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Showing papers in "Journal of Contemporary China in 2009"


Journal ArticleDOI
TL;DR: In many communities, township authorities, Party branches, and social forces (such as clans, religious groups, and underworld elements) continue to impede democratic rule as mentioned in this paper, which suggests that a purely procedural definition of democracy is problematic and that democratization depends on the power configuration in which elected bodies are embedded.
Abstract: Election procedures in rural China have improved greatly over the last 20 years and a good number of reasonably free and fair elections have been held. But changes in the ‘exercise of power’ have not kept up with changes in the ‘access to power’. In many communities, township authorities, Party branches, and social forces (such as clans, religious groups, and underworld elements) continue to impede democratic rule. This suggests that a purely procedural definition of democracy is problematic and that democratization depends on the power configuration in which elected bodies are embedded. Putting grassroots democracy into place goes well beyond getting the procedures right, and ‘high quality’ democracy rests on much more than convening good village elections every three years.

116 citations


Journal ArticleDOI
TL;DR: The concept of consultative Leninism has been proposed in this article to describe the political system that has taken shape in China after the death of Deng Xiaoping, which has five defining characteristics: an obsessive focus upon staying in power, continuous governance reform designed to pre-empt public demands for democratization, sustained efforts to enhance the Party's capacity to elicit, respond to and direct changing public opinion; pragmatism in economic and financial management; and the promotion of nationalism in place of Communism.
Abstract: This paper puts forward the concept of consultative Leninism to describe the political system that has taken shape in China after the death of Deng Xiaoping. It argues that the Communist Party has made its essentially Leninist political machinery more resilient in confronting the huge social and political challenges that the current global financial crisis may unleash in China by incorporating consultative elements. Consultative Leninism has five defining characteristics: an obsessive focus upon staying in power; continuous governance reform designed to pre-empt public demands for democratization; sustained efforts to enhance the Party's capacity to elicit, respond to and direct changing public opinion; pragmatism in economic and financial management; and the promotion of nationalism in place of Communism.

87 citations


Journal ArticleDOI
TL;DR: In this article, the authors focus on a concept of citizenship grounded in a local context and examine the institutional effects with regard to citizenship generated by the establishment of urban neighborhood communities and the enhancement of participation, concluding that the emerging of citizens and citizenship is a vital precondition for developing a civil society.
Abstract: Frequently, civil society is identified with an increase of associational life. Yet, in this article it is argued that the emerging of citizens and citizenship is a vital precondition for developing a civil society. Here I will focus on a concept of citizenship grounded in a local context. Accordingly, it focuses on both the public discourse on citizenship and the institutional effects with regard to citizenship generated by the establishment of urban neighborhood communities and the enhancement of participation. The author's hypothesis is that by virtue of newly established neighborhood communities in urban areas, a gradual transition from ‘masses’ to citizens seems to manifest itself. This transition process will be examined in four central fields: (a) community participation and grassroots elections; (b) self-administration (autonomy) and the attitudes of residents thereto; (c) the growth of individual autonomy; and (d) value engineering by the party state. As the institutional preconditions for a civi...

70 citations


Journal ArticleDOI
TL;DR: The authors report results from a mixed quantitative-qualitative analysis of 168 articles published in China on the question of regime and party legitimacy, finding that ideology remains a leading strategy of future legitimation for the CCP, alongside better known strategies of institution-building and social justice.
Abstract: We report results here from a mixed quantitative–qualitative analysis of 168 articles published in China on the question of regime and party legitimacy. We find that ideology remains a leading strategy of future legitimation for the CCP, alongside better known strategies of institution-building and social justice. We also find that liberalism, while less often proposed, remains a potent critique of regime legitimacy. We use these results to make predictions about the evolutionary path of institutional change of China's political system, linking up Chinese elite debate with the wider scholarly debate of authoritarian durability.

68 citations


Journal ArticleDOI
TL;DR: In this paper, the authors developed an analytical framework for examining China's energy policy-making processes, and used it to explain the recent shifts in the country's energy priorities, by looking at the different stages from agenda setting, through policy choices, to decision making and implementation.
Abstract: This article develops an analytical framework for examining China's energy policy-making processes, and uses it to explain the recent shifts in the country's energy priorities. The authors analyze the decisive factors in China's energy sector reforms by looking at the different stages from agenda setting, through policy choices, to decision making and implementation. The article attempts to identify the actors behind, the drivers for, and the constraints to, the progress of energy sector reforms in China since 1993 and to follow the evolution of these drivers and constraints. This will allow a better understanding of the possible future trends of energy sector reform, the institutional limits to policy change and the constraints to implementation.

67 citations


Journal ArticleDOI
TL;DR: Based on interviews conducted in four major Chinese cities, this paper examined the determinants of lending by state-owned commercial banks to manufacturing firms in China and found that the perceived lending bias against non-state-owned enterprises could actually be reconciled as rational decision-making by SOCBs, partly due to the higher risk involved and high transaction costs in the risk evaluation of such lending.
Abstract: Based on interviews conducted in four major Chinese cities, this paper examines the determinants of lending by state-owned commercial banks (SOCBs) to manufacturing firms in China. The conventional relationship banking and transaction lending theories helps explain at least part of the lender–borrower relationship in China. The perceived lending bias against non-state-owned enterprises could actually be reconciled as rational decision-making by SOCBs, partly due to the higher risk involved and/or high transaction costs in the risk evaluation of such lending. The existence of unofficial lending criteria at SOCBs nonetheless provides golden rent-seeking opportunities for unscrupulous bankers to exploit the regulatory loopholes for financial gain.

58 citations


Journal ArticleDOI
TL;DR: In this article, the authors address the following questions about China's move to preferential trade: (a) What forces are driving China's approach to the negotiation of preferential trade agreements? (b) To what extent is it possible to untangle economic and political motivations in China's choice of partners for PTA negotiations? And, which economic interests are being pursued most aggressively?
Abstract: China was a latecomer to the preferential trading bandwagon that has swept East Asia in the years since the financial crises. The Chinese government was unwilling to go down the path of negotiating bilateral and minilateral agreements until the terms of its accession to the World Trade Organization were finalized. Since then, it has become one of the most active participants in the negotiation of preferential trading arrangements, currently being engaged in negotiations with more than 20 countries. The paper will address the following questions about China's move to preferential trade: (a) What forces are driving China's approach to the negotiation of preferential trade agreements? (b) To what extent is it possible to untangle economic and political motivations in China's choice of partners for PTA negotiations? And, which economic interests are being pursued most aggressively? (c) How are conflicting domestic interests reconciled in the policy-making process? (d) To what extent will the new PTAs facilita...

33 citations


Journal ArticleDOI
TL;DR: In this article, the authors focus on the procedural dimension of post-election village governance and argue that there has been considerable formal institutionalization regarding the three democratic rights of decision-making, management and supervision in village affairs.
Abstract: Most studies of political reforms in rural China have concentrated on village elections, pointing out important effects of this democratic mechanism. However, while significant in broadening the ‘access to power’, even well conducted village elections fall short of altering the ‘exercise of power’, which has received far less research attention. Therefore, this article focuses on the procedural dimension of post-election village governance. It argues that there has been considerable formal institutionalization regarding the three democratic rights of decision-making, management and supervision in village affairs. This analysis is based on close scrutiny of provincial-level legislation on village governance, which constitutes a crucial, though largely untapped, source of information on village self-administration. In conclusion, the article suggests that progress in institutionalization has improved opportunities for villagers to manage their own affairs and control elected village officials, while at the ...

33 citations


Journal ArticleDOI
TL;DR: This paper argued that the CCP government has actually strengthened its hold on power in recent years, rather than weakening it, as many analysts predicted, using CCP propaganda work in the current era as a lens to consider why this might be so and utilizes the term "Popular Authoritarianism" to describe China's new political order.
Abstract: The issue of whether or not the current regime in China is sustainable is one of the key questions of interest to specialists on Chinese politics today. The authors of this paper contend that the CCP government has actually strengthened its hold on power in recent years, rather than weakening it, as so many analysts predicted. The paper uses CCP propaganda work in the current era as a lens to consider why this might be so and utilizes the term ‘Popular Authoritarianism’ to describe China's new political order.

29 citations


Journal ArticleDOI
TL;DR: In this article, the authors argue that these improvements in election procedures can only occur when township officials are removed from the village leader selection process, and that the increase in regime legitimacy is closely tied to reduction in the authority of mid-level officials to directly select subordinates.
Abstract: Over the last 20 years, an increasing number of villagers have experienced free and fair elections, and this has contributed to the legitimacy of local democratic practices as well as the authoritarian regime. Yet, these improvements in election procedures can only occur when township officials are removed from the village leader selection process. As a result, the increase in regime legitimacy is closely tied to reduction in the authority of mid-level officials to directly select subordinates. This process, where it has occurred, has generated a bottom-up institutionalization of democratic practices, and suggests that researchers should not dismiss the importance of election procedures too quickly.

28 citations


Journal ArticleDOI
TL;DR: This article argued that China's attitude toward UNPKOs changed as a result of the change in international norm from prioritizing sovereignty to prioritizing human rights, and the diffusion of the norm of human rights into China through a variety of agents such as foreign policy elites and two special groups of PLA officers.
Abstract: China's attitude towards UNPKOs has experienced two shifts since the 1980s. One is about changing from non-financial-support, non-voting, and non-participation concerning peacekeeping to financial-support, voting, and participation in 1981. The other shift concerns China's gradual change in its attitude toward non-traditional peacekeeping over the 1990s. This paper provides a norm perspective on the issue. Specifically the author argues that China's attitude toward UNPKOs changed as a result of the change in international norm from prioritizing sovereignty to prioritizing human rights, and the diffusion of the norm of human rights into China through a variety of agents such as foreign policy elites and two special groups of PLA officers.

Journal ArticleDOI
TL;DR: This paper argued that Chinese business networks in both "greater China" and China proper are characterized more by diversity and fragmentation than by cultural coherence and homogeneity, and argued that many Chinese businesses, embedded in the expanding global and regional production networks, have taken on important transnational characteristics.
Abstract: There is an implicit but commonly held assumption that Chinese businesses are distinctively Chinese. Casting them in unitary and national terms, this assumption has often provided the underpinnings for the conception of the strength of Chinese businesses as signs of an emerging China threat. Drawing on a global production networks (GPN) approach, this paper aims to question the assumption by arguing that many Chinese businesses, embedded in the expanding global and regional production networks, have taken on important transnational characteristics. Given these transnational connections, Chinese business networks in both ‘Greater China’ and China proper are characterized more by diversity and fragmentation than by cultural coherence and homogeneity. This analysis of the transnationalization and fragmentation of contemporary Chinese businesses helps better understand and respond to the complex challenge posed by the economic dynamism in China.

Journal ArticleDOI
TL;DR: In this paper, Li et al. suggest that the institutional advantageous position of the central government and shrewd bargaining strategies played an important role in helping central government maintain control over the fiscal system, inducing mutually acceptable outcomes for both the center and localities.
Abstract: China's post-Mao reforms have devolved significant economic and fiscal power from central to local governments. However, decentralization from above involves political risks: weakened central control and increased local discretion may allow local governments to engage in self-interested activities with negative externalities to other regions and even the whole nation. A crucial question thus arises: how can the national government enjoy the benefits of decentralization while at the same time keeping the undesirable local behaviors in check? Through analysis of China's fiscal reforms, this paper suggests that the institutional advantageous position of the central government and its shrewd bargaining strategies played an important role in helping the central government maintain control over the fiscal system, inducing mutually acceptable outcomes for both the center and localities.

Journal ArticleDOI
TL;DR: In this article, Guizhou and Yunnan, two provinces with similar geographies, institutions and natural resource endowments, were studied and three political factors purported to explain differences in provincial policy: constraints and opportunities from central authorities, characteristics of the provinces, and attributes of individual provincial leaders.
Abstract: Focusing on Guizhou and Yunnan, two provinces with similar geographies, institutions and natural resource endowments, this paper asks why provincial leaders adopted markedly disparate economic strategies. Using data from the early 1980s to 2003 gathered from fieldwork and secondary sources, it focuses on three political factors purported to explain differences in provincial policy: (a) constraints and opportunities from central authorities; (b) characteristics of the provinces; and (c) attributes of individual provincial leaders. I argue that while the center constrains and encourages certain actions and approaches in the provinces, the experiences and background of individual provincial leaders further affects the choice of strategies implemented there. Moreover, once a particular course is set and receives central support, a form of path dependency can encourage the strategy to continue even after the original leaders have departed. While emphasizing the importance of characteristics of local leaders an...

Journal ArticleDOI
TL;DR: In this paper, the authors examine Chinese leverage in Myanmar through Burmese local politics, such as the power struggle between the central government and local re-construction authority, and argue that China's insistence on a non-intervention policy does not mean that China does not want to influence other countries such as Myanmar.
Abstract: China's non-intervention policy has long been criticized for prolonging the rule of many authoritarian regimes. Myanmar has become one of the classic examples. As China is expected to become a responsible great power, her behavioral patterns have aroused many concerns. This paper aims to re-interpret China's non-intervention policy. While explaining various constraints on China's capability to intervene in the Myanmar government, it shows how China is making efforts to seek a new intervention policy in dealing with countries like Myanmar. It argues that China's insistence on a non-intervention policy does not mean that China does not want to influence other countries such as Myanmar. To assess Chinese leverage and its non-intervention policy toward Myanmar as well as to supplement the current limited academic discussion on Sino–Myanmar relations, in this paper we first examine Chinese leverage in Myanmar through Burmese local politics, such as the power struggle between the central government and local re...

Journal ArticleDOI
TL;DR: In this article, the authors investigated the link between Christian belief and the fight for political change in today's China focusing on the activities of certain Beijing house churches and found that Chinese Christian intellectuals may be able to fulfil a special "bridge-function" in Chinese society.
Abstract: This article investigates the link between Christian belief and the fight for political change in today's China focusing on the activities of certain Beijing house churches. It formulates the hypothesis that Chinese Christian intellectuals may be able to fulfil a special ‘bridge-function’ in Chinese society. This hypothesis is tested against evidence based on a close reading of two Beijing house church publications (Aiyan and Fangzhou) and interviews with intellectuals closely associated with these as well as ‘ordinary’ Christian intellectuals. Areas investigated include education, urban–rural co-operation, the demographic make-up of congregations, the Christian understanding of liberalism, and the activities of Chinese Christian human rights attorneys. It comes to the conclusion that while Christian intellectuals have great potential to play an important role in China's process of democratization, their most prominent members continue the splittist tradition of previous dissident groups while the more me...

Journal ArticleDOI
TL;DR: The authors evaluate what we can learn and have learned about grassroots democratization in the Chinese countryside from nationally and locally representative sample survey data, and conclude that we can find anecdotal evidence to support practically any claim about village democratization, but from such stories we cannot learn nothing about the status, trends, or patterns of village democratisation.
Abstract: In assessing Chinese village elections we must sort and discriminate as we consult the ‘mountain of evidence’ that has accumulated over the past two decades. We can find anecdotal evidence to support practically any claim about village democratization, but from such stories we can learn nothing about the status, trends, or patterns of village democratization. This article evaluates what we can learn and have learned about grassroots democratization in the Chinese countryside from nationally and locally representative sample survey data.

Journal ArticleDOI
TL;DR: In this article, the authors examine the process of China's participation in regional cooperation in Asia and the factors that affect its participation, focusing on a changing China-ASEAN relationship that is reshaping Asia.
Abstract: This paper attempts to examine the process of China's participation in regional cooperation in Asia and the factors that affect its participation. It focuses on a changing China–ASEAN relationship that is reshaping Asia. To build a peaceful and stable external environment, China has been making various efforts, political, economic and in the security field, to maintain and upgrade a harmonious and constructive relationship with its neighboring East Asian countries. Politically, China acceded to the Treaty of Amity and Cooperation in Southeast Asia (TAC), essentially accepting the code of conduct stipulated by ASEAN and prompting other regional countries to observe this code. China has been supportive of ASEAN, playing a leadership role in East Asian regional cooperation. China and Asian regional cooperation is an evolving concept and a couple of theoretical points may be taken into account, such as how regional cooperation influences major powers' international behavior and vice versa.

Journal ArticleDOI
TL;DR: The authors investigates why some energy decisions are made faster than others in a reformed and globalized China and uncovers five factors that determine whether a proposal becomes a decision in the Chinese political system: associated benefits of the proposed decision for other policy problems; presence of a consistent 'issue champion'; strength of mobilized and united'veto players'; vertical and horizontal support; and clear policy preferences of the central leadership.
Abstract: This paper investigates why some energy decisions are made faster than others in a reformed and globalized China. This investigation uncovers five factors that determine whether a proposal becomes a decision in the Chinese political system: (1) associated benefits of the proposed decision for other policy problems; (2) presence of a consistent ‘issue champion’; (3) strength of mobilized and united ‘veto players’; (4) vertical and horizontal support; and (5) clear policy preferences of the central leadership. The paper argues that the Chinese decision-making process has become increasingly consultative, iterative, and participatory and that it is also increasingly prone to deadlock, inaction, and paralysis. Thus, the Chinese decision-making process is increasingly similar to that of the United States in the era of reform and globalization. While the capacity of the Chinese state to make and implement distributive policies has remained largely unchanged, reform and globalization has weakened its capacity to...

Journal ArticleDOI
TL;DR: For example, the authors argues that China's war on terrorism is among its most prominent and least understood of campaigns, and argues that although initially brutal, their efforts represent one of the few successes in the global struggle against Islamist terrorism.
Abstract: China's war on terrorism is among its most prominent and least understood of campaigns. An indigenous insurgency with links to the global jihad has threatened the government's grip on a massive region of northwestern China known as Xinjiang. Riots, bombings, ambushes, and assassinations have rocked the region under separatist and Islamist banners. China acted early and forcefully, and, although initially brutal, their efforts represent one of the few successes in the global struggle against Islamist terrorism. China's campaign, which has reshaped local society and government institutions, has been so effective that scholars and statesmen now debate whether China genuinely confronts a terrorist threat from Xinjiang.

Journal ArticleDOI
TL;DR: Li et al. as discussed by the authors explained the shifts and strains in the 2008 super-ministry government reform, focusing on the reform of government institutions of economic governance, and suggested that the key to substantial progress in remaking the Chinese state into a macroeconomic regulator is the reformation of the National Development and Reform Commission (NDRC).
Abstract: This report explains the shifts and strains in the 2008 super-ministry government reform, focusing on the reform of government institutions of economic governance. Drawing on interviews with officials and scholars in Beijing after the reform, and on Chinese-language reports and books, this study suggests that the key to substantial progress in remaking the Chinese state into a macroeconomic regulator is the reform of the National Development and Reform Commission (NDRC), which was lacking in the 2008 scheme. Its powerful authority for investment endorsement is particularly problematic. A continued administrative malaise in the energy sector and strategically articulated state engagement in industrial development also should be noted as the salient features of China's economic governance.

Journal ArticleDOI
TL;DR: In practice, Mao's Marxism-Leninism has already been less influential in China as discussed by the authors, while China remains a socialist power adhering to the doctrine of Marxism- Leninism.
Abstract: Ideologically, China, at least in name, remains a socialist power adhering to the doctrine of Marxism–Leninism. In practice, Marxism–Leninism has already been less influential in China. The Chinese...

Journal ArticleDOI
TL;DR: In this article, the authors argue that village elections are presently at a crossroad: processes and rules still must be improved and further delays will only undermine the credibility of village elections.
Abstract: Village elections are presently at a crossroad: processes and rules still must be improved and further delays will only undermine the credibility of village elections. This paper adopts a historical perspective and an institutional approach to argue that reform of village electoral institutions is still a top priority in rural political development. It argues for the creation of a national electoral commission tasked with implementing, supervising, and adjudicating village elections. It then discusses the rationale for initiating candidate-initiated and candidate-centered elections and proposes altering campaigning as well as the ‘two majority’ rule. Last but not least, I advocate the synchronization of election dates. A fixed election date, at the provincial level if not nationally, would enhance the importance of elections, attract more media coverage, and foster civic culture.

Journal ArticleDOI
TL;DR: In this paper, the authors suggest that money ruled in politics and the prevalence of personal greed caused corruption to worsen, and that the devolution of Taiwan's democracy during the Chen era rather than its consolidation explains the new administration's loss of public support.
Abstract: When Chen Shui-bian won the presidency in 2000 and the Democratic Progressive Party became the ‘ruling party’, many observers said Taiwan experienced democratic consolidation. Nevertheless Chen and his supporters continued to talk of democratization in the ensuing years. But political reform, advances in civil liberties, and ridding the system of corruption must be considered essential to that process. Reform failed due to the fact that Chen's party did not have a majority in the legislature and the president showed poor leadership. Civil liberties deteriorated owing to Chen playing ethnic politics as well as his administration's lack of respect for democratic values. The view that money ruled in politics and the prevalence of personal greed caused corruption to worsen. These three factors suggest the devolution of Taiwan's democracy during the Chen era rather than its consolidation and explain the new administration's loss of public support.

Journal ArticleDOI
TL;DR: In this paper, the authors explore the environmental compliance of internationally oriented firms in China and find that there is only modest market-induced enhancement of environmental performance among Chinese companies in terms of their compliance with environmental law.
Abstract: How does participation in the global economy influence the pollution management practices of firms in a developing country? Research on trade and the environment leads one to anticipate that integration into the international economy should enhance domestic firm environmental behavior. Integration facilitates access to cleaner technology, exposes domestic firms to global norms of corporate environmentalism, and compels developing country firms to meet trading partners' environmental standards or risk losing market access. This article tests these propositions by exploring the environmental compliance of internationally oriented firms in China—a country whose rapid economic expansion and increasingly prominent role as a foreign investor have considerable implications for protection of the global environment. It finds that there is only modest market-induced enhancement of environmental performance among Chinese companies. In terms of their compliance with environmental law, Chinese firms with connections t...

Journal ArticleDOI
TL;DR: Wang et al. as discussed by the authors explored the history and development of China's urban housing market, its impact on the financial system, and the government's efforts to grapple with new issues that have surfaced alongside these reforms.
Abstract: The privatization of urban housing and the subsequent development of a mortgage market have played a major role in the development of China's financial system. This paper explores the history and development of China's urban housing market, its impact on the financial system, and the government's efforts to grapple with new issues that have surfaced alongside these reforms. This paper concludes that although housing privatization has helped strengthen the financial standing of state-owned enterprises, urban residents, and commercial banks alike, systematic weaknesses must be addressed in order to promote sustainable economic growth.

Journal ArticleDOI
TL;DR: This article examined the rise of a new marriage form among migrant couples in Dongguan, a newly industrializing boomtown in the Pearl River Delta of Guangdong province, and called this marriage a neo-local marriage as migrant couples set up their post-marital residence in a destination locale that is thousands of miles away from their hometowns.
Abstract: In the past two decades, migration has become a quintessential feature defining the identity and life experiences of millions of young rural women who have left their home villages and migrated to urban areas for wage labor in China. However, due to the combined effects of the state-instituted hukou system and women's traditional gender roles of childcare and household duties, many female migrants face difficult choices when it is time for them to get married. In this study I examine the rise of a new marriage form among migrant couples in Dongguan, a newly industrializing boomtown in the Pearl River Delta of Guangdong province. I call this marriage a neo-local marriage as migrant couples set up their post-marital residence in a destination locale that is thousands of miles away from their hometowns. I first describe some of the new features of neo-local marriages for young migrant couples in Dongguan. I then explore Dongguan's boomtown status in the new economy, the changing labor market, and young migra...

Journal ArticleDOI
TL;DR: The authors explores the effects of radical nationalism on China's democratization process and argues that if nationalism takes the dominant position in China's political process, Chinese reform will go astray, and the new-left focuses on domestic issues, while nationalism tackles more international relationships.
Abstract: The crippled economic and political reform in China has come with two schools of thought: the new-left and nationalism. The new-left focuses on domestic issues, while nationalism tackles more international relationships. This paper explores the effects of radical nationalism on China's democratization process. It argues that if nationalism takes the dominant position in China's political process, Chinese reform will go astray.

Journal ArticleDOI
TL;DR: The authors proposed a more comprehensive framework that includes an analysis of election procedures, cadre behaviour, villager awareness, and the larger cultural context, which would connect the village, township and county levels and shift attention toward legitimacy rather than "democracy".
Abstract: Though it is important that future research on village elections focuses more systematically on the post-election period than on ongoing electoral institutionalization, it is not enough to look at the village level alone if one wants to assess the quality of village governance. What we need is a more comprehensive framework that includes an analysis of election procedures, cadre behaviour, villager awareness, and the larger cultural context, which would connect the village, township and county levels and shift attention toward legitimacy rather than ‘democracy’.

Journal ArticleDOI
TL;DR: In this article, the authors present evidence on the context, magnitude, and probable macroeconomic impacts of the privatization of Chinese urban housing in the 1998-1999 period, and demonstrate the reaction of Chinese economic policymaking to economic stresses, and the capacity of the Chinese state to manage the business cycle.
Abstract: This paper presents evidence on the context, magnitude, and probable macroeconomic impacts of the privatization of Chinese urban housing in the 1998–1999 period. Various sources suggest that approximately one half of urban housing stocks were sold by work units to their residents at prices likely between one-fifth and four-fifths of their fair value during the period in question. This transaction significantly increased the wealth of urban Chinese households and improved the cash flows of state-owned enterprises. The case demonstrates the reaction of Chinese economic policymaking to economic stresses, and the capacity of the Chinese state to manage the business cycle.