China’s Miracle :  From the Perspective of Political Economy

Xie, Fusheng; Kuang, Xiaolu; Wang, Jiateng

doi:10.13169/worlrevipoliecon.12.2.0150

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World Review of Political Economy

Volume 12, Issue 2

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China’s Miracle : From the Perspective of Political Economy

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Author(s): Fusheng Xie , Xiaolu Kuang , Jiateng Wang ^* ^,

Publication date (Electronic preprint): 01 July 2021

Journal: World Review of Political Economy

Publisher: Pluto Journals

Keywords: transformation, reform and opening-up, China, political economy

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Abstract

We construct a framework for the interaction between economic system reform and the technological-economic system in order to analyze the dynamic process of China’s economic transformation and development. China has passed through three major phases of economic system reform, which have involved reforming the commodity economy through planning, establishing the socialist market economic system, and improving the socialist market economic system. Correspondingly, China has gone through three technological-economic systems, which may be summed up as: “quantitative subsistence consumption and extensive production without technological progress,” “qualitative subsistence consumption and extensive production with technological progress,” and “standardized mass consumption and mass production.” Since 2012, China’s economy has entered the era of a “new normal,” characterized by lower growth rates. This indicates a fundamental shift in the patterns of social demand away from the current technological-economic system that is growing incapable of sustaining rapid capital accumulation and thus needs transforming. To better explain China’s miracle, we focus on the ways in which the contradictions within each technological-economic system have evolved and have been resolved through targeted reforms to the economic system. Eventually, these reforms will lead to a new system that facilitates further capital accumulation.

Content

Author and article information

Journal

Journal ID (doi): 10.13169/worlrevipoliecon

Title: World Review of Political Economy

Abbreviated Title: WRPE

Publisher: Pluto Journals

ISSN (Electronic): 2042-8928

Publication date (Electronic preprint): 01 July 2021

Volume: 12

Issue: 2

Pages: 150-180

Author notes

[* ] Correspondence: Jiateng Wang ( wjiateng@ 123456umass.edu )

Article

DOI: 10.13169/worlrevipoliecon.12.2.0150

SO-VID: 0ec07171-1b1f-4299-ad59-a70a1d5158dd

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History

Page count

Pages: 31

References

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Comments

Comment on this article

[1] M. Aglietta, and G. Bai. 2013. China’s Development: Capitalism and Empire. London: Routledge.

[2] H. Chang 2011. “Hamlet without the Prince of Denmark: How Development Has Disappeared from Today’s ‘Development’ Discourse.” In Towards New Developmentalism: Market as Means Rather Than Master, edited by S. Khan and J. Christiansen, 47. New York: Routledge.

[3] Z. Dong 2009. “The Path and Achievements of Industrialization in New China.” [In Chinese.] CPC History Studies, no. 2: 3–14.

[4] ETCPRC (Economic and Trade Commission of the People’s Republic of China). 2000. Fifty Years of Chinese Industry—A Guide to China’s Industry, vol. 8. [In Chinese.] Beijing: China Economic Press.

[5] J. Felipe, and J. McCombie. 2013. The Aggregate Production Function and the Measurement of Technical Change: Not Even Wrong. Cheltenham: Edward Elgar.

[6] J. Fewsmith 2001. “The Political and Social Implications of China’s Accession to the WTO.” The China Quarterly 167: 573–591.

[7] S. Goldstein 1995. “China in Transition: The Political Foundations of Incremental Reform.” The China Quarterly 144: 1111–1116.

[8] H. Gui 2019. “Modes of Land Development and Process of Population on Urbanization—A Comment on Land Expropriation System Reform.” [In Chinese.] Journal of Huazhong Agricultural University (Social Sciences Edition), no. 1: 155–161.

[9] Q. Huang 2018. “China’s Industrial Development and Industrialization Process during the 40 Years of Reform and Opening-Up.” [In Chinese.] China Industrial Economics, no. 9: 5–23.

[10] IIECASS (Institute of Industrial Economics of CASS). 2008. “China Industrial Development Report (2008)—30 Years of China’s Industrial Reform and Opening-Up.” [In Chinese.] Beijing: Economic Management Press.

[11] R. Kang 1994. “The New Pattern of China’s Technology Imports in the 1990s.” [In Chinese.] Management World, no. 1: 169–171.

[12] N. Lardy 1995. “The Role of Foreign Trade and Investment in China’s Economic Transformation.” The China Quarterly 144: 1065–1082.

[13] Q. Li, Y. Chen, and J. Liu. 2012. “On the ‘Development Mode’ of Chinese Urbanization.” [In Chinese.] Social Sciences in China, no. 7: 82–100.

[14] X. Li, X. Liu, and Y. Wang. 2014. “The Mode of China’s Economic Development.” [In Chinese.] China Journal of Economics, no. 4: 1–48.

[15] Y. Li 2008. “Thought Releasing, Theory Innovation and Economy Reform: In Memory of 30 Years of the Reform and Opening-Up in China.” [In Chinese.] Journal of Peking University (Philosophy and Social Sciences), no. 5: 5–9.

[16] Y. Lin, F. Cai, and Z. Li. 1993. “Studies on the Gradual Way of China’s Economic Reform.” [In Chinese.] Economic Research Journal, no. 9: 3–11.

[17] Y. Lin, F. Cai, and Z. Li. 1999. “Comparative Advantage and Development Strategy.” [In Chinese.] Social Sciences in China, no. 5: 3–20.

[18] M. Liu, and B. Sun. 2009. “Commercial Land Price Formation Mechanism, Real Estate Bubbles and Their Governance.” [In Chinese.] Journal of Financial Research, no. 10: 22–37.

[19] S. Liu, X. Wang, D. Yuan, and J. Zhang. 2010. “The Risks and Countermeasures Faced by China’s Industrial Structure Upgrade.” [In Chinese.] Review of Economic Research, no. 13: 2–43.

[20] S. Liu 2020. “Establish a Higher-Level Market Mechanism to Achieve Full Opening of the Elements.” [In Chinese.] Securities Times, June 5.

[21] Z. Liu, and J. Wang. 2000. “Excess Production Capacity of Manufacturing Industry and the Industrial Elevation Strategy.” [In Chinese.] Economist, no. 1: 64–69.

[22] D. Lu 2001. China’s Transformation Growth—A Structural-Institutional Analysis. [In Chinese.] Beijing: Economic Science Press.

[23] T. Lu 2000. “Studies on the Phase Change of China’s Industrial Development.” [In Chinese.] Study and Exploration, no. 1: 4–11.

[24] T. Lu 2008. “Thirty-Year History and Experience of Adjustment and Upgrading of China’s Industrial Structure.” [In Chinese.] Social Science Front, no. 5: 7–14.

[25] W. Lu 2004. “Institutional Constraints, Economic Imbalances and Fiscal Policy: An Analysis of China’s Transition since 1998.” [In Chinese.] Social Sciences in China, no. 2: 4–17.

[26] D. C. North, and R. P. Thomas. 1973. The Rise of the Western World: A New Economic History. Cambridge: Cambridge University Press.

[27] PLROCPCCC (Party Literature Research Office of the CPC Central Committee). 2008. Selection of Important Documents in the Thirty Years of Reform and Opening-Up. [In Chinese.] Beijing: Central Party Literature Press.

[28] PLROCPCCC (Party Literature Research Office of the CPC Central Committee). 2017. Excerpts of Xi Jinping’s Discussion on Socialist Economic Construction. [In Chinese.] Beijing: Central Party Literature Press.

[29] L. Putterman 1995. “The Role of Ownership and Property Rights in China’s Economic Transition.” The China Quarterly 144: 1047–1064.

[30] H. Qi, and D. Kotz. 2020. “The Impact of State-Owned Enterprises on China’s Economic Growth.” Review of Radical Political Economics 52 (1): 96–114.

[31] Y. Qian, and B. Weingast. 1996. “China’s Transition to Markets: Market-Preserving Federalism, Chinese Style.” Journal of Policy Reform 1 (2): 149–186.

[32] T. Rawski 1995. “Implications of China’s Reform Experience.” The China Quarterly 144: 1150–1173.

[33] A. Shaikh 1974. “Laws of Production and Laws of Algebra: The Humbug Production Function.” Review of Economics and Statistics 56 (1): 115–120.

[34] H. Su, and H. Wei. 2018. “The Course, Inspiration and Expectation of China’s Urbanization over the Past 40 Years of Reform and Opening-Up.” [In Chinese.] Reform, no. 11: 49–59.

[35] R. Tao, X. Lu, F. Su, and H. Wang. 2009. “China’s Transition and Development Model under Evolving Regional Competition Patterns.” [In Chinese.] Economic Research Journal, no. 7: 21–33.

[36] K. Walker 1984. “Chinese Agriculture during the Period of the Readjustment, 1978–1983.” The China Quarterly 100: 783–812.

[37] J. Wu 2018. China’s Economic Reform Process. [In Chinese.] Beijing: China Encyclopedia Press.

[38] F. Xie, L. Gao, and P. Xie. 2019. “Supply-Side Structural Reform from the Perspective of Global Production Networks: Based on Theoretical Logic and Empirical Evidence of Political Economy.” [In Chinese.] Management World, no. 11: 89–101.

[39] S. Yao 2008. “Studies on Marx’s Theory of Human Needs—Also on the Relationship between Marx, Freud and Maslow.” [In Chinese.] Southeast Academic Research, no. 2: 105–113.

[40] J. Zhang 2005. “Competing for Growth: An Interpretation of China’s Mystery.” [In Chinese.] Dongyue Tribune, no. 4: 15–19.

[41] W. Zhang 2007. “Understand and Defend the Market Economy.” [In Chinese.] Study Times, December 17.

[42] W. Zhang 2009. The Economic System of China. [In Chinese.] Beijing: China CITIC Press.

[43] F. Zhou 2006. “A Decade of Tax-Sharing: The System and Its Evolution.” [In Chinese.] Social Sciences in China, no. 6: 100–115.

[44] F. Zhou 2012. Profit for Profit: Fiscal Relations and Local Government Behavior. [In Chinese.] Shanghai: Shanghai Joint Publishing Press.

[45] L. Zhou 2007. “Governing China’s Local Officials: An Analysis of the Promotion Tournament Model.” [In Chinese.] Economic Research Journal, no. 7: 36–50.

[46] Q. Zhou 2017. “System Cost and China’s Economic Growth.” [In Chinese.] China Economic Quarterly, no. 3: 859–876.

[47] S. Zhou 1998. “Retrospect and Prospect of China’s State-Owned Enterprise Reform in the Past 20 Years.” [In Chinese.] Social Sciences in China, no. 6: 44–58.