China Today: Economic and Cultural Changes

Beijing Jeep: “Conclusion” and “Epilogue”

Compare the “Conclusion” (1st ed., 1989) and “Epilogue” (2nd ed., 1996).

Explain why Jim Mann's ideas bout China appear to have changed radically between 1989 and 1996.

Why was he so pessimistic about business prospects in 1989?

What changes began to occur in the 1990s?

What lessons should IS students take from economic and social changes in China in recent decades?

1989 Democracy Movement

April 17-June 4, 1989

Student goals

Political reform

Pretext

Hu Yaobang, d. April 15, 1989

Memorial 4/17

Month of gridlock in central government

Gorbachev visit

Factionalism

Martial Law declared, 5/20

Beijing garrison troops ineffectual

Provincial troops move on Beijing, 6/3-6/4

Aftermath of 1989

✓Continuity in formal and informal political systems

Communist Party authoritarian rule

Deng Xiaoping fades from scene, d. 1997

Secretary-Generals of CCP

*Zhao Ziyang, 1987-1989, d. Jan. 2005

Jiang Zemin, 1989-2003

Chairman of Military Affairs Commission, 1993-2005

Xi Jinping, 2013-present

Chairman of Military Affairs Commission, 2013-present

Premier

*Zhu Rongji, 1998-2003

Economic Change & Success

GDP (2012 est.)

$12.3 trillion

2nd Largest

US is # 1 at $15.3 trillion (est.)

Average annual growth of GDP

11.1% from 1990 to 1998

• 2.9% in US during same period

11.4% in 2007

• U.S. 2.2%

6.7% (2016 est.)

• U.S. 1.6% (est.)

World Rankings in Annual GDP Growth Rate, 2016

1. Turks & Caicos 11.2%

2. Nauru 10.4%

3. Iraq 10.10%

14. China 6.7%

86. Sweden 3.3%

149. USA 1.6%

169. Denmark 1.1%

Data Source: CIA World Factbook

Economic Restructuring 1990s

Foreign investment in coastal cities

New export oriented industries

"Asianization"

Taiwan and S. Korean investors

Foxconn manufactures to specifications of American computer firms

Opening of Chinese markets

Goods

Foreign exchange

*State-owned enterprises (SOE)

Privatization or bankruptcy of some

Remaining key SOEs "break the iron rice bowl"

✓*Zhu Rongji

Per Capita GDP

1998 China is ranked 149th, $750

US is ranked 10th, $29,340 2007

2012 (CIA World Factbook data)

China is ranked 124 $9,300 (est.)

US is ranked 14th, $50,700 (est.)

Why has per capita GDP improved but remained relatively low?

Total Population 1.3 Billion

Labor force structure

Quarter of population still in farming

Comparative workforce structure (%)

0.25 acres agricultural land/capita in 1982

2.1 acres in US

80-120 million rural migrants!!

Economic Restructuring & New Urban Cultural Norms

New types of urban cultural conditioning

Workplace culture

Old: Unmotivated

S.O.E. w/ urban workers

"Iron rice bowl"

New: Hard-working

"Broken iron rice bowl"

Rural migrants bring village culture to city