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State and Market Tensions Throughout China’s Economic Reforms

Nicholas Borst ()

Chapter Chapter 2 in The Bird and the Cage, 2025, pp 7-72 from Springer

Abstract: Abstract This chapter examines the contentious relationship between market forces and the Communist Party’s efforts to retain control over China’s economy throughout its reform era. Challenging the conventional narrative of a clear ideological shift from Maoism to market liberalization, it instead depicts China’s reforms as a series of politically contentious, often reactive decisions. The chapter contends that many reforms originated at the grassroots level, driven by local governments and farmers rather than the central Party leadership in Beijing. Although the Party allowed selective economic liberalization, it carefully maintained control to prevent these reforms from undermining its authority. This enduring tension between state control and market forces defined Chinese economic policymaking during the first four decades of reform. The chapter underscores that the Party’s overarching objective has been national rejuvenation, with economic reforms serving as strategic tools toward that goal. This perspective offers a nuanced understanding of China’s economic evolution, highlighting the balance the Party maintains between leveraging market efficiencies and controlling the economy’s commanding heights.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-96-3997-7_2

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DOI: 10.1007/978-981-96-3997-7_2

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