China Today: Economic Reforms, Social Cohesion and by Taciana Fisac, Leila FernA?ndez-Stembridge PDF

By Taciana Fisac, Leila FernA?ndez-Stembridge

Because the Eighties, China has longed for an immense position at the foreign monetary scene and has as a result attempted to advertise a picture of modernization. Having elevated its efforts in the direction of overseas integration, family reform maintains to give China with one in every of its maximum demanding situations. This quantity analyses numerous vital elements of ultra-modern China: monetary alterations, the quest for a social compact in city China, the id of latest social conflicts that coexist within the dialectics of keep watch over and harmony and the matter of kingdom development and collective identities.

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S. ’ 2 For summary, analysis and text, see Lauffs (1995). 3 Ru (1998: 48). 4 O’Neill (1998a, 1998b). 5 Chan (1998). 6 For example, of central government investment in manufacturing in 1996, more than two-thirds was in three sectors: petroleum refining, chemicals, and steel. State Statistical Bureau (1998: 63–67). Local government manufacturing investment was about 70 per cent larger in total, and much more dispersed across industrial sectors. 7 Wo (1998). 8 Wu (1996: 28–30); Shanghai Statistical Office (2000: 47, 56).

Foreign firms can operate in fifteen ‘bounded free trade zones’ in the coastal areas. Experimental projects of joint-venture trading companies have only just started. Other sectors (tourism, legal service, accounting, advertisement). They have been more open to foreign investors and companies. Potential negative impacts of further market liberalization Generally speaking, the current ‘negative developments’ such as unemployment, income disparities, regional differences or corruption have been mainly related to domestic reforms and development, despite the impact of the market’s gradual liberalization (increase of imports and FDI) at the domestic level.

First, in most industries, free imports may quickly take over many domestic markets and cut the existing jobs; second, foreign investment may eliminate existing jobs if domestic firms are economically inefficient. As predicted from the logic of political economy, we may expect more protections to emerge in the following three areas: 1 2 Established (traditional) industries where there are jobs and interest groups. New industries (electronics and computers), which did not exist before in China, have met less resistance to the opening process.

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