Authoritarianism not key to China’s economic success
People walk outside a soon to open store in Beijing, China, 18 November 2011. The Chinese government has played an important role in promoting the country's economic growth, but the root of this contribution is not in authoritarianism. The Chinese economy is still growing strong despite it growing at a slightly slower pace as a result of policies put in place to balance the country's economic growth while combating rising inflation. (Photo: AAP)

Author: Yao Yang, Peking University

International observers frequently link China’s economic success to authoritarianism.

And when it comes to the comparison between China and Western countries, the issue is often framed by the contrast between the Beijing Consensus on the role of government intervention and the Washington Consensus on the role of the free market. Read more…

China’s current account surplus and inflation
Piles of containers at Waigaoqiao Container Port are seen March 3, 2009 in Shanghai, China. (Photo: AAP)

Author: Yang Yao, Peking University

China’s exports have resumed their robust growth since last year. The World Bank predicts a 3.5 per cent growth rate for the world economy this year, and most analysts also predict that the US economy will grow at a similar rate.

As a result, external demand for China’s exports will be strong. Read more…

China’s export-led growth model
A general view of Yangshan deep-water port in Shanghai, China. (Photo: AAP)

Author: Yang Yao, Peking University

China’s export-led growth is rooted in a double transition of structural change and demographic transition. Accession to the WTO has allowed China to fully integrate into the world system and capture the gains of its comparative advantage in abundant labour supply.

The double transition will take 10 to 15 years to finish. Over this period, China is likely to continue its fast export-led growth. Read more…

China’s growing pains, globalisation and adjustment
This March 17, 2010 illustration in Beijing shows China's 100 Yuan, or Renminbi, notes, the largest denomination in Chinese currency. (Photo: Frederic J. Brown/AFP/Getty Images)

Author: Yang Yao, Peking University

The fall of the Berlin wall in 1989 marked a new era of globalisation. Unlike previous eras, the surge of free trade and openness is characterised by an all encompassing division of labour, extending even into traditionally non-tradable services. The global system requires each country to position itself in the international value chain.

The most phenomenal feature of this global era is the economic ascent of China. Although China’s per-capita income is only one twelfth of the United States’, the rise of China is already sending shock waves throughout the world. Read more…