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CHINA the race to market


Keywords Chapter Five: Feeling the Stones as You Cross the River (Part One)

Chapter One: China's Curse: To Live in Exciting Times
Chapter Two: China and the US: Ineluctable Partners or Rivals?
Chapter Three: The land of the rising dragon: China's Economic Growth
Chapter Four: Riding the Tiger: China's Economic Policy Reform
Chapter Five: Chapter Five: Feeling the Stones as You Cross the River (Part One)
Chapter Six: Applying the Dracula Principle: China joins the WTO
Chapter Seven: Keeping it in the Family: Corporate reform in China
Chapter Eight: Getting China Right: The multi-national experience
Chapter Nine: China in the Twenty-First Century
Tables, Figures and Abbreviations
Author's Biography and Photograph
Jacket Cover and selected Reviews
Chinese business links, Google, Yahoo, Author's Blog

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Chapter 5 (Part One)   >

Chapter Five: Part One

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Feeling the Stones as You Cross the River

The party-state is a relic of the past century, not a herald for the next. Since the events of May-June 1989 on Tienanmen Square, China’s party-state has entered an implicit pact with the population: a rough and tough politics carries on within its precincts, but people enjoy much greater freedom than before. The problem is that the communist dynasty can no longer give a satisfactory response to the fundamental political question: By what right do you rule?

Definitely, it can no longer answer with any credibility that it rules on behalf of workers and peasants. Yet the genie of market reforms is out of the bottle, and its twin, the genie of political reform or revolution, is struggling to escape. Either regime reformers lead the country through market-leninism to market-democracy,or economic policy becomes impaled on an untenable status quo. That is when the opportunity opens for revolution from below,with the regime cast in the role of the Romanian dictator Ceausescu and his wife, acclaimed one moment by the crowd, and killed the next.

Let us follow the political transformation path sketched in the
previous chapter, noting some reasons why China’s leadership has been on the ideological defensive since 1989. We can then look at the dynamics of revolution from below, some of the regime’s key political features, and assess the path that China’s market-leninists have yet to tread.

Without such an assessment, corporate operations in China will be flying blind. The reason is simple: the essence of business is to have to deal with a future where risk and reward lie but  about which we know little. This chapter will isolate some central features of what we know, and do not know about China in the coming years. 

 

Chapter Five (Part Two)

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Chapter Five (Part Three)

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Chapter Five (Part Four)

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Chapter Five (Part Five)

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Chapter Five (Part Six)

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