China And Globalization Midterm

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Hukou

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Household registration system; system of locking people in different social classes into their given living community and inhibiting migration. The problem, it creates and promotes social classes

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Danwie

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Work Unit: "Full Service" employer including subsidized housing, healthcare, education for children, and ration coupons

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Mass Campaigns

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Local party officials orchestrated attacks on party decided targets. Mao led three of these campaigns on industrial growth, rural growth, and revolutionary spirit

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Hundred Flowers/Anti-Rightist Campaign

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Mao's first Mass campaign (1956-57)

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Great Leap Forward

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Mao's second Mass Campaign designed to make China industrial equal to the West in less than 15-years. Resulted in famine. (1958)

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Great Proletarian Cultural Revolution

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Sparked by rising inequality, fading revolutionary spirit, and party bureaucrats. A new elite emerged within the Party. During the revolution Red Guard Army members and intellectuals suffered. Characterized by chaos (Luan). (1966-76)

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Luan (Chaos)

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Legacy of the Cultural Revolution. The notion that mass participation can lead to Luan and therefore democracy is seen as chaos. Still dominates Chinese political thought and leaders avoid democratization

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Voluntarism

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The principle of relying on voluntary action (especially in terms of involvement of voluntary orgs. in social welfare)

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Maoism

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A political theory which is derived from the teachings of the Chinese political leader, Mao Zedong. Similar to Marxism, Leninism, it is the process of creating the Chinese revolutionary state and in the process of nation building.

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The Four Sinifications of Marxism

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1. Urban Workers -> Rural Peasants

2. Material Conditions (needed capitalism) -> Volunteerism of the masses

3. Nationalism -> Anti-Foreign Imperialism

4. Faith in the Party -> Also in the masses

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Egalitarianism

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In rural areas people are poor, but everyone around them is equally poor. Men/women are equals. But on the other hand party leaders live austere lives and urban life > Rural Life. In direct contrast to Confucian Hierarchy.

A Maoist Value

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Revolutionary Spirit

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"It is right to rebel" which is in direct contrast with the traditional Chinese value of respecting tradition and elders.

A Maoist Value

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Elimination of Classes

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Bureaucracy provides rational procedures on a equal footing for all people, disperse power, highly specified departments. Mao would rather have people that are "red" (politically motivated) than people who are expertly trained

A Maoist Value

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Opium Wars

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GB grows opium in India, sells to China. Chinese become addicted to opium. Emperor gets pissed and embargos opium. GB goes to war. Chinese are embarrassed by how bad they lose. GB forces China to buy its opium and takes Macau and Hong Kong which have since been turned over the China in 1994.

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1949

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CCP establishes the PRC.

KMT (nationalist party) flees to Taiwan

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Sino-Soviet Differences

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Soviet leader (Khrushchev) believed in slow, expertly guided, development. Mao used the Great Leap Forward and revolutionary spirit. This lead to the split of the two largest communist states in 1960

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Modernization Theory

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Walt Rostow's 5 Stages of Growth: Low productivity through agriculture and familial ties to urbanize cities. Fatalism- no desire to improve leads to saving and investing. Hierarchy limits social mobility to more opportunities for education. Political power distributed to large land owners. Move to distribution of political power to businesses (to keep businesses, the most democratized pt of China, from going against the party)

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Class Ecploitation

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The process by which the bourgeoisie maintains control over the proletariat, by exploiting them. Mao and his communist regime sought to end class exploitation by creating a system where the rural and lower class were given more power, keeping them out from underneath the thumb of the upper elites.

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"Takeoff"

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3rd Stage of Walt Rostow's Modernization Theory: Occurs when sector-led growth becomes common and society is driven more by economic processes than traditions

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Deng Xiaoping

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Leader of China (1978-1992) who came to power directly after Mao. Born a peasant, he studied in Fra in the 20s. Believed in combining aspects of both communism and capitalism. Wanted to ensure that a charismatic leader like Mao never came to power again. Stabilize CCP and bureaucracy

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Factions [Elites v. Populists]

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Elitist Faction tends to represent business interests, including entrepreneurs and the rising middle class of China's affluent coastal regions. While the Populist Faction is a coalition that tends to promote policies such as eliminating agricultural taxes, developing inland cities and promoting affordable housing.

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State-Owned Enterprises

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entity that undertakes commercial activity while being owned by the government. These types of enterprises often are hugely inefficient and employ many more workers than they need to as a result of a soft budget constraint. 1980s began a shift in China away from state owned enterprises and many of them were privatized leading to massive layoffs and social tensions, however still around 35% of business activity in China is done by companies which are majority owned by the state.

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Household Responsibility System

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Deng Xiaoping’s reform to decollectivize farmland; began in 1979 when farmers broke up communal land on their own; by 1982 the CCP enforced a standardized version of decollectivization- allowed farmers to make their own choices and engage in sideline production, tolerated private markets; state subsidized agriculture to keep price of grain up for farmers and down for urban consumers- these subsidies ultimately hurt rural China.

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Tiananmen Movement

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1989 student led protest against the CCP. Students and urban citizens protested against nepotism (giving jobs or political favors to friends/relatives), and economic issues including inflation. Protesters sought more democratic political rights (but not real democracy). 3,000 protesters were killed by the communist party. The Tiananmen Square Massacre remains a banned topic in China and any mention of it in media, literature, or art is subject to censorship.

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Developmental State

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A developmental state is characterized by having strong state intervention, as well as extensive regulation and planning (Japan, Hong Kong, South Korea). Bureaucrats make all industrial decisions and the state directs major investment. “Developmental State” model- 1. mobilize capital for investment. 2. create favorable context for development (ex. export oriented industrialization). 3. State chooses which industries to invest in and protect.

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Soft Privatization

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One of China’s approaches to aid during the 1990’s, particularly in Africa. China rescues old aid projects and are “responsible to the end” Chinese companies rescued “some of their former aid projects by leasing them - a form of soft privatization. Like a rental agreement, a lease turns over the property to an outside entrepreneur in exchange for the payment of a percentage, royalty, or rent of some kind. The entrepreneur does not own the property, but uses it like an owner.”

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Great Economic Trade Strategy (GETS)

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1995 - Focused on competition, efficiency and market oriented principles in the use of public money, including foreign aid. Many Chinese owned corporations were pushed to become more independent and less reliant on state support and subsidies making them more responsible for their own profits and losses

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Neocolonialism

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System by which wealthier countries dominate poorer countries by means of finance trapping them in a cycle of debt; poorer countries must submit to wealthier countries demands in terms of trade (economic control)

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Neoliberalism

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“get prices right” - neoliberal ideology. Structural Adjustment Programs (SAPs) 1980’s. SAPs were meant to make a stagnant and unproductive economy more efficient and stable. SAP’s entailed a state to cut state spending on things like education and subsidies, and liberalize its market

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China Africa Development Fund

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A policy bank that funded a new type of aid program. The mandate: combine aid to Africa, mutual cooperation, and trade together. This was part of China’s launch into making aid profitable or “mutually beneficial.” The scale of investment was massive and the emphasis was on equity investments, not loans, making China more involved with +greater risks and greater payoff. It had three kinds of initiatives: joint-venture investments in manufacturing and agriculture, assembly factories, and exploration and investment in mineral and forest resources

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Populist Authoritarianism

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Hu Jintao’s approach to Chinese politics under which the CCP has found ways to strengthen its governing capacity while avoiding democratization; CCP focuses on satisfying economic demand; they make the middle class fear democracy by making them think that the working class may take their middle class status away

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Censorship

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Chinese government not allowing the citizens of the country access to information that it deems sensitive or inflammatory, no access to tibet, tianamen square, dissidence, subversive religions. helped by american countries trying to get footholds in china. way to maintain poor working conditions

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Ungrounded Empires

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Cheek discusses ‘ungrounded empires’, which are Chinese communities of laborers and merchants who live and work outside of China while keeping in contact with their hometowns (by traveling back and forth and sending remittances); These communities have been used by Chinese governments (from the Qing Dynasty-now) ‘to help China survive and prosper’; these ungrounded empires prove that ‘China has had long-term connections to and interactions with the economy for many centuries- Globalization is not new… for China.

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Chinese Exclusion Act

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Chinese exclusion act was a quota on Chinese immigrants placed in America. Eventually repealed in 1940’s but actual quota was 105 chinese allowed per year. Important because it only allowed chinese immigrants jobs with low income/laborious

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Market Authoritarianism

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market economy with authoritarian political system. dictatorship is strong enough to suppress popular demands and invest resources into development

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Beijing Consensus

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the political and economic views of the PRC. Began after the death of Mao. A major part of China’s eightfold economic growth in gross national product; Characterized by ‘illiberal capitalism’, resource-based development, cheap labor, purposely undervalued currency, state subsidies, state directed capitalism

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Institutional Outsourcing

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domestic independent restructuring to overseas cos. (china is rule taker and has no autonomous industry, all industry comes from outside companies: apple, nike, procte and gamble). outsourcing politics (look to world). outsourcing rules for cross-border transactions -currency, trade rules. outsourcing governance for “national champion” companies. Important because China is dependent and open on world to determine how it runs it’s businesses.

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Modularity

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Production broken down into smaller/more uniform steps where separate steps of an industry are broken up so that individual, specialized, firms can take each part. Makes China a rule taker, not maker because foreign countries dictate the spec.s of their production.

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Devericalization

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formerly verticalized production is now modular. verticalized companies = control production and distribution processes in one firm. Instead of having all the productions steps in one company, it is now specialized and spread out. Example- program in seattle, parts from taiwan, manufacturing in China.

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China's Third World

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Rural people who's status is tied to what family they hail from and who's focus is welfare with begrudging attitudes towards the CCP

One of China's Three Worlds

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Socialist China

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Urban people who's status is tied to their position in the bureaucratic hierarchy who's focus is on obtaining ties to CCP on which they are dependent for status

The middle of China's Three Worlds

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New Industrializing China

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Big city mice living primarily on the coast who's status is tied to the amount of $ they have and who's focus is on market success. They provide social and political stability to China.

The top tier of China's Three Worlds