Reform and the Non-State Economy in China The

Private and foreign economic sectors (termed non-state sectors in China) have been the main engine of China's phenomenal economic growth. Built on rich data analyses, this book offers a fresh and in-depth explanation of how China's pro-reform leaders successfully launched controversial policies to promote these dynamic sectors, managed leadership conflict, and ensured reform in the provinces and rapid growth in the nation.

Hongyi H. Lai is a research fellow at the East Asian Institute, National University of Singapore.

List of Tables

xi

List of Tabulations

xiii

List of Figures

xiv

List of Acronyms and Abbreviations

xvi

Preface

xviii

Economic Transition and the Case of China

1

(30)

Big Bang and Incremental Approaches to Transition

2

(3)

Big Bang and Incremental Views of China's Success

5

(4)

Political Studies on Reforms

9

(3)

Alternative Explanation of China's Reforms: Strategies for Overcoming Constraints

12

(15)

A Synopsis of the Chapters

27

(4)

Non-State Sectors Policies, 1978 to Present

31

(30)

Policies toward Rural Enterprises

33

(6)

Policies toward Private Businesses

39

(6)

Policies toward Foreign and Joint Ventures

45

(16)

Managing Elite Conflict and Policy Cycles

61

(30)

Top Leadership and Factionalism

62

(5)

Reformist Strategy of Overcoming Opposition

67

(2)

China's Political Business Cycles

69

(5)

Views on Sources of Cycles in Post-Mao China

74

(2)

From Elite Division to Policy Cycles

76

(1)

Factional Conflict and Dynamics of Cycles

77

(9)

Features of Cycles

86

(1)

Conclusion: Cycles and Reformist Approach to Elite Conflict

87

(4)

Installing Technocratic Young Leaders

91

(18)

The Formation and Power of the Politburo

94

(1)

Changes in the Politburo and Implications

95

(12)

Conclusion

107

(2)

Selective and Showcase Liberalization

109

(32)

The Early Years of the Open Policy

111

(1)

Existing Explanations of the Open Policy

112

(4)

Environment, Initiatives, Patronage, and Strategy

116

(12)

Politics of Selecting the First Open Areas

128

(3)

Consolidating the Open Policy

131

(7)

Conclusion

138

(3)

Extending the Open Policy

141

(26)

Existing Explanations

143

(7)

Other Explanations

150

(13)

Conclusion

163

(4)

Provincial Reform Initiatives

167

(24)

Significance of Provinces and Provincial Differences in Policies

167

(5)

Possible Explanations

172

(15)

Effects of National Policies on the Provincial Policies

187

(1)

Conclusion

188

(3)

Divergent Reform Paths in Two Provinces

191

(40)

Methodology for Comparative Studies

191

(1)

Provinces for Comparison

192

(6)

Evolution of Policies toward Non-State Sectors in Shandong and Jilin

198

(7)

Causes of Divergence in Reform Policies

205

(19)

Conclusion

224

(7)

How China's Leaders Made Reforms Happen

231

(22)

China's Reform Strategies

232

(11)

Flaws in China's Reform Strategies

243

(3)

Major Problems in the Wake of High Growth and Remedies

246

(7)

Notes

253

(10)

Data Sources

263

(3)

Bibliography

266

(15)

Index

281

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Reform and the Non-State Economy in China The Political Economy of Liberalization Strategies

Summary

Author Biography

Table of Contents

Supplemental Materials