INTA 3230 Lecture Notes - Lecture 1: Deng Xiaoping, Jiang Zemin, Zhou Enlai

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Final study guide (Government and Politics of China)
Contract-based rights----- Property right law 2007)
Urban: land owned by state
Rural: land owned by collective (local state)
They had the right to use the land, drive profits, and transfer rights of land
Problems in legal system: Connection (Guanxi), corruption, and local protectionism
Judicial issue:
Corruption (either through bribery or trading connection (guanxi)
Local protectionism (Judges cooperate with local officials and state related
enterprises because they are dependent on them for their funds)
Gaps in China’s legal system:
Implementation gap
Not considering Chinese tradition
Disparities among different parts of the country (you see rule of law in more
developed areas)
*Legitimacy of CCP now depends on economic growth continuation
*Threat to PRC: inequalities and decrease of economic growth
Political economy:
Mao’s era:
o Land reform redistribution
o Collectivization (they closed the private grain market)
o People’s commune
o Central planned economy (imported from the Soviet Union) good for
only specific project and specific time (railroad, nuclear weapon, etc.)
o Great leap forward mass mobilization and using people’s effort to
improve industrial products with the goal of establishing China’s
order (China rule the whole world)---Great death (Liu Shaoqi-Deng
Post Mao’s era
o Shift from politics and ideology to economic growth and emphasize on
people’s livelihood
o Economic reform
o Opening (US diplomatic relationship- WTO- trade with other
o Capitalism (shift from central planned economy to a mixture of
socialism and Capitalism)
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o Coastal development strategy (opened all coastal China to global
o Largest exporter (Processing export)- assembling products that their
parts were manufactured in other countries- cheap labor
o Corporatism (corporate everything into one unit)
o Shift from agriculture to light industry (textile) and then to industry
o Modernization through imitation and import (No innovation)
o Rural reform
People’s communes were replaced with household base
farming system (use right- they had to pay tax for use, but they
could decide about the crops, management of lands, etc.)
Higher price for rural products
Rapid rural industrialization (agriculture to industry)
*Collapse of Soviet Union in 1991 and Tiananmen incident in Beijing were a threat
to CCP’s survival. Deng Xiaoping realized the threat and the solution to the threat
was economic growth
*Jiang Zemin: he lowered the bureaucrats, and private ownership
*China today: Many private sectors, but still state has a great influence on private
sectors. Key industries- oil, steel, shipping, aviation- are state monopolized. There is
no liberalization in banking, industrial or government sectors)
*China’s going out strategy:
Purchasing overseas mines, firms, and industries
Investment in over 120 countries (Top- U.S., Canada, Australia, Brazil)
Going to countries where Western countries do not have economic
relationship because of political reasons (Iran- Sudan)
*Being exporter makes China to be hungry for energy use (coal-oil)- Being exporter
of manufactures rather than service sector needs more energy use.
*China’s economic challenge:
Human and economic cost (pollution)
Widening the gap between rich and poor (threatens to social stability and
economic development)
Dependency on export (not reliable for a sustained economic growth)
More saving than spending (to grow the economy you need to spend more)
Rural system: (1 party secretary and 1 government head)
Town (lowest level of administrative level in the government)
Village- Not part of formal administrative level.
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Natural village (3-7 small groups). They have elected leaders, but to party
o Village committee
o Village leader (their responsibility: tax, family planning, fee
collection). Village leaders are accountable to he authorities above
them and have to implement their policies. They also look down at
villagers and their request (popular election)
One level down system: CCP organization department at next level up the
administrative hierarchy must approve appointment and promotion of leading
Grassroots democracy in villages:
Organic law: villagers elect 3-7 committee member and one leader in free
election and no party member interference
No party interference (accountability to villagers)
Buying vote
Rural resistance:
Rightful resistance (complain against local government, but they believe that
the national government is on their side)
Petitioning (costlymoney and time)
Lawsuit (it is not legal to sue the party though)
Urban (city) system: (1 party state and 1 mayor who Is called people’s
3 key elements of the CCP’s progress for urban areas:
Housing and transportation--- Danwei (work unit)--- Hukou
3 city levels:
Central---- province (Beijing, shanghai, Chongqing)
County (like rural)
Each level is accountable and is under jurisdiction of the level above. Each category
is different as far as resources, opportunities, and status
Migrants from rural to urban:
Young and looking for job
They face discrimination and bias- low pay jobs
Hukou (no legal to work or live in cities)
No subsidies and health care
Their children cannot enroll in school
Advantages: remittance they send home can fuel the housing industry in rural
areashaving a new perspective expanding their networks
Middle class is three categories:
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