Understanding China, One Blog at a Time

An American in China

‘Red-economics’ Chinese Economic Policies

Posted by w_thames_the_d on September 8, 2011


I went to mylaowai.com and randomly clicked on a date and link and of course came up with a gem, part of which I will now share with you…

from here
Economics from Mao to Hu
Mao Zedong built a China designed to be self-sufficient and massively redundant. Every province, every city, every factory was supposed to be a self-contained unit, making the country capable of weathering nearly any military attack. Deng Xiaoping didn’t get rid of these redundancies when he opened the economy to foreign investment. Instead, he and his successors encouraged local officials to work to attract foreign investment and technology so as to raise China’s economic standard more rapidly. By the time Jiang Zemin was in power it had become clear that the regionally and locally driven economic policies threatened to throw China back into its old cycle of decentralization — and, ultimately, competing centers of power. Attempts by Jiang to correct this through the Go West program, for example, came to naught after meeting massive resistance in the wealthy c oastal provinces. The central government accordingly backed off, shifting its attention to reclaiming centralized authority over the military.
Hu Jintao has sought once again to try to address the problem of the concentration of economic power in China’s coastal provinces and cities through his Harmonious Society initiative. The idea is to redistribute wealth and economic power, regain central authority over the economy, and at the same time reduce redundancies and inefficiencies in the Chinese economy. With minimal external interference, ”

continue here
http://mylaowai.com/2008/07/

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