Handbook of Chinese Economics

Contents
1 Overview: Economic Research in China: Analysis Based on Papers Published in the Economic Research Journal
1.1 The Evolution of Economic Research in China
The Transformation of the Research Paradigm and the Challenge of the Rural Issue (1978–1984)
Theoretical Innovations on Socialist Economy with Chinese Characteristics and Debates on Reform Strategy (1985–1991)
1.2 The Establishment of the Theory of Socialist Market Economy
From Planned Economy to Commodity Economy, Market Economy, and Socialist Market Economy
Theoretical Innovations on Ownership Structure and Distribution in the Primary Stage of Socialism
1.3 Gradual Reform, Growth Miracle, and Macro Stability
The Path of Gradual Reforms
The Economic Growth Miracle of China
Comprehensive Reforms and Macroeconomic Stability During the Transition Period
1.4 Theory of China’s Opening Up
The Switch in Development Strategy from Inward to Outward
The Dynamic Interaction Reform and Opening Up
The Big Country Model
1.5 Summary and Prospects of Economic Research in China
Subjects and Authors of the Economic Research Journal and International Publications: 1978–1988
The Chinese Road and Socialist Political Economy with Chinese Characteristics
References
2 The Establishment and Development of the Socialist Market Economy Theory
2.1 Introducing the Market Mechanism to Economic Activities and Recognizing the Commodity Economy Status in the Early Stage of Reform and Opening Up—The First Step Towards the Socialist Market Economy Theory
Theoretical Preparations Before 1966
Introducing the Market Mechanism to Social and Economic Activities in the Early Stage of Reform and Opening Up
Sharp Ideological Confrontations in the Process of Establishing the Theory of Socialist Commodity Economy
2.2 The Socialist Market Economy Established at 14th CPC National Congress in 1992
2.3 The Establishment of the Theory of Socialist Market Economy Pushes Reform Forward
2.4 The Decision of the Third Plenum of the 18th CPC Central Committee and Its Influence on the Development of Economic Reform Theories
2.5 Accelerating and Perfecting the Socialist Market Economy and Pushing for Quality Economic Growth in the New Era
2.6 Several Regularities of the Socialist Market Economy
References
3 The Establishment of the Theory of the Primary Stage of Socialism
3.1 The Formation and Development of the Theory of the Primary Stage of Socialism
Stage I: Theoretical Ruminations: From the Third Plenum of the 11th CPC Central Committee to the Sixth Plenum of the 12th CPC Central Committee
Stage II: Formation of the Theoretical System: From the Sixth Plenum of the 12th CPC Central Committee to the 13th CPC National Congress
Stage III: Development and Improvement of the Theory: From the 13th CPC National Congress to Present
3.2 The Scientific Implications of the Theory of the Primary Stage of Socialism
The Basic Characteristics of the Primary Stage of Socialism
The Main Contradictions in the Primary Stage of Socialism
The Party’s Basic Line and Programs in the Primary Stage of Socialism
3.3 The Theory of the Primary Stage of Socialism and Related Economic Research
References
4 The Establishment and Development of the Basic Socialist Economic System Theory
4.1 Break the Dominance of Public Ownership and Allow the Existence and Development of Non-public Sectors
The Rebirth and Development of Household-Owned Businesses
The Boom of the Private Economy
The Introduction and Use of Foreign Investment
4.2 The Establishment of the Basic Socialist Economic System
China’s Reform Got Its Humble Start in the Rural Areas with the Implementation of the Household Contract Responsibility System of Farmlands, Rendering the Separation of Collective Ownership and Management Rights
The Reform of State-Owned Enterprises Began with Expanding Their Business Autonomy and, Starting in 1993, Leaned Toward Establishing a Modern Enterprise System
The 15th CPC National Congress Proposed, for the First Time, to Establish a Basic Economic System in Which Public Ownership Is to Play a Dominant Role and Diverse Forms of Ownership Co-develop Side by Side
The Basic Economic System is the Foundation of the Socialist Market Economic System
4.3 The Consolidation and Improvement of the Basic Economic System
The Two Unswervinglys
The Mixed Ownership Economy as an Important Realization Form of the Basic Economic System
Enhance the Protection of Property Rights and Promote Entrepreneurship
Provide Strong Support for the Development of Private Enterprises
4.4 How to Understand the Dominant Role of Public Ownership in the Socialist Market Economy
References
5 The Innovation and Development of Enterprise Theory
5.1 Explore the Right Direction of the Reform of State-Owned Enterprises: 1979–1992
5.2 Vigorously Promote the Reform of State-Owned Enterprises and Improve the Structure of Corporate Governance (1993–2012)
5.3 Deepen the Reform of State-Owned Enterprises Driven by the Reform of State-Owned Assets (2013 to Present)
5.4 Make Strategic Adjustment to the Layout and Structure of the State-Owned Economy by Grasping Large-Scale Enterprises and Invigorating Small and Medium-Sized Ones
5.5 Reform the Management System of State-Owned Assets and Truly Realize the Separation of Government from Enterprises and from Capital
5.6 Actively Promote the Reform of Mixed Ownership and Develop the Mixed Ownership Economy
References
6 The Construction and Theoretical Innovation of the Socialist Market System
6.1 The Four Stages of the Development of China’s Market System Since Reform and Opening up
Stage I (1978–1991): Various Markets Flourished as Price Reforms Advanced and the Economic Operation Mechanism Pivoted from Central Planning to Market-Oriented
Stage II (1992–2001): As All Sorts of Markets Further Developed, State-Owned Enterprises Were Restructured from the Underlings of the Administrative Departments to Independent Market Players, and the Market Morphed from a Seller’s Market to a Buyer’s Market
Stage III (2002–2012): The Accession to the WTO Gave China the Opportunity to Build a Modern Open Market System
Stage IV (2013-Present): Let the Market Play a Decisive Role in Resource Allocation, Tackle the Tough Issues, and Strive to Have a Perfect Modern Market System by 2020
6.2 Debates About and Breakthroughs of Several Theoretical Issues During the Construction of the Modern Market System
Establishing the Socialist Market System is a Basic Requirement of the Economic System Reform
The 1987 Debate on the Priority of Reform: State-Owned Enterprises or the Economic Operation Mechanism
China’s Accession to the World Trade Organization not only Accelerated Its Integration with Globalization, but also Effectively Speeded up the Establishment of a Modern Market Economy
6.3 The Essential Condition for the Market to Play a Decisive Role in Resource Allocation Is to Speed up the Improvement of the Modern Market System
A Modern Market System is Essential to Ensure that the Market Plays a Decisive Role in Resource Allocation
Several Issues Need to Be Resolved in Order to Speed up the Improvement of the Modern Market System
Promote the Facilitation of Industrial and Commercial Registration System
6.4 Improve the Financial Markets and Establish a Unified Market for Construction Land in Both Urban and Rural Areas
Improve the Financial Markets
Establish a Unified Construction Land Market for Both Urban and Rural Areas
Deepen the Reform of the Management System of Science and Technology and Develop the Market for Technology
References
7 The Interaction of Theory with Practice in China’s Price Reform
7.1 With Remarkable Progress in Price Reforms, 97% of Prices in Goods and Services Are Now Determined by the Market
7.2 The Main Course of Price Reform and Related Theoretical Research
From 1979 to 1984, the Main Task Was to Straighten Out the Twisted Price Structure and Create Conditions for Large-Scale Price Liberalization
After 1985, Price Reform Was Dominated by Price Liberalization, and the Prices of Consumer Products Were Gradually Liberalized in Years 1985–1988
Between 1984 and 1991, China Implemented a Dual Track Price System for Industrial Goods, but Eventually Merged the Two to Form a Unified, Market-Based System
Price Reform of Resource Products Was Proposed at the Turn of the New Century and Has Been Gradually Pushed Forward
7.3 The Price Reform Debates in the 1980s Led to the Confirmation of the Goal of Building a Market Price System
7.4 Push Forward Price Reforms and Keep Inflation at Bay
7.5 Some Regularities and Basic Experiences of the Price Reform
Price Reform Includes Both the Price System and the Price Formation Mechanism. We Should Strive to Promote the Rationalization of the Price System Through the Price Formation Mechanism Reform
Price Reform Should be Carried Out Step by Step. In General, China Has Taken the Following Course of Action: Price Adjustment, Price Liberalization, and Gradually Converging to the International Market
Price Reform Starts with a Narrow Range of Products and Gradually Expands to Cover a Broad Range of Products, Including the Factors of Production
Straightening Out the Price Relationship Through System Transformation While Simultaneously Maintaining Price Stability Has Been the Major Challenge of Price Reform
7.6 Prospects of China’s Price Reform
References
8 The Theory of Industrial Structure and Industrial Organization
8.1 Research Progress from the Beginning of Reform and Opening to the Early 1990s
Introduction of Western Economic Ideas
The Exploration of Industrial Structure
Industrial Policy
Initial Involvement of China’s Industrial Organization
8.2 Review of Economic Research in the 1990s
Further Introduction of Industrial Organization Theories from Western Economics
Studies on Industrial Structure
Industrial Policy
Expand Research on Industrial Organization
Government Policies on Industrial Organization
8.3 Research Progress in the Twenty-First Century
Studies on Industrial Structure
Studies on Industrial Policy
Studies on Industrial Organization
Government Policy on Industrial Organization
8.4 Economic Research and Exploration in the New Era
Industrial Structure
Discussions About Industrial Policy
Industrial Organization
Government Policy on Industrial Organization
8.5 Several Comments
References
9 Macroeconomic Management Theory with Chinese Characteristics
9.1 The Bashan Boat Conference in 1985 Embarked on a New Stage in Macroeconomic Management in China
9.2 Research on Macroeconomic Management Since the Goal of the Socialist Market Economic System Reform Was Established
9.3 Studies and Debates About Inflation
9.4 New Developments in the Theory and Policy of Macroeconomic Management Since the 18th CPC National Congress
References
10 The Reform of China’s Fiscal and Taxation System
10.1 The Five Stages of Reform: A Sketchy Outline
Stage 1: Paving the Way and Building the Bridge for the Overall Economic Reform (1978–1994)
Stage 2: Embarking on the Road of Institutional Innovation (1994–1998)
Stage 3: Constructing a Framework of the Public Finance System (1998–2003)
Stage 4: Further Improving the Public Finance System (2003–2012)
Stage 5: Establishing a Modern System of Public Finance (2012 to Present)
10.2 From Building a Public Financial System to Establishing a Modern Public Finance System
The Main Thread of the Fiscal and Taxation System Reform: Always Obey and Serve the Requirements of the Overall Economic Reform
Matching Fiscal Publicization with Economic Marketization
Matching Fiscal Modernization with State Governance Modernization
10.3 The Direction of Reform: Expediting the Establishment of a Modern Public Finance System
Tackle the Tough, Difficult and Painful Issues
The Fiscal Relationship Between the Central and Local Governments: The Highlight of the Fiscal and Taxation System Reform in the New Era
The Budget Management System: Implementation of the New Budget Law is Urgently Needed
The Taxation System: Direct Tax Reform and Improving Local Taxation System
10.4 Main Conclusions and Implications
References
11 Innovation and Development of China’s Financial Theory
11.1 The Formation of Mobilizational Monetary and Financial System and China’s Economic Takeoff
The Mobilization Mechanism for Savings of Planned Economy
Bank Credit Expansion, Savings Mobilization, and Economic Take-Off Under state’s Implicit Guarantees
11.2 The Conflict Between Mobilizing Monetary and Financial System and the Change in the Way of Economic Growth in China
11.3 Problems Faced with China’s Financial Marketization Reform
11.4 Conclusions
References
12 Innovation and Development of Income Distribution Theory
12.1 The Affirmation of the Principle of “Material Interests” and the Returning to the Principle of “Interest Distribution According to Work of Labor Time” in the Early Stage of Reform and Opening Up
12.2 The Establishment of Socialist Basic Income Distribution System
Diversified Sources and Forms of Residents’ Income
The Establishment of the Basic Distribution System of Socialism
12.3 Further Development of Income Distribution Theory in the New Era
People-Centered Development Thinking is the Main Line of Reform and Practice of Income Distribution in the New Era
Consolidate the Dominant Position of Distribution According to Work, and Strive to Increase the Proportion of Labor Compensation and Labor Income
Improve Distribution According to Factors of Production and Increase Residents’ Property-Based Income Through Multiple Channels
Focus on Cultivating and Growing Middle-Income Groups
Alleviate Poverty in a Targeted Manner and Build a Well-Off Society in an All-Round Way
12.4 Conclusions
Narrow the Income Gap and Pursue Common Prosperity
Further Deal with the Relationship Between Fairness and Efficiency
References
13 From “Development is the Absolute Principle”, to the Scientific Outlook on Development, to the New Development Concept
13.1 Development is the Absolute Principle
Development is the Absolute Principle
13.2 The Source of China’s Economic Growth Miracle
General Drivers of the “Chinese Miracle”
Unique Factors of the “Chinese Miracle”
13.3 The Scientific Outlook on Development
Continuously Changing Conditions and Environment for Development
13.4 The New Development Concept
New Normal of Economic Development and Structural Reform on the Supply Side
“Five Major” Development Concepts
Start a New Journey of Socialist Modernization
References
14 The “Three Rural” Issues in China’s Market-Oriented Economic Reform
14.1 “Three Rural” Issues at the Early Stage of China’s Market-Oriented Economic Reform
Family Contracting System has Shaped the Business Entity of Rural Market Economy
The Development of the Second Township and Village Enterprises has Changed the Single Industrial Structure and Ownership Pattern in the Rural Areas
“Migrant Worker Tide” Hits the Urban–Rural Binary Barriers
14.2 “Three Rural” Issues at the Stage of Deepening China’s Market-Oriented Economic Reform
Different Thoughts on Deepening the Reform of Rural Economic System
The Practice of Deepening the Reform of Rural Economic System
Rethinking on Solving the “Three Rural” Issues
More Explorations on the Path of Agricultural Modernization with Chinese Characteristics
14.3 “Three Rural” Issues in the New Era of China’s Market-Oriented Economic Reform
The Proposition and Solution of the New “Three Rural” Issues in the New Period
Theoretical Exploration of Building the New Socialist Countryside
The Rural Revitalization Strategy—the Program for Solving the “Three Rural” Issues in the New Period
References
15 The Main Progress and Innovation of Regional Economic Theory Research
15.1 On the Research Object of Regional Economics
15.2 On the Regional Economic Development Strategy
The Stage of Unbalanced Development with Accelerated Development of Coastal Areas
The Stage of Regional Unbalanced and Coordinated Development
The Stage of Regional Coordinated Development with the Scientific Outlook on Development
15.3 The Debate on the Path of Urban Development in China
15.4 The Innovation of Regional Economic Development Strategy in China
A New Start with the Collaborative Development of Beijing-Tianjin-Hebei
The Promotion of the Development of the Yangtze River Economic Belt
The Proposition and Promotion of the Belt and Road Initiative
The Adherence to Targeted Poverty Alleviation and Targeted Poverty Elimination
The Promotion of the Formation of Main Functional Areas
Urbanization in the New Situation
References
16 Exploration and Development of Natural Resource Economics
16.1 The Origin of Natural Resource Economics
Theoretical Retrospect of Natural Resources Economics
The Development of Western Natural Resource Economics
Self-development and Exploration of Natural Resource Economics in China
16.2 The Development of the Discipline System of Natural Resource Economics in China
The Research Object of the Discipline
Major Research Methods
The Relationship Between the Discipline of Natural Resource Economics and Other Disciplines
The Main Characteristics of Discipline Development
16.3 Main Branches of Natural Resource Economics
Energy: Research on Renewable Energy
Water Resources: An Innovative Management Mechanism of River Leadership System
Land Resources: The Positive Role of Main Functional Areas
Climate Change: A Low Carbon Economy Perspective
16.4 Important Research Fields of Natural Resource Economics
Resource Valuation and Pricing
Externality and Circular Economy
Resource Curse and “Dutch Disease”
The Transformation of Resource-Based Cities
The Main Achievements of Natural Resource Economics in the Past 40 Years
References
17 The Transformation of Mode of Economic Growth and the Structural Reform of Supply-Side
17.1 The Policy Implementation of the Transformation of Mode of Economic Growth in China
Transformation of Economic Growth Mode Proposed in the Ninth Five Year Plan
The Transformation of the Economic Development Mode
The Structural Reform of the Supply-Side
17.2 The Research Scheme of the Transformation of Mode of Economic Growth
Research on the Mode of Economic Growth in the 1990s
The Transformation of Economic Development Mode at the Beginning of the Twenty-First Century
Supply-Side Structural Reform and Transformation of Economic Growth Mode
17.3 Some Comments and Prospects
References
18 The Development and Review of the Opening Up Theory
18.1 The Foreign Trade Theory
The Role of Foreign Trade
The Theoretical Basis of Foreign Trade
The Development Strategy of Foreign Trade
Discussion on Reform of Foreign Trade System
Discussion of International Trade Friction
18.2 Theories on Foreign Investment
The Guiding Ideology of Introducing Foreign Capital
Basic Principles and Strategies for Using Foreign Capital
The Role of Introducing Foreign Capital
Introducing Foreign Capital and National Economic Security
18.3 Foreign Exchange Theory
Should the RMB Exchange Rate System be a Single Exchange Rate System or a Dual Exchange Rate System?
Determination of RMB Exchange Rate Level
How to Reform Our Country’s Exchange Rate System?
Foreign Exchange Reserves
18.4 The Regional Opening Theory
The Economic Nature of Special Economic Zones
Who Earns Whose Money?
The Regional Opening Strategy
The Western Development, the Revitalization of the Northeast Old Industrial Base and the Rise of Central China
The Belt and Road Initiative
Regional Opening and Industrial Agglomeration
18.5 On the Construction of Foreign Economic and Legal System
18.6 China’s Positive Progress in Opening Up to the Outside World Since Its Accession to the WTO
Fulfilling WTO Commitments and Complying with International Rules
Promoting Self-development and Boosting the World Economy
Further Deepening Reform and Expanding Opening-Up
18.7 A Brief Conclusion
References
19 The Construction of Socialist Political Economics with Chinese Characteristics
19.1 The Socialist Political Economics with Chinese Characteristics Is an Important Part of the Theoretical System of Socialism with Chinese Characteristics
19.2 The Mature Socialist Political Economics with Chinese Characteristics Originates from Mature Socialist Economic System with Chinese Characteristics and Basic Realization of Modernization
19.3 Seeking the Main Line of Socialist Political Economics with Chinese Characteristics
19.4 Exploring the Basic Laws of Socialist Economy with Chinese Characteristics
References
Postscript
References