Capitalizing China
Joseph P. H. Fan and Randall Morck
Abstract
China's economic boom over the last two decades has taken many analysts by surprise, given the ongoing role of central government planning. China's current growth trajectory suggests that the size of its economy could soon surpass that of the United States. Some argue that continued growth and the expanding middle class will ultimately exert pressure on the government to bring about greater openness of the financial market. To better understand China's recent economic performance, this book examines the distinctive system it has developed: “market socialism with Chinese characteristics.” While ... More
China's economic boom over the last two decades has taken many analysts by surprise, given the ongoing role of central government planning. China's current growth trajectory suggests that the size of its economy could soon surpass that of the United States. Some argue that continued growth and the expanding middle class will ultimately exert pressure on the government to bring about greater openness of the financial market. To better understand China's recent economic performance, this book examines the distinctive system it has developed: “market socialism with Chinese characteristics.” While China's formal institutional makeup resembles that of a free-market economy, many of its practices remain socialist, including strategically placed state-owned enterprises that wield influence both directly and through controlled business groups, and Communist Party cells whose purpose is to maintain control of many segments of the economy. China's economic system, the contributors find, also retains many historical characteristics that play a central role in managing the economy. These and other issues are examined in chapters on China's financial regulations, corporate governance codes, bankruptcy laws, taxation, and disclosure rules.
Keywords:
economic boom,
central government planning,
expanding middle class,
financial market,
economic performance,
market socialism,
Chinese characteristics,
free-market economy,
state-owned enterprises,
controlled business groups
Bibliographic Information
| Print publication date: 2012 |
Print ISBN-13: 9780226237244 |
| Published to Chicago Scholarship Online: September 2013 |
DOI:10.7208/chicago/9780226237268.001.0001 |
