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1. At a Dead End? China’s Drive to Reform Defense Science and Technology Institutes Stalls

Author:
Arthur S. Ding and K. Tristan Tang
Publication Date:
01-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Since becoming China’s top leader ten years ago, General Secretary Xi Jinping has sought to sustain a three-decade effort to reform the defense industry in order to advance the development of defense technology and improve the People’s Liberation Army’s (PLA) capabilities. Recent reforms have focused on transforming defense science and technology (S&T) institutes into enterprise-like entities, but due to political and economic impediments, progress has been slow. This article examines the rationale for defense industry reform, assesses progress in implementation and explains difficulties encountered in the reform process.
Topic:
Science and Technology, Reform, and Defense Industry
Political Geography:
China and Asia

2. Decoding China’s Dilemma: The Difficulties Of Economic Reform

Author:
Sunny Cheung
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
On November 27, the State Council of the People’s Republic of China (PRC) unveiled a new policy, titled “Notice on Strengthening Financial Support Measures for the Private Economy (关于强化金融支持举措 助力民营经济发展壮大的通知)” (People’s Bank of China, November 27). The notice introduces a set of 25 measures crafted to reinvigorate the private sector. These prioritize key areas such as technological innovation, green initiatives, and primary support for small to medium-sized enterprises. The package includes increasing financial assistance and gradually enhancing the proportion of loans to private businesses. It underscores the importance of facilitating credit, lowering interest rates, issuing bonds, and other kinds of financial instruments to meet the varied financing needs of private enterprises. This policy measure echoes mandates put forth during the 20th Party Congress in October 2022 and Central Financial Work Conference held at the end of October 2023 in response to China’s deepening economic woes (Xinhua, November 1). This backdrop has prompted policies aimed at addressing the challenges facing the Chinese economy. In October, the PRC National Bureau of Statistics announced that the Consumer Price Index (CPI) fell by 0.2 percent year-on-year—worse than expected and marking a contraction since July (RTHK, November 9). This ominous data, which includes price deflation for both July and October this year, is indicative of significant weakness in domestic demand, particularly due to the underperforming real estate market, which affects citizens’ expectations for asset prices. The ongoing economic downturn in China also refutes the notion that economic chaos would clear up after the abandonment of the Zero-Covid policy. This situation is also similar to the Japan-style recession in the 90s in which consumption and investment are further repressed in favor of paying down debt. China’s recent response has been to implement a series of economic stimulus measures in an attempt to revive its weakening national economy.
Topic:
Economics, Reform, Business, and Banking
Political Geography:
China and Asia

3. The Chinese Debate on Economic Reform

Author:
Arran Hope
Publication Date:
09-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
A steady drumbeat of ominous data and troubling commentary on the state of China’s economy has punctuated the summer months. Reports from the commentariat in the anglosphere have provided diagnostic analysis and detailed potential policy solutions that the Chinese government might pursue. However, China’s central decision makers in the Politburo or in the National Development and Reform Commission (NDRC), are more likely to take their cues from internal advisors and domestic experts within the PRC than from those outside. As such, one fruitful exercise is to take the temperature of voices within the system to determine the extent to which their perceptions align or diverge from those in the West, and to ascertain which views carry weight with the final arbiters of economic policy in Beijing. By doing so, analysts outside of China may better comprehend the future (mis)steps that China will take as it struggles to achieve its aim of “basically realizing socialist modernization.” In July, the Chinese government held several meetings and released documents pertaining the economy. On July 24 the Politburo met to discuss the economy as it usually does this time of year. But on the same day, a 17-point plan was issued by the NDRC, following on from a 31-point plan co-issued by the State Council and the Central Committee ten days prior. These send a clear message about the concern in government over China’s straitened circumstances. Indeed, just this week, the NDRC announced a new “private economy development bureau” to further support private industry (NDRC, September 4). The assessment of the situation is put bluntly in the Politburo readout: “the current economic system is facing new challenges… insufficient domestic demand, difficulties in some enterprise’s operations, multiple risks in key areas, and a complex and severe external environment.”
Topic:
Development, Economics, and Reform
Political Geography:
China and Asia

4. Will the Xi Jinping Leadership Take Up Reformist Policies After the 20th Party Congress?

Author:
Willy Wo-Lap Lam
Publication Date:
09-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
That President Xi Jinping and his faction will dominate the 20th Party Congress is apparent from the Politburo announcement that the week-long, five-yearly conclave will take place on October 16. The Politburo meeting, which was held on August 30, said that the guiding principle of the party and country would remain “Xi Jinping Thought on Socialism with Chinese characteristics for a new era” (Gov.cn, October 16). The Politburo reasserted that the Chinese Communist Party (CCP) would follow principles laid down by Mao Zedong, Deng Xiaoping, Jiang Zemin, Hu Jintao, and above all, Xi Jinping. However, the dictums on reform and the open door – as well as the “lie low” foreign policy – promulgated by “Chief Architect of Reform” Deng in the 1980s and 1990s were conspicuously absent from the Party Congress announcement. Instead, the communique emphasized the so-called “three continuances” (三个继续, san ge jixu). This is a reference to Xi’s efforts to uphold Mao Zedong-style “common prosperity” (共同富裕, gongtongfuyu); to sustain “party construction” (党的建设 (dang de jianshe) in order to ensure the loyalty of cadres; and to work toward the formation of a “community with a shared future for mankind” (人类命运共同体,renlei mingyun gongtongti) (Xinhua, August 30; Ming Pao, August 30).
Topic:
Politics, Reform, Leadership, Domestic Politics, and Xi Jinping
Political Geography:
China and Asia

5. The Functions and Problems of China’s State-Owned Economy

Author:
Wei-xiao Jia
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
Polish Political Science Yearbook
Institution:
Polish Political Science Association (PPSA)
Abstract:
At the national symposium on the reform of state-owned enterprises, General Secretary Xi Jinping gave important instructions that state-owned enterprises are important forces in strengthening the country’s overall strength and safeguarding the common interests of the people. Therefore, the country must make state-owned enterprises „stronger, better, and bigger”. Huge objections arose in the academic field. This article thoroughly analyzes China’s state-owned economy from the perspective of Marx’s historical materialism, national productivity, and social development, and clarifies the historical status and role of China’s state-owned economy. At the same time, this article comprehensively analyzes the economic significance of making state-owned enterprises „stronger, better, and bigger” from the perspective of total factor productivity, and proposes that since the state-owned economy is backed up by the state, investing in technology research and development has its advantages. However, because the state-owned economy is biased toward administrative instructions, it often lacks efficiency, so if the state-owned economy wants to become „stronger, better, and bigger”, it must undergo reforms in terms of management efficiency.
Topic:
Economics, Governance, Reform, State Building, State-Owned Enterprises, and Productivity
Political Geography:
China and Asia

6. Disposing of “Zombies”: Why the Reform of Non-Performing State-Owned Enterprises Has Gotten Even Harder

Author:
April A. Herlevi
Publication Date:
03-2020
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Normally at this time of year, the Chinese Communist Party (CCP) and the People’s Republic of China (PRC) government would be holding the large plenary meetings known as the “Two Sessions” (两会, lianghui). China watchers would be monitoring these meetings to assess whether and how the CCP is achieving its 2020 goal of achieving a “moderately prosperous society” (小康社会, xiaokang shehui). However, the COVID-19 outbreak (China Brief, multiple dates) has not only halted key meetings (National People’s Congress, February 27), but has also put into question many of China’s economic goals. This includes key goals discussed at the Central Economic Work Conference (CEWC) held in December 2019, which focused on “three categories of risk: financial, environmental, and external” and “identified six areas of priority for China’s 2020 economic policy agenda” (China Brief, December 31, 2019). The 2019 CEWC meetings identified at least 10 distinct issues to be pursued in order to move China on the path towards a more balanced economy (Xinhua, December 12, 2019). This article will focus on one aspect of China’s efforts to achieve “high-quality development” (高质量发展, gao zhiliang fazhan): the dismantling of “zombie firms” (僵尸企业, jiangshi qiye). CCP efforts to deal with non-performing and debt-ridden “zombies” has been an ongoing effort since at least 2015. The inclusion of policies to reduce non-performing state-owned enterprises (SOEs) in the economy follows official guidance set forth in 2016, and several policy actions taken since. First, this article will discuss what “zombie firms” are, and why they are a drag on the economy; second, it will summarize the key policies intended to dismantle zombie firms. It will then examine why zombie firms are so difficult to dismantle, and conclude by noting that the COVID-19 outbreak and the resulting economic losses due to quarantines are likely to further disrupt the ability of provincial governments to deal with non-performing firms and accumulating debt. As a result of these factors, zombie firms are likely to linger for some time to come.
Topic:
Reform, Public Health, Pandemic, COVID-19, and State-Owned Enterprises
Political Geography:
China and Asia

7. The CCP’s Renewed Focus on Ideological Conditioning, Part 2: The New Five-Year Plan for Training Party Cadres

Author:
John Dotson
Publication Date:
12-2019
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
The leadership of the Chinese Communist Party (CCP) has long pointed to the collapse of the Soviet Union as a cautionary example, and party organs have produced books and films that warn of the dire consequences that would follow from any steps to loosen the CCP’s grip on the economy, public discourse, or political power. These materials have been made the focus of mandatory study under CCP General Secretary Xi Jinping (SCMP, November 18, 2013). Alongside alleged villains such as the reformist Mikhail Gorbachev, ideological laxity among Soviet Communist Party members has been identified as a key factor in the downfall of the Soviet state. [1] To address this, the CCP leadership has undertaken concerted efforts throughout 2019 to bolster ideological indoctrination among its own membership. Party members have been made subject to mandatory use of the smartphone app Xuexi Qiangguo (学习强国), which was introduced in January of this year. [2] Users are required to meet quotas of “study points” for spending time on the app, reading and commenting on articles, and taking tests about party policies (SCMP, February 14, 2019). In addition to serving as a channel for ideological indoctrination, the app also serves as a surveillance tool: it both “collects and sends detailed app log reports on a daily basis, containing a wealth of user data and app activity,” and contains “code that amounts to a backdoor to rooted devices… granting complete administrator-level access to a user’s phone” (Open Technology Fund, September 12). The CCP’s current official ideology is “Xi Jinping Thought on Socialism with Chinese Characteristics in the New Era” (习近平新时代中国特色社会主义思想, Xi Jinping Xin Shidai Zhongguo Tese Shehui Zhuyi Sixiang). This ideological program is grounded in Xi’s ever-growing cult of personality, and relies heavily on the dogmatic repetition of slogans rather than clearly articulated ideas. In broad terms, it strikes three general themes: (1) achieving the “China Dream” (中国梦, Zhongguo Meng) of restored national greatness; (2) unyielding CCP control over politics and Chinese society; and (3) continuing reforms in party-state institutions and governance. The latter element is often expressed in terms of greater centralization of power at the top echelons of the CCP, and demands for stricter personal loyalty to Xi Jinping (China Brief, November 19). [3]
Topic:
Politics, Reform, Ideology, and State Building
Political Geography:
China and Asia

8. Assessing China’s Financial Reform: Changing Roles of the Repressive Financial Policies

Author:
Yiping Huang and Tingting Ge
Publication Date:
01-2019
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
When China began economic reform in 1978, it had only one financial institution, the People’s Bank of China (PBOC), which, at that time, served as both the central bank and a commercial bank and accounted for 93 percent of the country’s total financial assets. This was primarily because, in a centrally planned economy, transfer of funds was arranged by the state and there was little demand for financial intermediation. Once economic reform started, the authorities moved very quickly to establish a very large number of financial institutions and to create various financial markets. Forty years later, China is already an important player in the global financial system, including in the banking sector, direct investment, and bond and equity markets. However, government intervention in the financial system remains widespread and serious. The PBOC still guides commercial banks’ setting of deposit and lending rates through “window guidance,” although the final restriction on deposit rates was removed in 2015. Industry and other policies still play important roles influencing allocation of financial resources by banks and capital markets. The PBOC intervenes in the foreign exchange markets from time to time, through directly buying or selling foreign exchanges, setting the central parity, and determining the daily trading band. The regulators tightly manage cross-border capital flows, and the state still controls majority shares of most large financial institutions.
Topic:
Economics, Foreign Exchange, Reform, Financial Markets, and Banks
Political Geography:
China and Asia

9. Clientelism with Chinese Characteristics: Local Patronage Networks in Post-Reform China

Author:
Wooyeal Paik and Richard Baum
Publication Date:
01-2015
Content Type:
Journal Article
Journal:
Political Science Quarterly
Institution:
Academy of Political Science
Abstract:
WOOYEAL PAIK and RICHARD BAUM argue that a growing number of Chinese feel frustrated by and alienated from local government agencies. They argue that clientelist alliances constitute a growing threat to the stability of the Chinese Communist party. - See more at: http://www.psqonline.org/article.cfm?IDArticle=19317#sthash.m3LZzRfU.dpuf
Topic:
Government and Reform
Political Geography:
China

10. China's Political-Economic Institutions and Development

Author:
Chenggang Xu
Publication Date:
10-2015
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
After more than three decades of economic reform, China has transformed from being one of the poorest economies in the world to being the second-largest economy measured by nominal exchange rates, or the largest economy measured by purchasing power. As such, it is important to elucidate the determinants of China’s future development. This article will focus on China’s institutions. I argue that although the size of China’s economy is extremely important in terms of its impact on the global economy, it is misleading to ignore political and economic institutions. Indeed, forecasts based on extrapolating past trends could be erroneous (see Pritchett and Summers 2014). China was the largest economy in the world before the end of the 19th century but then lost ground to Western nations that established the rule of law and free trade. To understand China’s past and future development, one has to examine its institutions.
Topic:
Economics, Reform, and Global Political Economy
Political Geography:
China and Asia

11. “I will change things in my own small way”: Chinese Overseas Students, “Western” Values, and Institutional Reform

Author:
Stig Thogersen
Publication Date:
09-2015
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
The article is based on a longitudinal study of Chinese college students who studied abroad as part of their BA programme in Preschool Education. It first examines the Chinese discourse on preschool education in order to understand the current situation in the students’ professional field. The main section then discusses stu- dents’ attitudes to what they perceived to be key values and principles in early childhood education in the West: freedom, individual rights, equality, and creativity. Students generally expressed strong support for these values and wanted to reform Chinese institutions according- ly. The article argues, based on this case, that while Chinese students abroad may not see themselves as the vanguard of macro-level politi- cal reforms, some of them certainly want to play a role in the gradual transformation of Chinese institutions in their respective professional fields.
Topic:
Education, Culture, Reform, and Students
Political Geography:
China and Asia

12. The Economy-Security Nexus in Northeast Asia

Author:
Motoshi Suzuki
Publication Date:
11-2013
Content Type:
Journal Article
Journal:
International Relations of the Asia-Pacific
Institution:
Japan Association of International Relations
Abstract:
The Northeast Asian region has attracted at least two types of international relations analyses. A first type focuses primarily on military and hard security and investigates changes in states' power and the politics of coercion, balance of power, and alliances. A second type is interested in cross-border economic activities, regional interdependence, and institutionalization and then examines the states' policies of development, trade, money, and technology, as well as the politics of institutional building and reform. T.J. Pempel's edited volume synthesizes the two approaches by viewing the mutually shaping interactions between economics and security as a major feature of regional politics. The book is a fruit of collaborative efforts by American, Japanese, South Korean, and Chinese scholars who provide in-depth analyses of recent developments in the region.
Topic:
International Relations, Security, and Reform
Political Geography:
Japan, China, America, Asia, South Korea, and London

13. Online Consultation and Citizen Feedback in Chinese Policymaking

Author:
Steven J. Balla and Zhou Liao
Publication Date:
11-2013
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
In recent years, the Chinese government has increasingly utilised online consultation as a means of providing citizens with opportunities to offer feedback on draft laws and regulations. As little is known about the operation of online consultation, this article analyses the content of citizen feedback submitted on a revision to China's health system proposed by the National Development and Reform Commission. Citizen engagement with the political and substantive issues under consideration is crucial if online consultation is to impact government decision-making and enhance the performance of laws and regulations. This paper's main findings are that it was common for comments to address substantive issues in great depth, as well as express negative assessments of government decisions. This suggests that online consultation holds promise as an instrument of governance reform, which the Chinese Communist Party has embraced as a means of cultivating popular support.
Topic:
Development, Government, Law, and Reform
Political Geography:
China

14. External Powers' Influence upon the Reform and Political Elites in Present Kyrgyzstan

Author:
Irina Morozova
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Caucasian Review of International Affairs
Institution:
The Caucasian Review of International Affairs
Abstract:
Formerly perceived as an 'island of democracy', Kyrgyzstan is now characterised as a 'failed state'. After the March 2005 revolutionary upheaval, President K. Bakiev has been searching for a way to consolidate the ruling elite. What was the impact of external powers and international policies upon the last four years' socio-political transformation in the country? How were the images of Kyrgyzstan constructed and manipulated from within and outside? Based upon field interviews, open sources and statistics, this research focuses on the influences of Russia, China, the USA and EU, as well as Kazakhstan, Uzbekistan and Tajikistan on Kyrgyz political elites' development after March 2005. Against the background of multi-dimensional and quite open foreign policy, economic integration and social networks in Kyrgyzstan developed in closer co-operation with Russia and Kazakhstan.
Topic:
Foreign Policy, Diplomacy, International Cooperation, and Reform
Political Geography:
Russia, United States, China, Kyrgyzstan, Tajikistan, and Uzbekistan

15. Deng Undone: The Costs of Halting Market Reform in China

Author:
Derek Scissors
Publication Date:
05-2009
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
Driven by a near obsession with economic growth, Beijing has extended the state's reach into the economy. Instead of urging the Chinese government to resume extensive market reforms, Washington should encourage it to focus on a narrow range of feasible measures.
Topic:
Economics, Government, and Reform
Political Geography:
United States, China, and Beijing

16. State Capitalism Comes of Age: The End of the Free Market?

Author:
Ian Bremmer
Publication Date:
05-2009
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
Across the world, the free market is being overtaken by state capitalism, a system in which the state is the leading economic actor. How should the United States respond?
Topic:
Economics, Government, and Reform
Political Geography:
United States, China, and Europe

17. China-Southeast Asia Relations

Author:
Robert Sutter
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Center for Strategic and International Studies
Abstract:
Asian commentators who asserted that China and its neighbors could ride out the economic crisis in U.S. and Western financial markets appeared in retreat during the quarter as the impact of the financial turmoil and recession in America and Europe began to have a major effect on China and the region's trade, manufacturing, currency values, and broader economic stability. The hope that China could sustain stable growth independent of the U.S. and Europe and thereby provide an engine of growth for export-oriented Southeast Asian countries was dented by Chinese trade figures that nosedived in November, especially Chinese imports, which fell by 18 percent. The financial crisis also dominated the discussion at the ASEM summit in October. Meanwhile, China continued to pursue infrastructure development projects with its neighbors to the south, resolved the land boundary dispute with Vietnam, and signed a free trade agreement with Singapore. Talk of a planned Chinese aircraft carrier caused some controversy, but on the whole assessments of China's rise were notably more balanced than in the past.
Topic:
Economics, Financial Crisis, and Reform
Political Geography:
United States, China, America, Europe, Asia, and Southeast Asia