Week 3- Understanding China, A Guide to China's Economy History and Political Culture

Which incidents in the 2000s heightened tensions between China, the U.S. and Japan?

(1) 2005 - japan refused to paint an objective picture of its actions in China in WWII → protests in shanghai and Beijing to protest Japanese goods (2) April 2001, a US reconnaissance plane collided with a Chinese fighter jet off the shore of Hainan Island, killing the Chinese pilot ○ The Chinese said the americans violated their airspace, US said it was international space (3) Accidental bombing of the Chinese embassy in Belgrade by NATO forces engaged in the war in Kosovo ○ 3 chinese citizens were killed

What is China doing in the South China Sea and why?

(1) The Chinese claim that the Spratly Islands chain is chinese territory while the Philippines, Vietnam, Malaysia, Brunei, and Taiwan are all making sovereign claims over them as well (2) Via the Law of the Sea Convention, China owns the islands and the 12-mile contiguous zone around each island, and 200 miles of exclusive economic zone around each island WHY: ○ China wants control of these islands for their offshore oil deposits, & bc they would give China control over fishing rights. Other countries want control over South China Sea bc it is a critical international maritime passage ○ China established outposts on some of these islands & their naval vessels have encountered other claimants. As a result, China proposed a policy of "joint exploitation first" and leave questions of sovereignty for later--unresolved issue

How does China benefit from the unpredictability of the North Korean leadership?

- The reunification of North and south korea would divert south korea's trade and investment potential EX: Instead of advocating for peace in the korean war, china has encouraged south korean investment in china (shandong province)

What did WTO membership mean for China?

1. Allows for a vehicle to aster its economic interests 2.Forum for conversations with Taiwan and ability to curb its buccaneering behavior 3. It meant that US congress would not have to review US-China relations every year, and the US would have normal trade relations with them. 4. Brought the requirement that Chinese banking system open up to foreign participation by 2007 (starting with CIti)

What issues complicate U.S.-Chinese economic relations? Do these concerns have merit?

1. Concerns of sovereignty and face from the Chinese government because of American criticisms 2. Difficult to find a better market for their exports or source of capital and technology 3. China's large trade surplus: US and china differ in the way they calculate this surplus 4. Chinas reluctance to let currency float on the open market - depressed yuan makes exports artificially cheap and encourages Americans to import great quantities 5.Undervalued currency + trade surplus has allowed them to amass extremely large reserves of foreign exchange

What did China develop?

Arithmetic

What were some problems of the state-owned enterprises?

Before reforms: actual wages were based on seniority; there was no relation between remuneration and performance. - SOEs were significantly overstaffed - because the tenure system was still in effect for workers hired before the reforms began, it was very difficult to downsize the workforce.

Explain the CCP's response to the 1989 protests in Tiananmen Square.

First attempted to quell the protests, eventually declaring martial law in Tiananmen Square, using troops with assault rifles and tanks to fire at the demonstrators and clear the square, dismissing Zhao's support for student protestors (killing an unknown amount, estimates range from 241 to 7,000)

What is the origin of the mutual defense treaty between the U.S. and Taiwan?

Outbreak of war on the Korean peninsula (Chinese Civil War) → US wanted to protect Nationalist forces on Taiwan against attack from the Communist regime on the mainland (as the US did not even recognize the gov. in Beijing) ○ The U.S. Seventh Fleet was ordered to begin patrolling the Taiwan Strait, and a mutual defense treaty was signed. ○ The treaty was a defense pact b/w the US & Taiwan to prevent the PRC from taking over Taiwan from 1955-1979 ○ After the war, US gives ~$2 billion in economic & military aid to Taiwan's postwar recovery.

How does Confucius' "paradigmatic relationship" influence Chinese civilization?

Paradigmatic relationship said: son must obey and respect father while father bestows upon son high morals and ethics Important Relationships: Influenced family, father and son, mother and daughter, siblings, marriages, and subject and ruler

What are the two avenues to which Chinese have turned to express political opinions?

Petitions: the party-state created a Bureau of Petitions under the Central Committee and the State Council offices for "letters and visits" modelled by the practice of petitioning the imperial gov to address grievances against local authorities in traditional China Protests: used when petitioning fails.

Mao Zedong's favorite past figure

Qinshi Huangdi.

Reds

Reds: Professionalism a trade-off with political correctness - must emphasize political loyalty

How did the change in tax policy by the Center strengthen control over provinces?

Taxes were redirected in the direction of the central govt (MOST IMPT) If taxes aren't collected, a local government might have to close its borders The central government has the power to harm the local gov if they do not pay their taxes

How does the U.S.-Japan joint defense agreement affect Chinese military policy?

The US and Japan are proposing theatre missile defense system to defend the US, Japan, Taiwan, and S Korea. → the Chinese are concerned by this Japan's potential military expansion serves as a rationale for the expansion of the PLA. If China's goal is to reduce the reemergence of japanese militarism , 2 steps are called for that the Chinese may find difficult to take: (1) US presence in East Asia must be actively encouraged (Japanese prevented from rearming, so long as US continues to serve as its shield) (2) China should not engage in anything construed as a military expansionism, since Japan would use this as a pretext for its own military buildup.

Describe the relationship between China and Russia.

● Sino-soviet hostility reached the point of armed conflict in 1969 and they did not begin reconstructing their relationship until the early 1980s (when Gorbachev visited, 1989) ● The two nations are constantly trying to get ahead of each other and read each others actions ● Russia is uncomfortable w/ Chinese entrepreneurs living & working in Siberia ● General stronger economic relationship

How did the post-WWII economy in Hong Kong develop?

(1) 1950s - commerce (free ports, China's main window to the economic world) (2) 1960s - Industrialization (low-end consumer goods àelectronics and appliances) (3) 1970s - labor and real estate costs rose industry moved to other east Asian countries money and banking in HK (2nd largest financial center in Asia after Tokyo) (4) 1980s→ HK is China's largest trading partner that it relies on for foreign trade; HK firms investing in joint ventures in Shenzhen & Guangdong Province.

On which four points does Starr suggest we reflect as consider how to bring about an improvement in China's "human rights record"?

(1) Assumptions about universality of views on law and human rights- our notion that they are appropriate for all societies to adopt, regardless of disjunction with other traditions and cultures. (2) Americans often measure real conditions abroad against idealized visions @ home- and seem blind to the violation of human rights at home (3) Asking China's leaders to allow dissidents freedom of movement and expression is a lot more complicated than one might think. China's leaders understand the weaknesses of their party- and political instability is threat (4) The importance the Chinese attach to the question of sovereignty. They interpret the history of their interaction with the outside world in the 19th century as painful. Now, China regards foreign comment on its handling of the civil and political rights of its citizens as a serious infringement.

What two factors have made Hong Kong the successful financial center it is today?

(1) Free flow of information ○ No censorship of content and adequate protection of data privacy; free press/ transparent information. ○ Free flow of information and transparency creates a free environment that attracts firms. (2) Careful adherence to the rule of law ○ Rights of free speech and assembly are protected under strictly followed constitution

Describe the three alternative energy sources and their impact on overall energy usage

(1) Natural gas currently supplies only about 4 percent of the country's energy needs, but as a clean burning fuel it is seen as a desirable alternative to the burning of coal. (2) nuclear power plants: ten additional thousand-megawatt power plants each year with a goal of doubling nuclear energy's share of electric power generation by the year 2020 (3) renewable energy sources, investing heavily in wind and solar power generation equipment- goal is to have five thousand megawatts of solar power installed and producing by the end of 2010, the equivalent of eight large coal-fired power plants

What three factors "destroyed" the balance between people and the environment?

(1) Rapid pop increase in 18th century; 5X increase but only 25% increase in cultivated land (2) Industrialization (3) China's industrialization was achieved under socialist reign: no one took responsibility for the land or represented its interests; no incentive to conserve use of water and energy b/c it was free

How did the 1989 Tiananmen massacre affect British plans for the handover?

(1) Rattled public confidence in HK - created anger and fear which politicized a large part of the population known for having little interest in politics (2) Large protests in HK, supported democratic movements by creating underground railroads for people looking for safe passage to the US and Europe (3) Founding of political parties - Democratic party (pro HK), Democratic Alliance for the Betterment and Progress of HK (DAB) (Pro-Beijing Businessmen) (4)Beijing saw HK now not as apolitical, but as a democratic state that threatened their political stability (5) Britain put sanctions on China after the massacre, but aided HK in economic expansion - This made china stall negotiations on every other issue, including capitalization for new airport

What are the PLA's two major sources of income not reported in the official budget?

(1) Sales of weapons to foreign purchasers ($2B annually) (2) Military-owned and operated factories and enterprises→ profited from the sale of civilian products produced in military-controlled factories

What three "elements" Mao legal system lingered, and when did they end?

(1) counterrevolution: served as the basis for the prosecution of political crimes (2) concept of thought reform: "reform through labor" or "labor reeducation" (most extreme was brainwashing) (3) absence of a presumption of innocence. The criminal who was brought to trial was presumed guilty

What solutions did the state create?

(1) created the National People's Congress of the Company Law in 1994 - Law provided the legal framework for the various forms of ownership introduced by the party-state - SOEs took on the legal status of corporations, and the corporations had a variety of ownership arrangements. (2) Another solution was divestiture: the state sells its interest in the enterprise to the employees or to outsiders in the form of equity shares (Divesture Plan adopted at 15th National Party Congress in 1997) (3) state took action to get rid of the inefficiencies in over-hiring in the state owned enterprises.

What were two major concerns of city dwellers?

(1) is unemployment: China's cities have as many as 30 million residents, or a quarter of their workforce, who are not fully employed and up to 150 million nonresidents who are competing with one another for short-term low-end jobs. (2) is space/overpopulation: China's cities contained only 18 percent of the country's population in 1978; today they contain 45 percent of the population. (3) inflation: The average rate of inflation during the first three decades of the People's Republic was just under 2 percent; retail prices rose only about 65 percent in thirty years. 1988 the retail price index increased by 18.5 percent, and even more for urban residents, and it continued to mount through early 1989. It was the issue of corruption that sent urban residents out in unprecedented numbers onto the streets (3) housing crisis (4) corruption

What two conflicting interpretations explain China's historical relationship with the environment?

(A) Chinese state in traditional times worked hard to preserve a delicate balance between human needs and natural resources. The central government took responsibility for mobilizing the labor needed to build and maintain a system of flood control and irrigation works, as well as a network of inland waterways. Generations of Chinese peasants perfected a system of farming that made maximal use of limited land and, by means of intensive recycling practices, preserved its fertility. There was very little profligacy in the Chinese people's use of natural resources. (B) Other historians question whether this delicate balance ever really existed- argue that this 'balance' was more a mask for the exploitation of nature to serve human ends

What does the Party find troubling about the growth of the Chinese legal profession?

- 20+ cases of lawyers arrested and prosecuted, tug of war between central and local authorities · Emergence of a sense of independent professionalism among Chinese lawyers who, in the past, saw themselves as no more than minor government bureaucrats · Party fears independent professionalism · More than 20 cases of lawyers arrested and prosecuted during course of work · Ex. Chen Guangchengà blind lawyer who defended rights of peasants and got arrested for crimes that would've been impossible - Despite their professed enthusiasm for establishing a rule of law in China, party-state leaders are determined to limit the independence of lawyers who practice politically delicate cases.

How have differences in landmasses impacted the population distribution of the people?

- 75% of the population lives on 15% of the landmass, which is mostly around the river basins which are very fertile, leading to extremely densely populated areas. - Western China is more sparsely populated (but still way more populated than our rural parts of the U.S.). - Concentration on the coasts

Why are laws approved by the party-state "intentionally vague"?

- American scholars think this is because of the Maoist habit of adapting experimental initiatives to diverse local conditions. - The result is the use of "broad, indeterminate language" that requires officials to fit the law to specific cases.

Why do Chinese and Americans have misunderstandings when discussing "rights?"

- Americans emphasize China's failure to guarantee political and civils rights. - Chinese emphasize the American failure to acknowledge China's accomplishments in guaranteeing its citizens economic and social rights. They are proud of the Chinese rights to sustenance for the entire population

How does one enter the Chinese Communist Party (CCP)?

- CCP chooses members based on suitability for leadership in political life (1⁄8 or 70 million) - Qualities include: political correctness, technical competence, managerial skills, entrepreneurial ability **Has to do with guanxi

How has the composition of air pollution changed?

- Cars: There are 32 million passenger vehicles on China's streets and roads—Shanghai estimates that 70 to 80 percent of its air pollution derives from automobile exhaust. - 2000 BJ started replacing coal with natural gas as a household and industrial fuel. - Still BJ is ~16X more polluted than NYC - 700,000 deaths are attributable to pollution every year

What factors create inefficiencies in the rural economy?

- Compensation system called the commune system (Prior to GLF) - based on work points- assigned on the basis of the difficulty of the task, the capability of the worker, and the amount of time spent at work. - provided no incentive to work hard or efficiently, making agricultural production stagnant - Land is taken out of cultivation for uses with little or no value for economic development. - Factories occupy lands that could be cultivated

Why are environmental issues so difficult to resolve in China?

- Correcting one source of environmental degradation can often give rise to new and potentially more dangerous sources of pollution (could affect neighboring regions) - clash of govt interests in central government and regional authorities often ends in deadlock and inaction - only 3% of environmental protection funding comes from the central government - laws are vague and hard to enforce - Bituminous "high sulfur" coal

Describe the structure of executive, legislative, and judiciary branches of government.

- Executive: State Council - heads of ministries and commissions; local interests take precedence; easier to go vertical than horizontal - Legislative: National People's Congress - rubber-stamp parliament - Judicial: apparatus of social control, in conjunction with law enforcement; function is to apply policies, laws, and regulations **Mostly underneath the executive - Smallest unit of government is the Danwei

What is the traditional order of society and why has it endured?

- Family, upper-class (gentry), group of bureaucrat officials who were recruited to office by means of a civil service examination, and the imperial throne itself - Rich people were more likely to go into these hierarchies because they could PAY for the teachers Relevance today: Gaokao high school test

Describe the imperial bureaucracy.

- Gentry and bureaucracy were engaged in an interdependent and reciprocal relationship - Position within bureaucracy enhanced status of gentry family but added wealth - Monopoly on political power was necessary complement to gentry's economic power - Organized and supervised public works that influenced economy Bureaucrats, higher in status, but depended on gentry for information to administer successfully - Composed of men who had been appointed to positions by throne - Lowest position was the county magistrate (there are 2,000) Investigate crimes, civil disputes, collect taxes, licenses, law enforcement - "Eyes, ears, arms, legs that let emperor control territory" - Law of avoidanceà prevent men from having strong ties to land they governed - Can call militia but standing army throne - Separation of political, economic, and military powers - Almost exclusively of Han ethnicity

How has Hong Kong benefited from Taiwanese law?

- HK is the point where most legal trade and investment between mainland Taiwan pass - Taiwanese law required all economic activity with mainland china to take place through a third party - Western legal system

How have foreign nations responded to the prospect of Chinese acquisitions?

- Many nations are a lot more concerned about human rights than china - Large amounts of investment by the Chinese have been welcomed into African nations

What the differences between the North American and Chinese landmasses?

- Most striking difference is Western borders - Western Border: U.S. borders ocean, China borders plateaus, mountains and deserts - Weather: U.S. determined by the jet stream's movement while China's is determined by monsoon winds - Arable Land: U.S. is 40% while China is 10%

How and why was the "through train" project from Kowloon to China dropped?

- Pattern wanted to democratize the HK government. - This replaced the "through train" project with the idea of making HK "indigestible"--as democratic as possible in the time remaining before Chinese took control in 1997. ○ That way when the Chinese take control they would not want to undo these changes as that would cause them international embarrassment Metaphor for transition: If the track were properly laid and the train properly built, the shift of sovereignty would require no one to disembark.--> aka peaceful reunification **Through train dropped bc Reunification would no longer happen peacefully

Why do petitions exist

- People are never satisfied with the system (fewer than 1% are resolved to the petitioner's satisfaction). - Number of petitions increases in March, when the National People's Congress meets bc petitioners think that will be the only time when higher-ups actually care - Recently, party-state is trying to discourage petitioners & some officials are violent to petitioners→ secret jails where provincial & municipal gov house them; detention centers for petitioners described in article as "a chain of gray industry"

How have geographical inequalities led to regionalism?

- Roads are unequally distributed, dense in the East, sparse in the West - Most interaction with the outside world happens in Coastal cities that were once treaty ports - Economic output is better for advantageous regions on the coast: these regions have substantial leads in foreign investments - Central provinces is better than west because more foreign-invested firms and per capita GDP is slightly higher - Coastal benefit most because agricultural and skilled labor surplus, which led to access to outside investment and markets

Describe the different factions within the PLA.

- Split between professionals and non-professionals Professionals: strict division between PLA and government, PLA is a contractual service Non: ○ Don't mind blurring the roles of party, government, and army. ○ Think that more is lost by having contacts w/ foreign military establishments

How does regionalism influence employment levels?

- The official unemployment figures do not mention the approximately 150 million migrants in the urban workforce. - Many of them work only intermittently, and millions are basically unemployed.

Why is Chinese coal so dangerous for air quality?

- The vast majority of China's coal is bituminous, or soft, the burning of which contributes heavily to air pollution. - hundreds of out-of-control fires in coal mines spew carbon dioxide into the atmosphere. - Coal is located everywhere and is sitting on the ground.

What is the general condition of China's water resources and why?

- The water supply in China is neither adequate nor evenly distributed. - Southern China, with about one-third of the arable land, has three-quarters of the water supply, while northern China has a serious water deficit. - Rainfall and groundwater deposits are much smaller in the North - irrigated agriculture consumes 85% of total water consumption - until very recently, water has been supplied free of charge to urban residents, there has been no incentive to conserve it - too polluted (60% of China's rivers are too polluted to use as drinking water)

What creates conflict between the regions?

- They are competing against one another for resources, benefits, and exemptions distributed by the central gov, foreign investors, and opportunities to engage in trade deals - Sometimes in the form of protectionism--economic competition cause border closing - Pollution does not recognize borders Water and air pollution - Han are more likely to be on the coast- with more political power. - They also compete for foreign direct investment.

What are the defining characteristics of the waterways in China?

- Three major river systems run west to east - In order: Yellow River, Yangzi, (both flow from tibet), Xi Jiang (flows to Pearl River that moves towards HK and Macao) - Grand Canal runs north to south (fell into disuse)

How does the Chinese political system compare to the American system in its relationship between the federal government and the state/province

- US: State precedence over federal; federal formed by agreement among states - China: power grid-like system with vertical bureaucratic departments and horizontal provinces and cities; ad hoc agreements from complex negotiations - Government can apply budgets and taxes in subordinated units - Can redistribute resources among provinces - Local officials can thwart central directives by inaction

What factors are raising the tension between the center and the regions?

- Unfunded action - the central government makes laws but does not give the regions money to comply with the laws and regulations (ex. Environmental protection laws) - Common in usa where congress ordered unfunded mandates / struggles where the money comes from--affordable care act, infrastructure - Foreign investments: central govt wanted to regulate all foreign investment, but local govt wanted freedom to create policies that would allow them to attract foreigners on their own

Describe the use of "shelter and investigation."

- a punishment used by urban police to intimidate and control the migrant worker population without the benefit of legal oversight. - Reality: police raping or beating those whom they incarcerate and extorting exorbitant sums from their relatives to secure their releases. Abolished by Wen Jiabao in 2003

What is the evolution of the relationship between the state and enterprises? After Reforms

- enterprises would be independent legal entities with the power to transform and develop and with the responsibility for their own profits and losses. - Managers were responsible for planning, supply, production, and marketing, for appointing supervisory personnel and recruiting workers, for determining wages and rewards, and for setting prices on their products.

Describe the impact of growth on arable lands and forests

- growth has taken more than 20 percent of its supply of arable land over the last fifty years. - Wood and plant stalks supply about four-fifths of the energy used for cooking and heating in the countryside - deforestation of nearly 300 million acres of land over the last forty years. - Deforestation has resulted in around 16 million acres of land being lost to desertification since 1949

How did the Three Gorges Dam contribute to electrical energy security?

- in theory 100 terawatts of hydroelectric energy per year could help reduce the use of coal by sixty million tons per year. - BUT power from the new dam will simply augment the supply of thermal-generated electricity, not supplant it, does not meet projected needs

What is the biggest problem for China's electrical power generation system?

- its under capacity - the pressing demand for more power is simultaneously fostering the opening of small, highly polluting coal-fired plants.

How does an emphasis on "quantity" over "quality" affect the Chinese justice system?

- not a problem of quantity- it is a problem of quality. - 180,000 judges nationwide, but many are selected NOT for their intellect and judicial expertise but rather for their patriotism and ideological correctness. - fewer than half of judges have completed postsecondary degrees, cant see subtleties of complex cases

What is the evolution of the relationship between the state and enterprises? Prior to Reforms

- prior to the reforms was one of total dependence - SOE itself had no incentive to maximize its profits and minimize its losses - Profits were recouped in their entirety by the state, and operating losses were made up by state grants. - Basically, in the past, factories were virtual government agencies.

Describe the current geographic mobility of rural migrant workers to urban areas and the monetary incentives for moving.

- wages are higher, so ppl want to move to cities - average urban per capita income in China's is ~ $2,000 per year; the average rural per capita income is less $605 per year EX: Barefoot doctors turned into a pay-as-you-go plan that is well beyond the means of most peasant households

What three aspects of Chinese society create a climate "conducive to corruption?"

1) A Confucian mindset that understands society as a web of mainly hierarchical relationships: in order to make one's way throughout this web, one must cultivate guanxi (relationships) through networking 2) 60 years of Socialist rule: privileged bureaucrats in a socialist state monopolized on state resources & misused them for their own advancement. They controlled education & recruitment into the political system, which means they can favor their own choices or their own children. This created a "new class" of bureaucrats. The sons & daughters of Deng and his colleagues took advantage of their parents' new position by obtaining wealth/influence for themselves. 3) The Economy's current state of incomplete marketization: although the market makes most decisions about the allocation of resources, the party & state officials still make decisions about the allocation of certain critical resources. Especially when there is a short supply of resources, decisions about who gets what quantity of critical items is a competition among the state, the collective, & the private sector. Soft budget constraints - corruption, and shortages.

What are the major reasons for urban aggregation?

1) China expanded sovereignty of territory which led to hierarchy of administrative seats in each city 2) Second reason was strictly commercial: exchange of goods led to the rise of itinerant merchants moving from village to village: this eventually turned into a hierarchy of commercial centers that was integrated with the hierarchy of administrative centers and grew from the bottom up 3) Third reason was due to government failure to prevent foreigners' commercial and cultural contact with China: first time that China was forced to open themselves up to non-Chinese: led to opening treaty ports that were neither hierarchical or effective

What are the levers used by the Party-State to control regions?

1) Power of appointment -- controls local officials and provincial officials to some degree Most effective when the party has confidence in local communities 2) Levy taxes - expresses a concrete aspect of the center-region relationship: who determines the local budget and how revenue for the budget is generated Versus the US where we have a fiscal system

Why did the CCP divest the PLA of its non-military production?

1. 1/3 of the military owned factories were losing money each year 2. Negatively affected soldiers' combat readiness 3. Decreased capability of defending China's borders since time/energy going into running an enterprise

What four "related processes" helped to liberalize the political system?

1. Bringing the Taiwanese majority into full political participation 2. Legalizing a political opposition 3. Reconstituting the government 4.Opening relations with the mainland

What constraints could prevent the Chinese economy from realizing its potential?

1. Continuing problems with the banking system 2. Growing demand for energy 3. Shortage of arable land and the limits it places on China's ability to feed its population without resorting to massive grain imports 4. Mixed results in slowing its population growth 5. Growing income inequality 6.Uncontrollable and rampant corruption

What is unique about Macao as a Special Administrative Region?

1. Economy heavily dependent on gambling revenues (2nd biggest industry is pawnshops) 2. Social structure plagued with organized crime 3.Sovereignty passed to PRC modeled after HK 4. More relaxed transfer than HK - Portuguese wanted to get rid of it unlike Britain, marked the end of the European colonial era in Asia

What three changes in the 1980s opened Chinese foreign policy to entities other than the Foreign Ministry?

1. Increasing dominance of economic issues - expanding trade and investment in the outside world - China's growing trade and investment have become more central to the economy 2. Emergence of the PLA as a major player - They developed in the 1990s with extensive international connections (many economic rather than military) 3.Balance of power between the central government and the regions has shifted to have more emphasis on the regions influencing foreign policy

Describe the origins of the Basic Law in Hong Kong.

2 bodies were created during the series of negotiations that occurred to arrange the transfer of sovereignty to China ○ Basic Law Drafting Committee: made up of HK and PRC citizens; they drew up a constitution under which HK would be governed after 1997 as the HK Special Administrative Region (SAR) ○ Basic Law Consultative Committee: made up of HK citizens; they assessed HK public opinion w/ respect to the provisions of the Basic Law Drafted by hong kong and PRC citizens ○ 1984 ○ Thatcher raised the issue of HK with Deng xiaoping ○ Considered the issue of China losing face

How did the Three Gorges Dam come to be? What conflicts and cooperation were involved in the creation of the dam? What is the significance of the dam?

3 objectives: Reduce flooding → benefit downriver, hurt upriver Hydropower → benefit downriver, hurt upriver Improve navigation → benefit upriver, hurt downriver The first two goals could be accomplished with a series of smaller dams Issues: very difficult cost benefit analysis, population displacement, v expensive, uncertain effects of silt, and inability to produce large enough generators Ministry of Communication opposed the large dam, Yangtze river planning office supported it, and provincial and local govts along the river had a range of different opinions Chongqing city, was a major supporter of the dam → would give them a large port All this resulted in a gridlock of conflicting interests President Li Peng was a major supporter of the dam and used his authority to make sure the project went through Significance is that it was a source of great conflict, but is testament to the tight grip that the central government has on the country

How and why were Hong Kong and the New Territories "leased" to the UK by China?

Because after the First Opium War, Foreign Secretary Lord Palmerston was not pleased with The Treaty of Nanjing (1842) since he saw Hong Kong as "a barren island with hardly a house upon it." → So after losing the Second Opium War, rather than ceding the land outright to the UK like they did after he First Opium War, China leased Hong Kong and the New Territories to the UK for 99 years (expired June 30 1997) ● 1839: Commissioner Lin dumped opium into Guangzhou's bay as an attempt to solve opium epidemic ● Initially, Hong Kong and the New Territories were ceded to UK in 1861, but eventually UK negotiated in 1898 and would agree to lease HK & hand it back in 99 yrs ● HK is a special city bc it is a natural deep water port, its ports and access to ships allow it to import products (easiest island to get to)

Who controls the People's Liberation Army (PLA) and why?

CCP's Central Military Commission Mao: "Political power grows out of the barrel of a gun, but our principle is that the party commands the gun and the gun must never be allowed to command the party" AKA Mao wants to have this military force under his eye CCP is in charge, but due to the recent years success of the PLA and the party's alliance on it it's hard to say that they have complete control

How is the PLA organized?

Central Military Commission (CMC) is a nominally civilian entity that controls the CMC - Most members of the CMC are military - CMC oversees 4 major departments: General Staff, General Logistics, General Political, General Armaments ○Under these 4 departments, there are 4 Branches of the PLA: ground forces, navy, air force, People's Armed Police - 7 military regions which encompass several provinces and major cities - Naval forces serve under three fleet commands

What is the conflict of interest between the center and the provinces?

Central government wants to solve problems on national level, local wants to solve them on local levels The provinces now tend to resist effort by the central gov to recoup its control of local affairs. The center believes that the major problems confronting the economy - deflation, the banking crisis, and the ailing state sector, are best addressed at the national level. Issues that pit regions against the center arise from this conflict of interests Ex. the central gov wants to control and direct the flow of foreign investment, while provinces want the freedom to attract foreign investors and the authority to cut deals with them

What is a key component in the Chinese view of the past? How is this relevant today?

China is a unified state with a strong central government led by a single ruler who exerts control over subordinate weaker local govts and its neighboring states. Today's relevance: China is STILL a tribute state today AKA taxes flow to Bejing- its another type of dynasty.

What is the corollary of the "mandate of heaven?"

Corollary: Right to rebel - Under circumstances of misrule, since mandate would be withdrawn from ruler anyways, not wrong to speed process by rebellion - This right is only granted in retrospect: if rebellion is successful, proved that mandate would be withdrawn anyways

Describe the post-War political system and the three "forces" that led to change.

Description: Disrespectful opposition to the mainland, contradictions to common assumptions about Chinese culture (respect for elders, harmony over chaos) Forces that led to change: (1) President Chiang Ching-kuo: he was devoted to democratizing Taiwan's political system and opening up contact w/ the mainland. - Chose Taiwanese as VP not a mainlander - Did not prosecute opposition party - Lifted martial law, restoring political rights & lifted ban on travelling to mainland (2) The persistence of the dangwai politicians who brought about political awakening - Dangwai= DPP oppositionists (3) The Mainland government was correct in their guess that the impending change of sovereignty in HK would prompt Taiwan to be more flexible about the unification issue

What problems have led to discontent and dissatisfaction among rural residents?

EX: North China Plain (which produces 1/2 country's wheat) drain on underground water (1) Central govt (2) Information about conditions in China's most highly developed cities is trumpeted in the official media (3) The rate of capital investment in the industrial sector is substantially higher than that in the agricultural sector. (4) People in the countryside are the first to suffer when township and village industrial enterprises flout air and water pollution regulations.

Experts

Experts: Refining combat readiness should be top priority, and any expenditure outside of military improvement is inappropriate/unproductive (i.e. managing a factory, doing job of a secretary, or paying party secretary or other political spending = unproductive) ○ Want to sharply define the roles of China's armed forces, party, & gov-- and each of these groups must confine themselves to their designated part. ○ Appreciate having contacts w/ other foreign military establishment

How did Han Fei's ideas contrast with those of Confucius?

Han Fei: asserted the principle that people are inherently evil therefore good behavior could be elicited only by means of carefully drafted laws backed by generous rewards and stringent punishments Confucius: He thought that nature is fundamentally good, he argued that good behavior was most effectively elicited by means of the ruler's example. The superior to provide a moral example, and if all went well, laws, rewards, and penalties would not be needed

Describe the inequality of rural vs. urban residents.

In 1980 rural were ⅓ of urban incomes. Using the gini (ginny) coefficient to look @ income inequality, China currently stands at 46.9 (the U.S. score is 40.8. (1 is perfect inequality and 0 is perfect equality). The average urban per capita income in China's cities stands at just over $2,000 per year; the average rural per capita income is somewhat less than $605 per year. 23% percent of the Chinese population is living in poverty (defined by the World Bank as a per capita income of less than $456 per year), and the vast majority of these are rural residents. Unemployment leads to migrant workers which leads to social issues in cities where the hukou system rates them as 2nd class citizens

What factors dominate China's formulation of foreign economic policy? In what way(s)?

It is more open than other Asian nations - very few restrictions on imports, foreign investors, and put in place regulations/incentives to encourage foreign participation in economic development **Participation in the global economy in ways that provide new sources of energy to fuel its growth 1. Open policy of the reform era - importation of technology funded by export of oil 2. When oil ran low, used investment/join venture to fuel imports 3.Establishment of open economic zones (1990)

To what degree is/was there social mobility?

Key component of balanced traditional system is that social order not fixed for all time- BUT it IS hard to move through the system without wealth. Status said to be based on achievement not birth. Process of Upward mobility: need intellectual son with promise and enough wealth and labor power to do without him in the fields - Then need to find a teacher - Pass exam, try to get a job, securing a place in office is often tedious and takes several years - Extra wealth leads to advancing family wealth Descent: political positions are not hereditary and wealth distributed to all sons

Why is "reunification" with Taiwan a critical issue for mainland China?

LONG STORY SHORT: Because China would lose economically as a result of reunification with Taiwain, but at the same time, not reunifying would cause China to "lose face". DETAILED: (1) Both economies are better off not reunifying; this is b/c there is already a substantial two-way trade between them so reunification could only serve to deteriorate their economies. (2) If Chinese gov. does not reunify, it is seen as their loss of face to the Americans (3) Taiwan will also lose face to Americans if they reunify with China. (4)Beijing believes that Taiwan is an integral part of China and national sovereignty is incomplete until they control it

How did WWII affect Hong Kong residents?

Lowered the population and then instantly increased it. ○ At first, population lowered (from 1 million to 600,000) when Japanese occupied HK in 1941 and imprisoned the foreign population. - then population increased drastically (quadrupled in less than 5 years) as Chinese fled the civil war between Nationalist and Communist forces that swept southward thru the mainland ● New residents immigrated to Hong Kong--skilled businessmen and their families from Guangzhou and Shanghai fled the prospect of Communist rule & migrated to HK. ○ After the founding of the People's Republic in 1949, more Chinese citizens entered HK ○ Most migration happened illegally--coming from Guangdong Province, risking their lives to escape.

Examples of Protests

Mass protest was encouraged during the Cultural Revolution but it was put to an end by People's Liberation Army in 1989, bringing a negative stigma towards political protest that took 1 decade to heal. When Mao died in 1976, political protest was revived & was directed against Mao & the Gang of Four. in late 1980s, university students also protested about the bad quality of their education & living conditions

What was the goal of the rural reforms? Urban?

Rural: Restore private enterprise to family farms. People made up lies that the reform were devised to make this goal conform to "socialism with Chinese characteristics" , but in reality- the practical effect was to privatize agricultural production. Full-scale privatization of industry was not the goal. Urban: change 3 key relationships of SOEs: those with the state, employees and customers, encouraged growth of private and collective enterprises to increase supply and variety of goods available to city dwellers, fixed rate corporate tax, power to managers on how to reinvest, less subsidies when a loss hits *Responsibilities of the state were now limited to appointing managers, levying taxes, extending credit, est. new enterprises and consolidating/moving/saving enterprises that failed

If population is in the denominator, what important variable is in the numerator of China's representative fraction?

The food supply. - Everything in China is related to food- net importer of food - ensuring a sufficient food supply for the Chinese people is the first priority for those responsible for guiding China's rural economy

Describe the three institutions in the Chinese Communist legal system.

The legal system was made up of three institutions: - the Ministry of Public Security, which was responsible for police work - People's procuracy - a procuracy at each level of government, which investigated and prosecuted crimes and reported to the Supreme. - and courts at each level of government, headed by the Supreme People's Court, which heard and decided cases and set punishments.

What motivates Chinese citizens to protest? How and why does the government react?

The majority of protesters are motivated by government corruption (particularly corrupt practices regarding the transfer of rural property), government inaction (particularly in cases of damage incurred by egregious examples of environmental pollution or the failure to pay out wages owed to workers in failing state-owned factories), and government intervention (particularly in the case of Tibetans demanding greater autonomy).

On what patterns from the past has the Communist Party based its rule?

Theories of Karl Marx, who found synthesis between history being cyclical and linear - Trying to connect to feudal society as backbone of communism - States that through a series of revolutions society advanced from a slave system through a feudal and capitalist system to a socialist system, finally ending at communism Mao informed more by experiences of guerrilla warfare, not Marxist historiography - Campaigns, ideological slogans, obedience, bribery

What did "rule of law" mean under Mao?

There was essentially no law at all under Mao. Mao believed in ideological principles, not laws. These principles gave rise to a "line" of correct thinking, which in turn was translated into specific policies, each of which had implementing regulations

How does the center ensure local compliance?

They do not have credibility however, which is why they need to use these methods: Manipulation, persuasion, and coercion Also minimize the differences between central and local interests There is also the use of bargain, since the central government holds limited but significant chips that it can use over local authorities **In the US it is votes, not compliance

What does the CCP prefer in lieu of simple majority rule and why?

This wasn't in the book and is kind of an educated guess Consensus over single majority of rule Has to do with the importance of losing face. Aversion to conflict and disorder. Commitment problem / blood on everyone's hands. Just like system of laws is intentionally vague, definition of consensus is also intentionally vague.

What economic factor provided an incentive for legal reform?

Trade and investment with foreign firms! - Foreign firms were reluctant to interact without laws in place that would regulate these transactions and protect all parties' interests. - First new laws defined the terms on the basis of which joint ventures would be formed and trade would be conducted.

How would you compare the differing origins of the U.S. and Chinese legal systems?

U.S: rooted in the concept of the rule of law, and All citizens are equal before the law, and everyone, regardless of position or status, is subject to it. China: rooted in the concept of the rule of men (in recent years expanded in a very limited way to include a few women), and the individual officeholder stands above the law and serves as the arbiter to whom disputes are referred.

How does the Chinese political system compare to the American system in its relationship between the branches of government

US: Each branch checks another; equal partners in relationship China: in practice only two branches with judiciary being an extension of the executive; legislature only somewhat checks other branches

How does the Chinese political system compare to the American system in its relationship between the civilian and military authority

US: military subordinate to civilian leadership; military intervention into civilian life not a threat The posse comitatus act prevents US military from being active on US soil China: blurring line between military and civilian authority; party holds control over PLA (people's liberation army)

How does the Chinese political system compare to the American system in its relationship between the political parties and the government

US: regulated by custom more than law; not selective, free to enter and switch; control of government determined by presidency and majority in Congress China: setting policy lies outside of government and monopolized by the CCP; no opposition allowed; property and organization restricted and punishment applied

Mandate of Heaven

a political theory of ancient China in which those in power were given the right to rule from a divine source AKA a source of political legitimacy for the ruling emperor/ family; dates back to Zhou dynasty

Regionalism

a system with regional rather than central systems of administration)

Praetorian rule

when a nation's military force seizes control from a government it sees as inept or corrupt. It is also a military dictatorship similar to the romans

4 goals of China's economic policy (globalization)

○ search for energy sources → led to increased interest in african initiatives ○ development of new markets for chinese goods→ in doing so, China's exports can balance the demand for costly imports of high tech equipment and raw materials ○ Continue to cultivate traditional economic partners like japan, South korea, europe, and the US ○ To curb its competition (this goal has long-term significance)

How has China responded to the United States' foreign military adventures?

● Gulf War, NATO operations in Kosovo, Afghanistan and Iraq ● Agenda to modernize military capabilities→ China wants a strategic partnership w/ the US & has secretly acquired US military technology & data thru exchanges b/w technicians and scientists. And Pentagon believes this will help defuse tensions arising from misunderstandings ● Acquire foreign military hardware, even by means of espionage and forced transfer ● Growing domestic R&D and production→ China's arms industry has grown rapidly

How might praetorian rule be established in China? Do you think it would succeed?

● The PLA has a monopoly on arms, patriotism, public credibility, & a reputation of being less corrupt which it could leverage if it wanted to establish praetorian rule. ● Growing frustration and distrust of the CCP may aid a coup ● In the past, PLA officers stepped in to take positions on revolutionary committees (but this was only due to their personal loyalty to Mao Zedong) ● Ability to quell civil disturbance via arms, patriotic- could motivate to politically intervene, publicly credible **No, it would not succeed - in order for them to step in the CCP needs to be weakened, and they have enough all-encompassing control to make sure that doesn't happen/the appearance of weakness is not publicly visible