Economic Policy of the People's Republic of China

Foreword
Contents
Abbreviations
1: Introduction
1.1 Aim of the Book
1.2 Overview of Economic Literature
1.3 Principles of the Chinese Economy
1.4 Structure of the Book
References
2: Data Validity
2.1 Static Data Collection
2.1.1 National Statistical Office
2.1.2 Civil Servants
2.2 Case Study: Unemployment Statistics
2.2.1 Specificities of the Labour Market Situation
2.2.2 Special Features of Unemployment Statistics
2.2.3 Change in Unemployment Statistics Since 2018
2.3 Conclusion
References
3: Economic Development Since 1949
3.1 Start-Up Phase 1949 to 1956
3.1.1 Domestic Political Discourse
3.1.2 Economic Development and Changes in Ownership Structures
3.1.3 Administrative Measures
3.1.4 Foreign Policy Development
3.2 Period of Power Struggles from 1957 to 1976
3.2.1 Second Five-Year Plan (1958–1962)
3.2.2 Foreign Policy Development
3.2.3 Cultural Revolution
3.3 Opening Period from 1977 to 1990
3.3.1 Pragmatic Economic Policy
3.3.2 One-Child Policy
3.4 Economic Growth Since 1990
References
4: State Structure
4.1 The Communist Party of China
4.2 Xi Jinping
4.3 National People’s Congress
4.4 State Council
4.5 Administrative Divisions and Local Governments
4.6 Court Organisation
4.7 Conclusion
References
5: Economic Policy Goals and Discourses
5.1 Economic Policy Objectives
5.1.1 Five-Year Plans
5.1.2 New Normal
5.1.3 Made in China 2025
5.1.4 Reform Backlog
5.2 Discussion of the China Model
5.2.1 Origin of the Term
5.2.2 Current Discourse
5.2.2.1 Justin Yifu Lin
5.2.2.2 Zhang Weiying
5.2.2.3 International Opinions
5.2.2.4 Transferability
5.2.2.5 State Capitalism as an Element of the China Model
5.2.3 Comparable Models
5.2.3.1 Singapore Model
5.2.3.2 East Asian Economic Model
5.3 Conclusion
References
6: State-Owned Enterprises
6.1 Nationalisation of Enterprises
6.2 Characteristics of State-Owned Enterprises
6.2.1 Internal Structure of State-Owned Enterprises
6.2.2 Influence Mechanisms of the State
6.3 Number and Productivity of State-Owned Enterprises
6.4 Economic Efficiency of State-Owned Enterprises
6.4.1 Competitiveness
6.4.2 State Intervention
6.4.3 Social Responsibility
6.4.4 Zombie Companies
6.5 State Enterprise Reforms
6.5.1 Socialisation
6.5.2 Mergers
6.5.3 Mixed Ownership
6.5.4 Debt-Bond Transfer
6.5.5 Corporate Governance Reforms
6.6 Return to a Planned Economy
6.7 Conclusion
References
7: Private Company
7.1 Emergence of Entrepreneurship
7.2 Characteristics of Private Companies
7.2.1 Importance for the Economy and the Labour Market
7.2.2 Sectoral Focus of Private Companies
7.2.3 Success of Private Companies
7.2.3.1 Networks
7.2.3.2 Interdependence Between Government and Private Enterprise
7.3 Start-Up Scene
7.3.1 Definition of Start-Up Companies
7.3.2 Presentation of the Chinese Start-Up Scene
7.3.2.1 Development of the Start-Up Scene
7.3.2.2 Scope of the Start-Up Scene
7.3.2.3 Priority Sectors
7.3.2.4 International Influences
7.3.3 Policy Guidelines
7.3.3.1 Torch Program
7.3.3.2 Mass Entrepreneurship Programme
7.3.4 Promoting the Start-Up Scene
7.3.4.1 State Support Instruments
7.3.4.2 Government and Private Support Instruments
7.3.5 Practical Example: Zhonguangcun (Beijing)
7.3.6 Special Features of the Chinese Start-Up Scene
7.4 Insolvencies of Companies
7.4.1 Bankruptcy Law
7.4.1.1 Scope of Application
7.4.1.2 Insolvency Application
7.4.1.3 Reasons for Insolvency
7.4.1.4 Insolvency Administrator
7.4.1.5 Creditors
7.4.1.6 Meeting of Creditors
7.4.1.7 Insolvency Court
7.4.1.8 Insolvency Proceedings
7.4.2 Practical Application
7.4.2.1 Taizinai
7.4.2.2 East Star Airlines
7.4.2.3 Circumvention Possibilities
7.5 Conclusion
References
8: Luxury Consumption
8.1 Luxury and Luxury Goods
8.1.1 Definition and Delimitation of the Concept of Luxury
8.1.2 The Chinese Luxury Goods Market
8.1.3 The Relativity of Luxury
8.2 Luxury in the Chinese Transformation Society
8.2.1 Rapid Economic Development
8.2.1.1 The Formation of a New Society
8.2.1.2 The Attractiveness of the Chinese Luxury Market
8.2.2 Socio-Economic and Demographic Factors
8.2.2.1 Purchasing Power
8.2.2.2 China’s Elite
8.2.2.3 Middle Class
8.2.2.4 Wealth and Inequality
8.2.2.5 Demographic Development
8.2.2.6 Age Structure
8.2.2.7 Spatial Disparities
8.2.2.8 The Cultural Factor
8.2.2.9 Corruption and Trademark Counterfeiting
8.3 Conclusion
References
9: Labour Market
9.1 Development of the Labour Market
9.1.1 Development from 1949 to 1976
9.1.2 Development from 1977 to 2000
9.1.3 Development After 2001
9.2 Labour Migration
9.2.1 Internal Migration Policy
9.2.2 Reform of the Hukou System
9.2.3 Standardisation of Labour Market Regulations
9.3 China at Lewis Turning Point
9.3.1 Lewis Model
9.3.2 Applicability to the People’s Republic of China
9.3.2.1 Surplus Labour and the “China Paradox”
9.3.2.2 Development of Wages
9.3.2.3 Supply and Demand in the Labour Market
9.3.2.4 Income Disparities Between Urban and Rural Areas
9.3.3 Effects
9.3.4 Government Measures
9.4 Conclusion
References
10: E-commerce
10.1 General Conditions
10.2 Platform Economy
10.2.1 Policy Objective
10.2.2 Social Credit System
10.2.3 Alibaba
10.3 E-commerce in the Countryside
10.3.1 State Objectives
10.3.2 Taobao Villages
10.3.3 Examples of E-commerce Villages
10.3.3.1 Qingyanliu/Yiwu
10.3.3.2 Suichang
10.3.3.3 Jinyun
10.4 Conclusion
References
11: Fiscal and Financial Policy
11.1 General Fiscal and Financial Policy
11.1.1 Tax Policy
11.1.1.1 Corporate Taxation
11.1.1.2 Income Tax
11.1.2 Public Debt
11.1.3 Institutions and Banks
11.1.4 Shadow Banks
11.1.5 Characteristics of the Financial System
11.1.5.1 Inflation
11.1.5.2 Exchange Rate
11.1.6 Stock Market
11.2 FinTech
11.2.1 Definition of FinTech
11.2.2 Market Situation
11.2.2.1 Development
11.2.2.2 Market Segments
11.2.2.3 Participants in the FinTech Market
11.2.3 Success Factors of Chinese FinTech Companies
11.2.3.1 Market Regulation in China
11.2.3.2 High Financial Demand from the Population
11.2.3.3 TPOP Replaces Cash
11.2.3.4 Influence of BAT and Banks on the FinTech Market
11.2.3.5 Market Size and Customer Characteristics
11.2.3.6 Dealing with Data Protection
11.2.3.7 Risks and Security of FinTech Applications
11.3 Crowdfunding
11.3.1 Definition of Crowdfunding
11.3.1.1 Crowdfunding Models
11.3.1.2 Types of Crowdfunding Donors
11.3.1.3 Financing Phases
11.3.2 Crowdfunding Platforms
11.3.3 Regulatory Intervention
11.3.4 China’s Peer-to-Peer Fraud Cases
11.3.4.1 The Case of E’zubao
11.3.4.2 Social Implications of the Ponzi Scheme
11.4 Conclusion
References
12: Agricultural Policy and Food Supply
12.1 Validity of the Data
12.2 Food Requirements of the Chinese Population
12.2.1 Development of Eating Habits
12.2.2 Forecast of Future Food Demand
12.3 Classification of the Land Use Plan
12.4 National Agricultural Production in Terms of Imports and Exports
12.5 Self-Sufficiency Rates for the Various Agricultural Products
12.5.1 Forecast of the Further Development of Self-Sufficiency Rates
12.5.2 Future Development of Production Possibilities
12.5.2.1 Inequality in the Distribution of Water Resources
12.5.2.2 Reduction of the Area Under Cultivation
12.6 Conclusion
References
13: Environmental Policy
13.1 Environmental Situation
13.2 Institutional Development
13.3 Chinese Government Policy
13.3.1 The 13th Five-Year Plan
13.3.2 Laws and Action Plans
13.3.2.1 Revised Environmental Law
13.3.2.2 Prevention of Air Pollution
13.3.2.3 Three-Year Action Plan for the Victory of the Blue Sky War
13.3.3 Implementation of Industrial Restructuring
13.3.3.1 Implementation Process
13.3.3.2 Regional Resistance
13.3.4 International Position on Climate Policy
13.3.5 Emissions Trading
13.3.6 Example of the Beijing-Tianjin-Hebei Region
13.4 Environmental Awareness
13.5 Water Resources
13.5.1 Existing Water Resources in China
13.5.2 Water Resources on the Tibetan Plateau
13.5.3 Measures Taken by the Chinese Government
13.5.3.1 Dams
13.5.3.2 The South-North Water Transfer Project (SNWDP)
13.5.3.3 Diversion of the Brahmaputra River
13.5.3.4 Desalination Plants
13.5.3.5 Wastewater Use
13.5.4 Water Conflict Between China and India
13.6 Waste Management
13.6.1 Institutions
13.6.2 Waste Disposal
13.6.2.1 Landfilling
13.6.2.2 Waste Incineration Plants
13.6.2.3 Composting
13.6.2.4 Cockroach Farms
13.6.3 Waste Import Ban
13.7 Conclusion
References
14: Energy Policy
14.1 Nuclear Energy
14.1.1 Nuclear Power Plants
14.1.2 Resources
14.1.2.1 People’s Republic of China
14.1.2.2 Kazakhstan
14.1.2.3 Australia
14.1.2.4 Canada
14.1.3 Reprocessing
14.1.4 Waste Disposal
14.1.5 Safety of Nuclear Installations
14.1.5.1 Locations
14.1.5.2 Provision of Specialist Staff
14.1.5.3 Quality Assurance
14.1.6 Export of Chinese Nuclear Power Technology
14.2 Renewable Energies
14.2.1 13th Five-Year Plan
14.2.2 Hydro Energy in China
14.2.3 Wind Energy in China
14.2.4 Solar Energy
14.2.4.1 Geographical Distribution of Solar Energy Capacity
14.2.4.2 Photovoltaic Market
14.3 Conclusion
References
15: Foreign Trade
15.1 Chinese Foreign Trade Policy
15.1.1 China in the WTO
15.1.1.1 Accession in 2001
15.1.1.2 Concessions and Commitments
15.1.1.3 Implementation of the Agreements
15.1.2 Is China a Market Economy?
15.1.2.1 Importance of Market Economy Status in the WTO
15.1.2.2 European Perspective
15.1.2.3 American Perspective
15.1.2.4 Chinese Perspective
15.1.2.5 Consequences
15.1.3 European-Chinese Trade Relations
15.1.3.1 EU-China Partnership and Cooperation Agreement (PCA)
15.1.3.2 EU-China 2020
15.1.3.3 European Perspective
15.1.3.4 Chinese Perspective
15.2 Trade Conflict with the USA
15.2.1 Causes and Measures
15.2.1.1 Customs Duties
15.2.1.2 Technology and Industrial Espionage
15.2.2 Consequences and Possible Future Scenarios
15.3 China as a Global Player: The New Silk Road
15.3.1 Historical Background
15.3.2 Significance and Scope
15.3.2.1 The New Silk Road
15.3.2.2 Scope of the Investment and Investors Involved
15.3.3 Policy Objectives and Targets
15.3.4 Types of Support
15.3.4.1 Loans
15.3.4.2 Construction Work
15.3.4.3 Know-How
15.3.5 Criticism
15.4 Conclusion
References
16: Concluding Remarks
References