Economics of Contemporary China: Policies and Practices

Editor-in-Chief: Wang Yujing

Deputy Editor-in-Chief: Liu Shuhan, Zhu Hong

ISBN: 978-1-84464-526-8

Ebook ISBN: 978-1-84464-527-5

Hardback-420 Pages

November 2018


£75 €90 $120


This book is intended principally for foreigners, especially for those foreign students who are studying in Chinese universities or in their home country. The purpose of this book is to help them better understand the historical background, the development process and the overall features of the contemporary Chinese economy. In 1949, the People’s Republic of China (P.R.C.) was founded. Since then it has seen fast economic development which can roughly be divided into two stages: planned economy and market economy. China’s economic development, especially the amazing achievements made after the adoption of the reform and opening-up policy—so-called “the Chinese Miracle”, has attracted worldwide attention. This book objectively presents contemporary China's economic policies and practices in the course of transformation from planned economy to market economy with rigorous data and detailed information. With the rapid development, China has become the second large economy in the world. As the world integrates globally, more and more people are involved in this integration. However, they are lack of knowledge about China’s economic policies. This book can help them better understand the historical background, the development process and the overall features of the contemporary Chinese economy.


Chapter 1 China’s National Economy: a Market Economy Transformed from a Planned Economy 1.1 Highly Centralized Planned Economy 1.1.1 Preliminary Establishment of the Socialist Public Ownership over the Means of Production 1.1.2 Planned Development of the Industrial Economy 1.1.3 Planned System Featuring State Monopoly of Purchase and Marketing and of Income and Expense 1.2 Transition from Planned Economy System to Market Economy System 1.2.1 Reform of the Economy System 1.2.2 Macro Economy and Industry Development under Reform 1.2.3 Opening Up to the Outside World 1.3. A Fully Open and Harmonious Nation with Market Economy in Rapid Development 1.3.1 Establishment of Market Economic System and Transformation of Economic Operation Mode 1.3.2 The National Economy in Sustainable and Rapid Development 1.3.3 An Important Economy Influencing World Pattern Chapter 2 The Development of China’s Industrial Economy 2.1 Agriculture: The Food Problem for 1.4 Billion People 2.1.1 China's Reform Initiated by Food Shortage in Rural Areas 2.1.2 A Modernized Chinese Agriculture 2.1.3 The Problem of the Rural People Is the Problem of China 2.1.4 A Modern New Rural Area 2.2 Manufacturing Industry: Factory of the World 2.2.1 The Establishment and Development of China’s Industrial System 2.2.2 China’s Manufacturing Industry in the Reform and Opening up 2.2.3 From “Made in China” to “Invented in China” 2.3 Service Industry: A Perfect Embodiment of Industrial Modernization and Urbanization 2.3.1 Changes in the Concept of Service 2.3.2 The Development of Service Industry and China’s Urbanization 2.3.3 Service Industry and the Optimization of China’s Industrial Structure Chapter 3 The Strategy and Policy Evolution of China’s Regional Economy 3.1 Balanced Development of Regional Economy in the Period of Planned Economy 3.1.1 The Zero Foundation of Regional Economy 3.1.2 A New Star: Proposal and Implementation of Balanced Development Strategy 3.1.3 Effects: Reversing the Imbalanced Productivity Layout 3.1.4 Defect: Development at the Expense of Efficiency 3.2 Non-Equilibrium Development of Regional Economy in the Period of Reform and Opening-up 3.2.1 Breaking up the Stagnant Planned Economy 3.2.2 Efficiency-Oriented Non-Equilibrium Regional Economic Development Strategy 3.2.3 Non-Equilibrium Regional Economic Development Strategy Focusing on Efficiency and Equality 3.3 Coordinated Development of Regional Economy in the Period of Comprehensive Development 3.3.1 The Overall Implementation of Coordinated Regional Development Strategy 3.3.2 The Strategy of Development Priority Zones and Interaction of Regional Economies Chapter 4 China’s Urbanization Process and Urban Problems 4.1 Urban-rural Gap, Urbanization and China's Economic Development 4.1.1 Urban-rural Gap in China 4.1.2 Shift towards Urbanized Mode: Changes of Rural Areas and Farmers 4.1.3 Urbanization and China’s Economic Development 4.2 Urbanization and China’s Property Market 4.2.1 Cities Merger Villages and Land Supply under Multi-track System 4.2.2 Urban Property Market: Hottest Topic in Today’s China 4.2.3 Urbanization and Property Market: From an Interactive Developing View 4.3 Issues Arising from Urbanization and Population Development in China 4.3.1 Urbanization and the Aging Population 4.3.2 Urbanization and Rural Migrant Workers in China 4.3.3 Issues of Urban Medical and Health Care in China 4.4 “Large City Malaise” in China and Sustainable Development of Cities 4.4.1 Urbanization and City Pollution in China 4.4.2 Urbanization and Urban Traffic Congestion 4.4.3 Urbanization and Green Growth Chapter 5 Evolution of Interest Rate and Exchange Rate and the Chinese Currency Policy 5.1 China in the Beginning of Interest Rate Liberalization 5.1.1 The Interest Rate Policy in China before the Reform and Opening 5.1.2 1978-1985: Interest Rate Policy in the Years of Bringing Order out of Chaos 5.1.3 The “Thrilling Leap” and Ice-breaking Trip of Interest Rate Liberalization 5.1.4 Icebreaking—Interest Rate liberalization Entering Abyssal Area 5.2 Exchange Rate Liberalization of RMB 5.2.1 A Historical Review of the Exchange Rate Policy of RMB 5.2.2 Distortion and Reality—Dispute on RMB Devaluation and Hot Foreign Exchange Reserve 5.2.3 Disputes on Appreciation of RMB 5.3 Money Policy of China and Internationalization of RMB 5.3.1 Historical Review of Chinese Money Policy 5.3.2 Readjustment of International Money Policy: Strategy of RMB Internationalization Chapter 6 The Structure and Reform of Financial System in China 6.1 China’s Financial Industry in the Times of Planning Economy 6.1.1 The Highly Centralized Unification of Financial System 6.1.2 Financial Product in Short Supply 6.1.3 Financial Operation Framework Centered by Credit Planning 6.2 Establishment of the Framework of Modern Financial System 6.2.1 Establishment of the System of Deposit Monetary Banks 6.2.2 Establishment and Development of Trust Companies 6.2.3 Initial Establishment of Financial Market 6.3 The Deepening Development of Financial Institutions and Financial Market in China 6.3.1 Reform and Development of Chinese Banking 6.3.2 Chinese Insurance Industry Rapidly Sprang up 6.3.3 The Rough Road for the Capital Market in China Chapter 7 China’s Foreign Trade: History and Development 7.1 China’s Foreign Trade Development Course 7.1.1 Planning Economy Period: 1949-1978 291 7.1.2 Exploration and Practice Period: 1978-1991 7.1.3 Transformation and Development Period: 1992-2001 7.1.4 All Dimensional and Multi-level Opening to the Outside World: 2002-2012 7.1.5 China’s New Opening Era: from 2012 to the Present 7.2 International Status of China’s Foreign Trade 7.2.1 International Status of China’s Goods Trade 7.2.2 International Status of China’s Service Trade 7.3 China’s System of Foreign Trade 7.3.1 System of Foreign Trade before the Reform and Opening-up 7.3.2 Foreign Trade System after the Reform and Opening-up 7.4 Foreign Trade and the Growth 7.4.1 A General Survey of China’s Foreign Trade and Economic Growth 7.4.2 Interrelationship Between China’s Foreign Trade and Economic Growth 7.4.3 China’s Dependence on Foreign Trade Chapter 8 International Direct Investment - the Practice in China 8.1. The Practice of Chinese Utilization of FDI 8.1.1 The Process of Chinese Utilization of FDI 8.1.2 The Characteristics of China's Utilization of Foreign Direct Investment 8.2 China’s Policy on the Utilization of Foreign Direct Investment 8.2.1 The Evolution of China’s Policy on the Utilization of the Foreign Investment 8.2.2 The Prospect of China’s FDI Policy 8.3. The Practice of Chinese Outward Direct Investment 8.3.1 The Development of Chinese ODI 8.3.2 The Characteristics of Chinese ODI 8.3.3 The Possibility and Condition for Chinese ODI 8.4 Chinese ODI Management 8.4.1 Macro-management of Chinese ODI 8.4.2 Industry Guidance for Chinese ODI Chapter 9 WTO and China 9.1 Review of the History of China’s Accession to the WTO 9.1.1 The Historic Origin of World Trade Organization 9.1.2 The Motivations and Benefit-Cost Analysis of China’s Accession to WTO 9.1.3 China’s relations with the WTO and the GATT: From “Rejoining the GATT” to “the Entry into the WTO” 9.1.4 China’s Commitments to the WTO: Fulfillment and Controversy 9.2 The Influence on China after its Entry into WTO 9.2.1 The Economic Influence 9.2.2 The Influence of Market-oriented Reform 9.3 The Chinese Role in the WTO: Conversion and Prospects 9.3.1 China’s Demand for Interests in the WTO 9.3.2 The Key Issues China Faced 9.3.3 China’s Role in the WTO: Important Participant and Active Builder Acknowledgments

About Author:

Liu Shuhan, Wang Yujing, Tianjin University of Commerce. The authors of this book have a rich experience of teaching Economics and China’s economic policies in university, and giving lectures to foreign students about China’s contemporary economy. Based on these experiences, they wrote this book for foreign students.

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