China's Engagement with Neo-liberalism: Path Dependency, Geography and Party Self-Reinvention

Abstract

China's post-Mao market reform, even after the Asian crisis, does not conform to the standard IMF/World Bank model and the state continues to mediate market reform. Three principal factors have influenced how the state mediates China's market reform: path dependency, a result of China's communist and nationalist revolution; China's geography, which favours developmental-state-type industrialisation; and most important of all, the Chinese Communist Party's successful post-Mao self-reinvention that has enabled it to remain in power as a monopolistic party. These factors determine that China's engagement with neo-liberalism will be a loose hug rather than an intimate embrace.

The developmental state in the era of globalization: beyond the Northeast Asian model of political economy

“…However, various studies point out the existence of serious obstacles to the effective implementation of the developmental policy in China, particularly a high degree of economic decentralization (and the considerable power of local government), and the lack of coordination in policymaking (and the detrimental existence of rivalries) between central government and local government and also between various local governments (Howell 2006;Breslin 1996). What local government does is to promote local economic interests by creating local employment and maximizing tax revenues, often conflicting with national interests such as the promotion of globally competitive firms and industries (Liew 2005). Deans (2004: 136), while arguing that the Chinese state ought to be regarded as a case of a postsocialist developmental state, still admits that the Chinese policy-making processes show a lack of coherent planning, being 'dominated by the need to make compromises between competing political, economic, and bureaucratic interests'.…”

“…Also, we should not overlook central government's ability to control state-owned enterprises (still a large share of the Chinese economy). The Chinese state is re-organizing this particular sector by supporting large firms and letting small firms go bankrupt (Liew 2005;Baek 2005). Liew (2005: 336) argues that this way of choosing winners is actually akin to the South Korean-style of industrialization.…”

China and the WTO into the Next Decade: Probing the Past and Present as a Path to Understand the Future

“…In addition, it delves into the opportunities created for businesses and the obstacles faced by companies seeking to exploit the policy changes China would be making (Mok, 2002;Agarwal and Wu, 2004;Chang et al, 2005). Furthermore, it speculates on the likelihood that China will fulfil its commitments (Chan, 2004;Liew, 2005;Mertha and Zeng, 2005). A smaller number of works within this group examine the implications of China's WTO membership on developing and developing countries, select industrial sectors within and without China, and so on " A nascent group researches "China as target," but the number of works in this group is too small at present to warrant discussion.…”

Network Governance of Private Sector Development Policy Implementation in Singapore

“…A further reason is that globalization is accelerating the growth of business interdependencies across national boundaries with concomitant growth in the attendant need for rapid response to transmitted technologies from abroad (Liew, 2005). As some Singapore observers (Yuan, 1999;En, 1998) maintain, these are trends to which the SMEs are better disposed to respond and adapt given the flexibility and nimbleness of their operations.…”