China Policy Institute Blog

Taiwan’s Unresolved Vision of Globalization

Written by Erik Tollefson. The current protests in Taiwan can plausibly be seen as the concatenation of several issues: 1) a crisis of democratic governance; 2) an extant political struggle between the ruling and opposition party; 3) an unsettled economic vision of the nation’s future. Copious ink has (rightly) been spilt on the myriad dimensions …

Pursuing mutually incompatible goals: Resilient SOEs, Leading Small Group, and the Market

Written by Yukyung Yeo. The long-anticipated third plenum of the 18th Central Committee closed with two ambitious goals to achieve. According to the plenum communiqué, Chinese leaders once again desire to deepen reforms toward market-oriented economy, yet under the predominant status of SOEs in the market. A “Leading Small Group for Deepening Reform” (shenhua gaige lingdao xiaozu) …

China Continues Its Grand Experiment

Written by Zhengxu Wang. The Chinese Communist Party’s Central Committee closed its Third Plenum on Tuesday, an event eagerly anticipated by the public and press. Right before it convened, the party’s propaganda outlets had played up the expectation that major policy breakthroughs would come from the gathering. Even Xi Jinping, the party’s general secretary and …

What next for the Dollar and RMB? Seeking Clues in the US and China’s Past

Written by Niv Horesh. London’s grooming as the launch-pad of the RMB, China’s currency, into becoming the next global reserve currency may merely be on the drawing board. Yet, coupled with the recent fiscal shutdown in the US, some insecurity about the long-term future of the US$ could perhaps be felt for the first time …

Xi Jinping’s Anti-corruption Campaign and the Third Plenum

Written by Andrew Hall Wedeman. A year ago, Xi Jinping assumed the office of General Secretary of the Communist Party of China (CCP) in the wake of the most serious corruption scandal since 2006 when Shanghai Municipal Party Secretary Chen Liangyu was caught diverting upwards of Y40 billion (US$4.8 billion) from the municipal pension fund …

The Third Plenum: The next bold step

Written by David S. G. Goodman. The recently-concluded Third Plenum of the 18th Central Committee of the Chinese Communist Party  has been regarded outside China as failing to deliver on the economic (and possibly even political) reforms regarded as being needed to sustain economic growth. This judgement may prove to be correct, if perhaps premature …

Chinese Investment in Taiwan: Challenge or Opportunity for Taiwan’s Industrial Development?

Written by Chun-Yi Lee. Almost three decades have passed since the lifting of martial law, effectively the starting point of Taiwanese investment in China. Most Taiwanese businessmen (Taishang) in China now consider the golden era that privileged Taiwanese capital to be over, as the Chinese market opened up to global capital from diverse sources. Far from …

China’s incremental multilateralism: Toward a multi-polar world

Written by Zhengxu Wang. There is a growing consensus that China is willing to join the existing world system by accepting international rules and institutions. It is rising into, instead of bringing changes, to the existing system. This appears to be one major element of China’s “grand strategy”, rising into the existing world system instead …

Can China resolve its local government debts?

Written by Lina Song. In July 2011, I argued in a debate published in the New York Times that China’s local government debts were a ticking time bomb. At the time, China’s National Audit Office reported that 36 selected cities each owed an average of $174 billion. By comparison, Detroit was forced to apply for …

Democracy, Property Rights and China

Written by Niv Horesh. In the early 20th century, Max Weber’s influential theories led Western scholars of both leftist and conservative leanings to argue that the spread of capitalism and “bourgeois” democracy in the 17th century had been driven, in the face of nobility resistance, by the growth of autonomous professional elites in Western European …