Editorial

doi:10.1590/s0103-40141992000300001

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1992

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1992

The China Quarterly

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The 14th Party Congress heralded a victory for Deng Xiaoping's programme of rapid economic transformation accompanied by tight political control. His name and policies were lauded in Jiang Zemin's “Work Report” to the Congress and the theory of “socialism with Chinese characteristics” became the cornerstone of the revised Party Constitution. The overhaul of leading personnel has provided a clear Politburo majority in favour of the increasing marketization of China's economy. Thus, the Party has created perhaps one last chance to position itself at the forefront of reform rather than appearing as an antique body engaged in increasingly irrelevant ideological polemics.x Whether it will be able to ride this newly re-released tiger of economic reform will depend on its capacity to deal with the social and political consequences of its strategy, many of which will be unpredictable. In essence, the easy part of reform was completed in the 1980s and the difficult stage will now begin. Citizens will be hit as rents and pricesrise, and the state will have to offer employment or welfare to those who lose their jobs if enterprises are forced to become genuinely efficient. It will take a trustworthy, competent and imaginative leadership to sell this programme to the Chinese people, a task made even harder by the credibility gap that has widened enormously in recent years. The mandate for change is there, but whether it will be exploited effectively remains to be seen. Past experience suggests that despite the commitment to bold changes, the Party will slow down the pace of reform once it senses potential unrest.

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Foreign Investment and Economic Change in China

Kueh¹

1992

The China Quarterly

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Foreign direct investment (FDI) in China is the most dramatic manifestation of China's open-door policy. Together with continuous import and export expansion, FDI has increasingly exposed the Chinese economy to the western world during the past decade. There are, however, several differences between FDI and foreign trade in terms of their implications for the domestic economy. The most obvious is that FDI directly helps to relieve domestic capital supply bottlenecks and to promote employment and economic growth. By contrast, increased capital formation through imports of machinery and equipment must be financed by extra export earnings.

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Editorial

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Wirtschaftliche Interessen und subjektive Rechte

Wirtschaftliche Interessen und subjektive Rechte

The Fourteenth Party Congress: A Programme for Authoritarian Rule

Foreign Investment and Economic Change in China

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