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By Rui Huaichuan

According to wide unique research, Globalisation, Transition and improvement in China explains China's improvement method and its underlying forces, and the good fortune of this approach. It examines China's gradualist technique which emphasizes improvement first and regards transition and globalization as secondary, enacting liberalization of family markets and integration into the area economic system in a paced means, fending off dramatic adjustments which would bog down or perhaps opposite improvement, and argues that this method is commonly right. It considers China's mess ups, together with the failure to construct huge globally aggressive companies regardless of the purpose to do that, and exhibits how China's fiscal process has been applied intimately with a case learn of the big and significant coal undefined.

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Extra resources for Globalisation, Transition and Development in China: The Case of the Coal Industry (Routledgecurzon Studies on the Chinese Economy)

Sample text

45 by the end of the 1990s (Ma and Wang 2001: 43). Before economic reforms China was a more egalitarian society. Twenty years later income inequality is on a par with the income inequalities of her neighbouring countries in east Asia and the Pacific region (Yao 2000: 5). The rural–urban income gap has been responsible for half of the increase in inequality since 1985 (World Bank 1997a: 2–3). It is commonly agreed by China’s policy-makers that these remaining challenges imply that the country must make a greater effort to improve its rural development: In early industrializing countries, during the development period when their per capita GDP was over US$1000, they usually implemented policies that completely supported industrialization by giving way or sacrificing agriculture first, then letting the established industrialization protect or develop agriculture later.

Ten years into transition in eastern Europe and twenty years in China, even Kornai (2000: 2) confessed that ‘experience has proved that strategy A was superior to strategy B’. Åslund (2002: 93) also admitted that ‘the Chinese model stood out as a successful model of postcommunist economic transition’. However, this change of view arose primarily from the recognition of China’s economic achievement vis-àvis Russia and other transitional economies, rather than from understanding the basic necessity of such a strategy.

Taking the nation’s development requirements into consideration and fearing these challenges from transition, China employed a gradualist transition. TVE development not only improved her economy, but created a competition for SOEs and forced them, in turn, to be transformed. Moreover, the improved economy reduced difficulties of further transition and thus created a beneficial chain effect. This is the biggest difference between Chinese and Russian transitions. China conducted transition accompanied by development and it was thus far less painful.

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