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The Exit Option, Withdrawing from and Re-entering Global Capitalism: China under and after Mao

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Abstract

In recent years, the People’s Republic of China, like many underdeveloped countries, has sought to industrialize and to sell more of its manufactured products overseas. Once isolationist, China is now one of the world’s 10 largest trading nations, enjoying a surplus of nearly $25 billion dollars with the USA alone (which puts China second only to Japan in the size of its imbalance with Washington). And while the Western economies have registered recession or only mild economic growth rates, the Chinese economy seems to be on fire, recording an average growth of 10 per cent in the past decade. Attracting nearly $90 billion of FDI in the same period, China is poised to be the largest economy in the world by 2010 according to purchasing-power parity, a measure the World Bank uses to assess the real worth of the wealth of nations.

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Notes and References

  • The major sources for this chapter are Vivienne Shue, Peasant China in Transition: The Dynamics of Development toward Socialism, 1949–1956 (Berkeley: University of California Press, 1983) and

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  • Andrew Walder’s dissertation, ‘Work and Authority in Chinese Industry: State Socialism and the Institutional Culture of Dependency’ (University of Michigan, 1981).

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  • Essential background reading is Lucien Bianco, Origins of the Chinese Revolution, 1915–1949, trans. Muriel Bell (Stanford, Cal.: Stanford University Press, 1971) and

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  • William Hinton, Fanshen: A Documentary of Revolution in a Chinese Village (New York: Random House, 1966).

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  • The land reform is assessed by C K. Yang, Chinese Communist Society: The Family and the Village (Cambridge, Mass.: MIT Press, 1959).

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  • Another important work on the rural sector is Nicholas R. Lardy, Agriculture in China’s Modern Development (Cambridge: Cambridge University Press, 1983).

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  • The comparison of economic performance in 1952 and the prerevolutionary period appears in Xue Muqiao, China’s Socialist Economy (Beijing: Foreign Languages Press, 1981) p. 22.

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  • The data on income in the agricultural sector are drawn from Shue, Peasant China in Transition, p. 283; her explanations quoted here appear on p. 332. An excellent discussion of relations between the central authorities and local cadres may be found in Ezra Vogel, Canton under Communism: Programs and Politics in a Provincial Capital, 1949–1968 (Cambridge, Mass.: Harvard University Press, 1969).

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  • The incentive system is reviewed in Walder’s seminal study, ‘Work and Authority in Chinese Industry’, passim. The tale of Old Guo is told by Liang Heng and Judith Shapiro, Son of the Revolution (New York: Alfred A. Knopf, 1983) p. 184.

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© 1997 James H. Mittelman and Mustapha Kamal Pasha

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Mittelman, J.H., Pasha, M.K. (1997). The Exit Option, Withdrawing from and Re-entering Global Capitalism: China under and after Mao. In: Out from Underdevelopment Revisited. International Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-25183-4_7

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