326-232/332 Chinese Business and Economy

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Objectives:

To introduce students to the dynamics of the contemporary Chinese economy and business environment and its roots. On completion of the subject, students should be able to:

• list and describe the impact of the major institutions which affect the operation of the Chinese economy;

• define the historical continuities between the present and the pre-1949 economies;

• describe and analyse the present business environment and its impact on foreign investment and joint venture enterprises.

Content:

The subject surveys the contours of the post-1978 economy, the nature of the new household economy, the re-emergence of markets and private enterprise, and the state-dominated urban industrial sector. The roots of the present business and economic system are explored. Two key questions are asked: What was the nature of the economic system before 1949 which allowed growth sufficient to feed a growing population without an industrial revolution? Why was China so slow to adopt modern technology? Analysis will focus on the nature of the peasant household economy and handicraft manufacturing, the development of market and transport systems which allowed a high level of pre-modern commercialisation, and the resistance to technological innovation. Controversial debates on industrial and agricultural growth in Republican China, the character of the war economy, and the swings in economic policy of the 1950s-70s will be analysed. Detailed analysis is made of the post-1978 reforms and their implication for domestic growth, foreign investment and international trade.

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