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How China Opened Its Door: The Political Success of the PRC's Foreign Trade and Investment Reforms
Paperback
Series: Integrating National Economies: Promise & Pitfalls
EconomicsInternational Relations
ISBN13: 9780815778530
Publisher: Brookings Institution Press
Published: Oct 1 1994
Pages: 148
Weight: 0.46
Height: 0.42 Width: 6.02 Depth: 9.11
Language: English
China's transformation from a virtually closed economy to a major trading nation is an incredible success story. Since 1979 the country has changed it's policies to promote increased foreign trade and investment, thereby attracting more direct investment to China than to any other developing country in recent years. What brought about this change? How, after thirty years of being walled off form the world economy, did China open its door?
Shirk's analysis details the political logic behind the economic reform, illustrating how China's leaders were able to win support for reform politics among Communist Party and government officials. Despite strong vested interest in the status quo, the communist government successfully adopted reforms through gradualism, administrative decentralization, and ad hoc particularistic negotiating with individual subordinates. Shirk explains these distinctive features of China's path to reform.
China has achieved shallow integration with great success. Whether deeper integration with the world economy will automatically follow remains unclear. Shirk concludes that China will not be able to achieve reform in the areas of deep integration--intellectual property rights, environmental protection, and labor treatment--in the same way it achieved shallow integration. She argues that imposing international standards will require rapid enforcement, central regulation, and uniform rules. If China can meet these challe
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