INFLUENCE OF WESTERN ECONOMIC THOUGHT ON CHINESE ECONOMIC POLICY: LATTER HALF OF THE 20TH – EARLY 21ST CENTURY
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Abstract
The article undertakes an examination of the trajectory of China’s economic transformation and its distinctive approach characterized as socialism with Chinese characteristics, with a specific emphasis on the influence exerted by Western economic thought. The study delves into China’s economic policy evolution from the latter 20th century to the early 21st century. The key theories and concepts of the Western economic school are identified, some of which have been integrated into contemporary Chinese economic thought and state policies, ranging from the concept of “socialism with Chinese characteristics” to Xi Jinping’s “socialist economic thought”. The author delves into the impact of Marxist economic theory on industrialization and the establishment of socialism between 1953 and 1976. The article also examines specific tenets of modernization theory, neoclassical economic theory, as well as the economic doctrines of the Austrian and Chicago schools, institutionalism, and theories concerning foreign direct investment. These elements, which influenced market-oriented reforms and the development of socialism with Chinese characteristics from 1978 to 2012, are outlined. Moreover, the article highlights the Western economic ideas that contributed to the cultivation of an innovative economy and the construction of “socialism with Chinese characteristics in the new era” since 2012. Additionally, the article provides an overview of contemporary Chinese economic theory, recognized by the President of the People’s Republic of China as “socialism with Chinese characteristics in the new era” and identified by Chinese scholars as Xi Jinping’s “socialist economic thought”. The primary objective of this article is to analyze the progression of Chinese economic science and politics from the latter half of the 20th century to the early 21st century. The analytical pursuit is facilitated through the utilization of historical and general scientific research methodologies, encompassing synthesis and analysis, generalization, and the application of a systematic approach.
How to Cite
Drobotiuk, O. (2023). INFLUENCE OF WESTERN ECONOMIC THOUGHT ON CHINESE ECONOMIC POLICY: LATTER HALF OF THE 20TH – EARLY 21ST CENTURY. Chinese Studies, (2), 80-97. https://doi.org/10.51198/chinesest2023.02.080
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Keywords
Political economy, Western economics, China, Socialism with Chinese characteristics, New Era for China
References
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Wu J. (2009), China’s Long March Toward a Market Economy, Shanghai Book Traders, Shanghai.
Wu J. (2023), China’s Economic Reform Process, 2nd ed., Encyclopedia of China Publishing House.
Xi J. (2016), “Xi Jinping zhuchi zhaokai jingji xingshi zhuanjia zuotan hui”, Renmin ribao, available at: http://cpc.people.com.cn/n1/2016/0709/c64094-28539271.html (In Chinese).
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Yu G. (1992), Shehui zhuyi shichang jingji zhutilun: Zhaji, Zhongguo caizheng jingji chubanshe. (In Chinese).
Yu G. (2018), Chinese Economists on Economic Reform – Collected Works of Yu Guangyuan, in C.D. Foundation (Ed.), Routledge.
Zhang K.H. (2001), “How does foreign direct investment affect economic growth in China?”, The Economics of Transition, Vol. 9 № 3, pp. 679–693, doi: 10.1111/1468-0351.00095.
Zhang W. (2006), Jiage, shichang yu qiye jia, Beijing daxue chuban she. (In Chinese).
Zhang Y.G. (2021), “Original Contribution of Xi Jinping’s Economic Thought on Socialism with Chinese Attributes for a New Era”, The Northern Forum, № 1, pp. 64–71.
Zhang W. (2014), The Power of Concept: What Determines Chinas Future?, Northwest University Press.
Zhang W. (2015), The Logic of the Market: An Insider’s View of Chinese Economic Reform, translated by Dale, M., Cato Institute.
Zhang W., Cooper W., Deng H., Parker B.R., Ruefli T.W. (2010), “Entrepreneurial talent and economic development in China”, Socio-Economic Planning Sciences, Vol. 44. № 4, pp. 178–192, doi: 10.1016/j.seps.2010.04.003.
Bloomberg (2017), “Xi’s New Silk Road Forum Sets Chinese Tone for Globalization 2.0”, available at: https://www.bloomberg.com/news/articles/2017-05-09/xi-s-new-silk-road-forum-sets-chinese-tonefor-globalization-2-0.
Cao F. (2009), “Modernization Theory and China’s Road to Modernization”, Chinese Studies in History, Vol. 43. № 1, pp. 7–16, doi: 10.2753/csh0009-4633430101.
Chang L., Li J., Cheong K.-C., Goh L.-T. (2021), “Can Existing Theories Explain China’s Outward Foreign Direct Investment in Belt and Road Countries”, Sustainability, Vol. 13. № 3, p. 1389, doi: 10.3390/su13031389.
Chen W., Zhang H., Tang Z., Yu Z. (2023), “Assessing the structural connectivity of international trade networks along the “Belt and Road””, PLoS ONE, Vol. 18. № 3, doi: 10.1371/journal.pone.0282596.
Cohn S. (2017), “Evolution of Chinese economics education 1978–2000”, in Cohn, S. (Ed.), Competing Economic Paradigms in China: The Co-Evolution of Economic Events, Economic Theory and Economics Education, 1976–2016, Routledge, London.
CPC (1992), “October 12–18, 1992: 14th National Congress of CPC convened”,available at: https://www.chinadaily.com.cn/china/19thcpcnationalcongress/2011-10/12/content_29715214.htm.
Cui Z. (2012), “Making Sense of the Chinese “Socialist Market Economy”: A Note”, Modern China, Vol. 38. No. 6, 665–676, doi: 10.1177/0097700412459700.
Deng X. (1985), “An interview with Deng Xiaoping: You should give themthe power to make money”, interviewed by Time, available at: https://content.time.com/time/subscriber/article/0,33009,1050524-1,00.html.
Drobotiuk O. (2019), “Evolution of China’s Economic Development Model”, Chinese Studies, No. 1, pp. 76–93, doi: 10.15407/chinesest2019.01.076.
Fan G. (1996), Jianjin gaige de zhengzhi jingji xue fenxi, Shanghai yuandong chu ban she. (In Chinese).
Fan G., Hope N.C. (2013), “The role of state-owned enterprises in the Chinese economy”, China-US 2022, available at: https://www.chinausfocus.com/2022/wp-content/uploads/Part+02-Chapter+16.pdf.
Fang F. (2019), “A reflection on borrowing from western economics”, China Political Economy, Vol. 2. No. 2, pp. 238–257, doi: 10.1108/CPE-10-2019-0023.
Guowuyuan (2015), “Zhongguo zhizao 2025”, available at: https://www.gov.cn/zhengce/content/2015-05/19/content_9784.htm (In Chinese).
Hong Y. (2020), “Socialist political economy with Chinese characteristics in a new era”, China Political Economy, № 3, pp. 259–277. doi: 10.1108/CPE-10-2020-0017.
Li W. (2018), “Maoist Economics”, The New Palgrave Dictionary of Economics, Palgrave Macmillan, London, pp. 8188–8197, doi: 10.1057/978-1-349-95189-5_2389.
Li Y. (2010), Economic Reform and Development the Chinese Way, Foreign Language Teaching and Research Press.
Li Y. (2012), Economic Reform and Development in China, Cambridge University Press, Cambridge, doi: 10.1017/CBO9781139162203.
Lin J.Y., Wang X. (2022), “Dual Circulation: a New Structural Economics view of development”, Journal of Chinese Economic and Business Studies, Vol. 20. № 4, pp. 303–322, doi: 10.1080/14765284.2021.1929793.
Lin J.Y. (2009), Economic Development and Transition: Thought, Strategy, and Viability, Peking University, Beijing.
Lin J.Y. (2012), New Structural Economics: A Framework for Rethinking Development, The World Bank, Washington, D.C., available at https://www.nse.pku.edu.cn/attachments/b655e800b4bf4b44916436958f2abbb2.pdf.
Lin J.Y. (2013), Against the Consensus: Reflections on the Great Recession, and Demystifying the Chinese Economy, Cambridge University Press, Cambridge.
Liu W. (2018), “Combining Marxism and China’s practices for the development of a socialist political economy with Chinese characteristics”, China Political Economy, № 1, pp. 30–44. doi: 10.1108/CPE-09-2018-001.
Mao Y. (1998), “Liberal Voices from China: Liberalism, Equal Status, and Human Rights”, Journal of Democracy, Vol. 9. № 4, pp. 20–23.
Mao Y. (2000), “Fifty years of China’s economy with its background in politics and society”, in Carpenter, T., Dorn J. (Ed.), China’s future: constructive partner or emerging threat? Cato Institute, Washington D.C., pp. 9–27.
Mao Y. (2011), “The Paradox of Morality”, in Palmer T. (Ed.), The Morality of Capitalism: What Your Professors Won’t Tell You, Jameson Books, Ottawa, Illinois, pp. 43–54.
Mao Z. (1977), “Mao Tse-tung’s speech ‘On the Ten Major Relationships’”, China Report, Vol. 13. № 1, 58–74, doi: 10.1177/000944557701300109.
Ministry of Foreign Affairs of PRC. (2013). “President Xi Jinping Delivers Important Speech and Proposes to Build a Silk Road Economic Belt with Central Asian Countries”, available at Belt and Road Portal: https://eng.yidaiyilu.gov.cn/qwyw/hyygd/1849.htm.
Murray C. (2022), “An analysis of China’s Belt and Road initiative and its neocolonial ambitions”, Routes, Vol. 2. № 3, pp. 176–182.
Saich T. (1992), “The Fourteenth Party Congress: A Programme for Authoritarian Rule”, The China Quarterly, Vol. 132, pp. 1136–1160. doi: 10.1017/s0305741000045574.
Sutter K.M. (2023), ““Made in China 2025” Industrial Policies: Issues for Congress”, available at: https://sgp.fas.org/crs/row/IF10964.pdf.
Tian G., Li Y. (2022), “On Xi Jinping’s Socialist Economic Thoughts”, Theoretical Economics Letters, №12, pp. 240–257, doi: 10.4236/tel.2022.121014.
Tseng W.S. (2003), “Foreign Direct Investment in China: Some Lessons for Other Countries”, in Tseng W.S., Rodlauer M. (Ed.), China: Competing in the Global Economy, International Monetary Fund, pp. 68–88, doi: 10.5089/9781589061781.071.
Wei J. (2020), China’s Industrial Policy: Evolution and Experience, UNCTAD, available at: https://unctad.org/system/files/official-document/BRI-Project_RP11_en.pdf.
Woo W.T. (1999), The Economics and Politics of Transition to an Open Market Economy: China, OECD, available at: https://www.oecd.org/dev/1921928.pdf.
Wu J. (2005), Understanding and Interpreting Chinese Economic Reform, Texere.
Wu J. (2009), China’s Long March Toward a Market Economy, Shanghai Book Traders, Shanghai.
Wu J. (2023), China’s Economic Reform Process, 2nd ed., Encyclopedia of China Publishing House.
Xi J. (2016), “Xi Jinping zhuchi zhaokai jingji xingshi zhuanjia zuotan hui”, Renmin ribao, available at: http://cpc.people.com.cn/n1/2016/0709/c64094-28539271.html (In Chinese).
Xi J. (2015), “The Chinese Dream Is a Dream of the People”, available at: https://www.fmprc.gov.cn/mfa_eng/topics_665678/zggcddwjw100ggs/xsd/202208/t20220826_10754300.html.
Xi J. (2017), “Secure a Decisive Victory in Building a Moderately Prosperous Society in All Respects and Strive for the Great Success of Socialism with Chinese Characteristics for a New Era”, available at: www.xinhuanet.com/english/download/Xi_Jinping’s_report_at_19t_CPC_National_Congress.pdf.
Xinhua (2022), “China unveils plan to boost digital economy in 2021-2025 period”, available at: https://english.news.cn/20220112/4a0801b5429144a7b390e868ee6c23fb/c.html.
Xinhua (2023), “China unveils plan to promote digital development”, available at: https://english.www.gov.cn/policies/latestreleases/202302/28/content_WS63fd33a8c6d0a757729e752c.html.
Xinhua (2005), “Hujintao guanyu goujian shehui zhuyi hexie shehui jianghua quanwen”, available at: https://www.gov.cn/ldhd/2005-06/27/content_9700.htm (In Chinese).
Yagi K. (2018), “Economics in Сhina”, The New Palgrave Dictionary
of Economics, Palgrave Macmillan, London, doi: 10.1057/978-1-349-95189-5_2135.
Yu G. (1982), Zhengzhi jingji xue: Ziben zhuyi bufen, Tianjin renmin chuban she. (In Chinese).
Yu G. (1992), Shehui zhuyi shichang jingji zhutilun: Zhaji, Zhongguo caizheng jingji chubanshe. (In Chinese).
Yu G. (2018), Chinese Economists on Economic Reform – Collected Works of Yu Guangyuan, in C.D. Foundation (Ed.), Routledge.
Zhang K.H. (2001), “How does foreign direct investment affect economic growth in China?”, The Economics of Transition, Vol. 9 № 3, pp. 679–693, doi: 10.1111/1468-0351.00095.
Zhang W. (2006), Jiage, shichang yu qiye jia, Beijing daxue chuban she. (In Chinese).
Zhang Y.G. (2021), “Original Contribution of Xi Jinping’s Economic Thought on Socialism with Chinese Attributes for a New Era”, The Northern Forum, № 1, pp. 64–71.
Zhang W. (2014), The Power of Concept: What Determines Chinas Future?, Northwest University Press.
Zhang W. (2015), The Logic of the Market: An Insider’s View of Chinese Economic Reform, translated by Dale, M., Cato Institute.
Zhang W., Cooper W., Deng H., Parker B.R., Ruefli T.W. (2010), “Entrepreneurial talent and economic development in China”, Socio-Economic Planning Sciences, Vol. 44. № 4, pp. 178–192, doi: 10.1016/j.seps.2010.04.003.