consensus. First, empirically it argues that the rise of nationalism in the 1990s was not altogether new. Instead, from the early 1980s, the CCP had been switching to "patriotism." Second, this article argues that the communist regime's transition to nationalism was hesitant. It was an interactive process whereby multiple layers of the society and elite, confused alike, worked together to explore whether and how to embrace nationalism. The nation‐building also bore the imprint of the revolutionary and state‐socialist past. This article suggests that though the nation‐state has become the dominant political format of the world, as a pattern it fuses with a society's traditions, preconditions, and internal struggles. Such fusions made nation‐building in the non‐Western world unseparated from quasi‐national legacies such as revolution and socialism and could yield consequences other than capitalism and democracy. [ABSTRACT FROM AUTHOR]

During the transition to its new status as a Special Administrative Region of China, the future of Hong Kong was the focus of the world's attention. This paper looks at the futures that were projected at the time of the transition, frequently on the basis of reference to the need to preserve some special key to the successes that the city had accomplished in the past Much of this future is already imminent in the infrastructural projects that are in already in progress, and which are based on expectations about the role of Hong Kong in China and the world. Finally, the essay explores how ordinary citizens have been living the transition. [Hong Kong, China, future, planning, transition] [ABSTRACT FROM AUTHOR]

The concern of this paper is with the sexual division of care in Hong Kong, China, and mainland China. As will be seen in the later sections, women in China and Hong Kong are expected to take up far more caring responsibilities than men. The aim of this paper is to explore the extent to which the sexual division of domestic labour is influenced by traditional Chinese values and contemporary political and economic factors. Certainly an examination of the cultural factor sheds considerable light on the gender division of care. However, it is still not sufficient to help us understand the whole picture. Attention should also be paid to the political and economic factors. The state policy occupies a central role in reinforcing the social construction of caring relationships. To understand the social construction of women as carers in traditional Chinese society, it is necessary to study the nature of the family because most of the care-giving processes take place in the domestic sphere. Hong Kong is located on the south coast of China. Of the 6 million population, over 90% are Chinese. It is often seen by the world as a typical capitalist society.

The Shenzhen Special Economic Zone (SEZ), one key element in the great Chinese effort to modernize the economy and to build bridges between capitalism and communism, has survived its first decade As there are several useful accounts of the first period of the SEZ up to the mid-1980s (Jao and Leung, 1986; Wong and Chu, 1985), this paper will concentrate on the more recent phase in an effort to analyse how successful the SEZ has been in achieving its stated objectives as part of the Chinese movement for economic and latterly social reform, and the consequences of the policies and practices of the SEZ for the development of south-east and ultimately the whole of China. Underlying this analysis is the conviction that studying Shenzhen, which looks rather exceptional, might actually tell us a great deal about the problems of socialist development and help us to theorize it more satisfactorily. [ABSTRACT FROM AUTHOR]

Copyright of Politics & Policy is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The neglect of questions of informality in the study of global production networks (GPNs) is curious given the scale and reach of informality in the contemporary global economy. In this article I advocate a tighter integration of informality into the questions and approaches we deploy in the study of GPNs, not simply as an empirical area of enquiry but also in theorizing, first, how GPNs work and, second, with what social consequences. Drawing on 'structuralist' insights into the relationship between informality and formality in capitalist economies, I argue for a recognition of the ways in which these are structurally blended with one another to the extent that their dichotomization is empirically and theoretically misconceived. I go on to explore the ways in which informality is created and exploited within GPNs in a 'top-down' manner - that is, by capital, firms, employers and states - and the 'bottom-up' dynamics of informality, which frequently are constitutive of 'adverse incorporation' in GPNs for large numbers of workers, generating and perpetuating forms of poverty, marginalization and vulnerability. [ABSTRACT FROM AUTHOR]

BSTRACT [ABSTRACT FROM AUTHOR]

The Master and Servant Act was a law that allowed the use of penal sanction against workers for breach of contract in nineteenth century Britain. For scholars who believe that wage laborers under capitalism are free from “extra-economic” coercion, this law was an anomaly. One explanation suggests technological backwardness during the early stages of capitalism as the cause. In this paper I will challenge this account and offer an alternative explanation. As the British Empire expanded, the same law was enacted in many British colonies. If it was the process of capitalist production that rendered the Master and Servant Act necessary, this explanation should also apply to the British colonies. By focusing on Hong Kong, I show that this was not the case. Instead, I show that the use of judiciary coercion could be explained by Bourdieu's notions of doxa, habitus and field. [ABSTRACT FROM AUTHOR]

This article quantifies the comparative performance of China in several dimensions. Firstly, it shows that China's move from a command to a market economy was less abrupt and more successful than that of 29 other economies making a similar transition. Secondly, while official estimates show annual GDP growth of 9.6 percent in 1978–2003, this is reduced to 7.9 percent after adjustment for exaggeration of industrial performance and growth in non-material services. Thirdly, as the exchange rate understates China's achievement, a purchasing power parity (PPP) converter is necessary to measure comparative level of performance. Our PPP converter shows that China in 2005 was the world's second largest economy, with a GDP about 80 percent of the U.S. It is assumed that China will have overtaken the U.S. as the world's biggest economy before 2015. Until recently, the World Bank estimate of the PPP for China was close to that of Maddison, but the Bank's new estimate for 2005 shows Chinese GDP about half this level. The Bank's new estimates for China and other Asian countries are not plausible, and this paper advances several reasons for rejecting them. Finally, energy use per head of population is a good deal smaller than that of the U.S., and its total energy use for a much bigger population is likely to be somewhat smaller than that of the U.S. in 2030. However, heavy dependence on dirty coal means that it will have bigger carbon emissions than the U.S. This is a major problem as Beijing and other big cities already have severe pollution problems. [ABSTRACT FROM AUTHOR]

In early 1992, Deng Xiaoping opened the way for China to experiment with and then adopt the Anglo‐Saxon style of development through capital markets. With the passage of nearly three decades, perhaps now is a good time to offer at least a preliminary assessment of how successful China's experiment with finance capitalism has proved. As part of this account of China's alternating embrace of and clampdown on Western‐style capitalism, the author constructs a rough financial balance sheet for China's state sector today that reflects a number of important developments and realities. First and foremost is the ad hoc fiscal system in which Beijing has for decades negotiated with local governments the amount of revenues to be turned over—in return for expected subsidies. The 1994 Budget Law was a compromise with the local governments aiming to codify the practice that Beijing would collect most of the revenues and share part of them with the poorer provinces. But although revenues increased dramatically, they failed to meet the local governments' aspirations; and because such governments were left with less money and more social spending responsibilities, they ended up creating and relying on a "shadow" fiscal system—one in which the accumulating debts of the local governments do not show up in national income accounts. But China's entry into the WTO in 2001 changed the entire game. With foreign investment, which was the second critical factor, came related supply chains and an export sector that became the envy of the world. As a consequence of such investment, the principal forms of Chinese savings—corporate and household bank deposits—soared. During the first decade of this century, the country developed a middle class, the first in its history, comprising some 300 million Chinese. Helping to fuel all this activity and growth, stock markets both domestic and international generated tens of billions of U.S. dollars in capital for Chinese state‐owned enterprises. But then the global financial crisis hit, and China embarked on what has become its now decade‐long financial stimulus program, a program of social spending made possible and effectively funded by the household wealth stored by China's (largely state‐owned) banks. From a balance sheet perspective, the state's net worth has largely disappeared under a mountain of debt that had been extended overwhelmingly to parts of the state sector itself. And on the basis of the most recent available Chinese government data—whose endpoint is 2018—the author suggests that the value of China's state assets today may well be insufficient to meet its obligations to Chinese households—much of them in the form of deposits in (the mainly) state‐owned banks with arguably negative net worth. In sum, China's government, by introducing and then reversing many of its economic reforms, has sacrificed inefficiency and economic value to preserve what it values the most—control and social stability. The government's legitimacy rests on the support of Heaven's Mandate, an old saw the Chinese people continue to believe. But one thing has clearly changed over the past 30 years: any major loss of confidence in the party's management of limited capital resources would likely have serious consequences for China and the world. [ABSTRACT FROM AUTHOR]

This collection is concerned with understanding the nature of China’s spatial development during the transition to a socialist market economy. It does so primarily by questioning the applicability of the ‘desakota’ model and extended metropolitan region (EMR) concept to the contemporary Chinese space economy. Yu Zhu’s contribution extends the ‘desakota’ model by applying it to rural areas without the attraction of large cities. Wing-Shing Tang and Him Chung’s contribution discusses illegal land use and construction to highlight the rural-urban transition’s negative and disintegrative aspects glossed over by the ‘desakota’ model, which stem from the extension of urban administration to former rural areas and the redistributive effects of land use reform. Andrew Marton sees the original ‘desakota’ model being rejuvenated by introducing the notion of rural agglomeration, a clearer recognition of local administrative structures and an appreciation that development issues now take place within a global-local framework. George Lin explores the lingering effects of rural origins on Chinese identity and how this affects subsequent social and commercial groups within the Chinese diaspora. Peter Rimmer and Claude Comtois show how changes in China’s transport and telecommunications industry underlie, to a significant degree, the restructuring of China’s space economy and the country’s links to the rest of the world. Overall the contributions highlight that a new consensus will be required for any revised model of the Chinese space economy if this is to provide guidance for planners engaged in restructuring Chinese space in the new millennium. [ABSTRACT FROM AUTHOR]

A new generation of elites distinguished by their cultural endowments has emerged in China. Unlike the older generation of elites who signaled status through the display of wealth but shared similar tastes, the new generation of cultured elites has sophisticated, often Western‐oriented "highbrow" tastes in their cultural consumption. By comparing the upbringings and the tastes of interviewees from various backgrounds, this study suggests a widening taste‐chasm between the elites and the underclasses in urban cities. The social process behind this is argued to be the rapid formation of cultural capital in China, in which parental privileges accumulated in the market economy converted into cultural privileges in the new generation of new elites. [ABSTRACT FROM AUTHOR]

The main purpose of this article is a brief analysis of China and its economic diplomacy regarding Portugal, as a Member State of the European Union. The analysis was developed throughout several points. First, the Chinese model of socialist market economy within a global environment configured by liberal ideas. Second, the main characteristics of China's economic diplomacy model, one where the economic and the political are closely intertwined. Third, a focus on the economic attractiveness that China exerts upon Portugal, in particular, the Chinese investment in the Portuguese energy sector. Finally, some conclusions about the possible consequences for Portugal economic and strategic dependence on China in a world where the US‐China rivalry is growing. [ABSTRACT FROM AUTHOR]

On 1st July 1997 Hong Kong will be transformed from a British colony into a Special Administration Region (SAR) of the People's Republic of China. Although the Basic Law, a mini-constitution for the future SAR government, states that "Hong Kong's capitalist system and lifestyle will remain unchanged for 50 years after the establishment of the SAR", changes are perceived to be inevitable, not least in respect of the welfare policies to be implemented by the future SAR government. Indeed, since the signing of the Joint Declaration in t984 between the British and Chinese Governments on the future of Hong Kong, the existing Colonial Government has been enlarging its role in the social services and making relevant policies more responsive to the needs of the people. These reforms have largely been carried out in line with the democratization process which Hong Kong has been undergoing in recent years. To what extent will these changes in welfare policies continue after 1997? It is argued here that with the enlargement of democracy, and especially the establishment of political parties claiming to represent the interests of the people, it would no longer be possible for Hong Kong to return to residual-type welfare programmes. While it would be unlikely for Hong Kong to develop into a "welfare state", the future development of social services in Hong Kong would probably command widest acceptance if policies keep in line with the prevalent welfare ideology which stresses, on the one hand, the self-reliance of the people and, on the other, the responsibility of government to look after weaker members. [ABSTRACT FROM AUTHOR]

COSCO and China Shipping Container Lines (CSCL) merged and reorganized as COSCO Shipping Lines in 2016. Through using a complex network methodology, we analyze the spatial patterns of their shipping networks before and after the merger. We evaluate the integration effects based on two main dimensions: network and hub economies. While complementarities are found between COSCO and CSCL networks before the merger, COSCO Shipping Lines increased the total number of service nodes and shipping routes significantly. The merger also had the effect of strengthening the hub capacity of 7 of the top 15 hub ports in the main markets covered by the new company. Results underline that this strategy of overseas pivotal ports promoted the development of hub economy and regional market expansion. [ABSTRACT FROM AUTHOR]

Chinese investment in Africa has stimulated debate. Africa needs foreign investment for its economic development. China assists other developing economies. However, Chinese investment focuses more on expropriating colonized wealth and failed to provide the same legal property. [ABSTRACT FROM AUTHOR]

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Incorporating instrumental and political views of corporate social responsibility (CSR), this study examines the relationship between CSR and corporate financial performance in China's unique institutional context, which is featured by the coexistence of a strong government and a transitional market economy. Our results show that (a) CSR positively affects financial performance, (b) state ownership weakens the relationship between CSR and financial performance, and (c) industry competition strengthens the relationship between CSR and financial performance for both state‐owned and non‐state‐owned firms. This study reveals that, although both an instrumental view and a political view of CSR are applicable in China, the motivation to create economic benefits for firms dominates, and market competition increases the strategic use of CSR. [ABSTRACT FROM AUTHOR]

Very heterogeneous patterns of firm employment growth characterize the Chinese provinces, suggesting the existence of a relationship between these and regional factors. This empirical work explores this topic by providing novel evidence of the role played by regional institutional and regional factors in firm employment growth in China during the decade 1998–2007, an important period in the Chinese transition towards a market economy. The results show that controlling for the internal determinants of firm performance, the firms located in provinces converging faster towards a market economy, exhibiting relatively better patterns (in terms of agglomeration, endowment of human capital, innovation and environmental protection) tend to expand their employment relatively more. These findings confirm the existence of a macro–micro‐connection as to what firm heterogeneity is concerned, as they reveal a differential growth channel along the regional dimension. In particular, local progress in government–market relationships appears as the most relevant dimension of marketization process. Given the regionally decentralized institutional system in China and considering its process of transformation, these findings inform local authorities concerned with the promotion of regional employment. [ABSTRACT FROM AUTHOR]

This article restores early colonial Hong Kong to a key role in the history of capitalism and the integration of the Pacific. It argues that in the 1840s Hong Kong became the first identifiably capitalist Chinese society and a nexus between the China coast and both the expanding British and US imperial systems. It first demonstrates how Hong Kong's colonial regime swiftly re‐structured the island's social‐property relations and scaffolded its residents toward the ceaseless accumulation of capital. It then examines how this nascent node of Chinese capitalism integrated with the westward expansion of American capitalism amid the California Gold Rush and concludes by analyzing how Hong Kong's transpacific networks facilitated the expansion of capitalist systems into late nineteenth‐century China, most especially Shanghai. [ABSTRACT FROM AUTHOR]

Discusses the need for China to establish a well-defined system of private property rights to safeguard investment and stimulate trade. Impact of corruption and inefficiency on capitalism in China; Analysis of pertinent topics and relevant issues; Implications on economics.

Abstract: I propose in this article a new interpretation of the evolution of post‐communist systems by comparing the evolutions in Central and Eastern Europe and in China. Transition is reinterpreted as the result of a collapse of communist state structures in Central and Eastern Europe and, in China, in contrast, as the result of the will to prevent such an outcome. This reconceptualization helps us to better understand the emergence of bad institutions and corruption in Eastern Europe under the market economy as well as the absence of political liberalization in China and the strengthening of the power of the Communist Party in recent years. [ABSTRACT FROM AUTHOR]

Abstract: Over the past 9 years since the implementation of China's Enterprise Bankruptcy Law in 2007, it has contributed to some measures of regulating market practice and rearrangement of market resources and has become an integral part in an improved legal system of China's market economy. However, a closer look at the effect of implementing the Enterprise Bankruptcy Law shows that the number of bankruptcy cases after its implementation, instead of increasing, has taken on a trend of decreasing. Even under the influence of the 2008 financial crisis, no significant increase in the number of Chinese bankrupt enterprises means that China's Bankruptcy Law failed to play its due role, leaving a large gap as desired. As such, this article aims to examine the problems arising from the implementation of the Bankruptcy Law and, taking this as guidance, probe into the reasons hidden behind and propose possible improvement measures. It is expected that the Bankruptcy Law would increasingly play a key role in the development of China's market economy, particularly under the current situation where Chinese government proposes to clean up zombie businesses. Copyright © 2018 INSOL International and John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Relational geographies of capital and consumption between Hong Kong and mainland China have been forming through tourism engagement in Hong Kong and the development of model Hong Kong malls in China. This analysis of urban restructuring for the consumer economy identifies how landmark Hong Kong malls are reproduced in major cities of China by networks of Hong Kong property firms and mainland elites. Adapting Leslie Sklair's formulation of architectural iconicity in the culture-ideology of consumerism, this economic relationship, which restructures urban space, constructs iconic built forms and develops Chinese consumerism, marks hegemonic opportunities of a national capitalist class, suggesting how Chinese state capitalism and its Hong Kong networks limit and incrementally engage transnational capital while instantiating Hong Kong-style consumer iconicity. New malls in mixed-use developments in China often occupy sites of historical markets and thus affirm Sklair's prediction that iconic architecture increasingly proclaims consumer space while claiming historic forms of public space. [ABSTRACT FROM AUTHOR]

The rapid expansion of self-employment has accompanied the rise of a market economy in urban China. According to the National Bureau of Statistics of China, the state-owned enterprises' share of the country's gross domestic product has declined from over 90 percent in 1978 to below 50 percent in 2005. Urban entrepreneurship and self-employment is an emerging force that is shaping the economic and physical form of Chinese cities but is understudied in the academic literature. Using the 2007 Chinese Household Income Project ( CHIP) data, we investigate the rate and scale of urban entrepreneurship across Chinese cities, as well as the characteristics and earnings associated with self-employment as compared to wage employment. We pay particular attention to the financial capital, human capital, and social capital factors underlying entrepreneurial entry and distinguish between 'necessity entrepreneurs' and 'opportunity entrepreneurs' and their respective socioeconomic characteristics. [ABSTRACT FROM AUTHOR]

Scholarship on the institutional foundations of Chinese-style capitalism emphasizes the impact of liberal reformers and China's participation in international organizations, devolution of economic decision making and local experimentation, and the proliferation of market actors to explain their origins. This article investigates distinct patterns of sectoral variation in market governance in China today, examining the extent and scope in which dominant forms of market coordination and distribution of property rights reflect variation in national goals of economic power, security, and growth; structural sectoral attributes; and the path-dependent effects of institutional arrangements. The reinforcement of state coordination and the dominance of state ownership and shareholding in strategic industries, such as telecommunications, and the relinquishment of state control and the dominance of market stakeholders in nonstrategic sectors, such as textiles, characterize the rise of bifurcated capitalism in the period before and after China's accession to the World Trade Organization. [ABSTRACT FROM AUTHOR]

Cooperatives, family farms and dragon-head enterprises are emerging as new subjects of agriculture in China and are being promoted by the Chinese government as engines of agricultural development. The current dynamics of increasing capitalization of agriculture in China has been characterized by scholar Philip Huang as 'Capitalization without Proletarianization'. Through case studies, we examine the dynamics of accumulation in Chinese agriculture, as well as the government's agriculture policy shift. We argue that capitalist dynamics exist in Chinese agricultural production and they come from above and below. We also argue that Chinese government's policy shift towards de-peasantization began in the early years of the rural reform. [ABSTRACT FROM AUTHOR]