H. Hendrischke - The Political Economy of Chinas Provinces: Competitive and Comparative Advantage

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The Political Economy of Chinas Provinces

The Political Economy of Chinas Provinces challenges the notion of a centralised and unified China, and outlines how provinces are taking on new economic and political roles, forced upon them by decentralisation. Although central leadership in Beijing retains the overall initiative, decision-making powers for major policies are shifting to the provinces. The provinces are becoming economic and political agents with their own economic/social agendas, and distinct political and cultural identities.

One of the main tenets of this volume is that Chinese provinces in reform cannot be easily subsumed under larger policy frameworks such as the coastalinland dichotomy or major economic regions. Instead, in this groundbreaking volume, the provinces have been analysed with a view to their variations in terms of geography, competitive advantage, economic priority, demand from the centre, political ideology and cultural policy as determinants of emerging provincial identities. These determinants provide more subtle insights into the development of individual provinces as well as their potential for interregional interaction and inter-provincial competition. The issue of provincial identities, as it emerges from this approach, is a complex one which includes economic strategies, political ideology, social policies, cultural elements, and can be closely linked with local tradition stretching back decades or even centuries.

On the basis of seven provincial case-studies, the book charts different provincial paths of economic and political development, and analyses how individual provinces use their comparative and competitive advantage to formulate strategies in inter-provincial competition. This is a radical new approach which contests the idea that it is safe to regard what happens in one province as representative for the whole country.

Hans Hendrischke is Head of the Department of Chinese and Indonesian Studies at the University of New South Wales. Feng Chongyi is Senior Lecturer in Chinese Studies at the University of Technology, Sydney.

The Political Economy of Chinas Provinces

Comparative and competitive advantage

Edited by Hans Hendrischke and Feng Chongyi

London and New York

First published 1999
by Routledge
11 New Fetter Lane, London EC4P 4EE

Simultaneously published in the USA and Canada
by Routledge
29 West 35th Street, New York, NY 10001

Routledge is an imprint of the Taylor & Francis Group

1999 Hans Hendrischke and Feng Chongyi
individual chapters, the contributors

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library

Library of Congress Cataloging in Publication Data
The Political Economy of China's Provinces: Comparative and
competitive advantage / edited by Hans Hendrischke and Feng Chongyi.
p. cm.
Includes bibliographical references and index.
1. China Economic conditions 1976 2. China Economic
policy 19763. State governments China. 4. Central local government relations China. 5. Decentralisation in government China. 6. China Politics and government 1976 I. Hendrischke, Hans J. II. Feng, Chongyi
HC427.92.P64 1999
338.951dc21 9831541
CIP

ISBN 0415207762 (pbk)
ISBN 0415207754 (hbk)
ISBN 0203014219 Master ebook ISBN
ISBN 020312877X (Glassbook Format)

Contents

Hans Hendrischke

Tim Oakes

Andrew Watson, Yang Xueyi and Jiao Xingguo

J. Bruce Jacobs

Zhao Ling Yun

Hans Hendrischke

David S. G. Goodman

Feng Chongyi

Figures

Maps

Tables

Determinants of competitive advantage for Chinese provinces

Output of major industrial products by provinces with an above 10% share light and consumer industries, 1995 (%)

Output of major industrial products by provinces with an above 10% share machinery/transport equipment, 1995 (%)

Output of major industrial products by provinces with an above 10% share heavy industries, 1995 (%)

Economic, political and cultural features of Chinese provinces

Guizhou: shares of industrial and agricultural output, rural GMP and farmland,19801992(%)

Guizhou: grain output and productivity

Guizhou: demographic characteristics

China: central and local shares of state expenditure,19551994(%)

Guizhou: total state sector investments, 19501990 (million yuan)

The regions of Shaanxi Province, 1994

Budget income and expenditure, 19781994 (million yuan)

Shaanxi prefectural economic development levels, 19941995

Energy taxes in selected regions

Administrative structure of Jiangsu prefectural municipalities, 19831996, 1996

Per capita national income

Non-agricultural population, 1995

GDP by sector, 1995 (%)

Industrial output by ownership, 1995 (%)

Per capita GDP (RMB yuan) in selected provincial-level units, 1994

Growth rates of Jiangsu GDP, 19721995

Indicators of internationalisation of Jiangsu economy (in US$ million)

Wealth and poverty in Jiangsu Province, 1995

Jiangsu contributions to central fiscal revenues, 19491985

A comparison of Sunans fiscal situation with that of some Chinese cities

Hubeis position in Chinas economy, 1980

Hubeis industrial output value by ownership, 19801995 (%)

Economic growth of Hubei, 19531995: average annual growth rates (%)

Hubeis ranking position among all provinces: selected indicators

Annual growth rate of total social output of Hubei, selected coastal provinces and national average, 19791990 (%)

Obsolescence of Hubeis factories by the end of the 1980s

Change of the structure of employment (000s)

Indexes of consumption of non-agricultural and agricultural populations (1978 = 100)

Wage levels of workers in different sectors (yuan per capita)

Directions of migration in Hubei, July 1985July 1990 (%)

Reasons for migration in Hubei (%)

Level and speed of urbanisation in the newly established county-level cities of Hubei Province, 19821990 (%)

Tianjins 1988 economic indicators in national comparison (%)

Tianjins 1995 GVIO by ownership (%)

Number and GVIO of local and central SOEs in Tianjin, 19941995

Tianjins GVIO by ownership for enterprises above township level at constant 1980 prices (%)

Gross output value and industrial output value of the town and village enterprises in Jiangxi and neighbouring provinces, 1987

Average annual growth rate of major economic items in Jiangxi and China, 19911995 (%)

GDP and GVIO per capita of prefectural-level units in Jiangxi, 1994

Preface

This volume is part of a project to explore the complexities of Chinas provinces under reform in their geographical, economic, political and cultural diversity. The project

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