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- The Law
- Intended to rationalize (not limit) power of state
- Developed in a piecemeal fashion since the early 1980's
- Typically provisional regulations with large amount of experimentation
- Contradictory laws, spotty enforcement.
- The Party
- Derives power mostly from personnel decisions and interpersonal networks
- Sets overall policy and coordination
- Sets limit of debate
- Specialization creates increasingly bureaucratic battles and decision making
- The State
- Fused party-state at the top. Not similar to Soviet structure
- Relations at lower levels appear to depend on province. Tendency under Hu Jintao to increase role of party.
- The Army
- Generally not involved in economic decision making
- Pricing system (The invisible hand)
- Most prices now market determined
- Major effort in the 1980's was to set this up
- People's Bank of China
- 1950-1978 - Only bank
- Focus of economic reforms has been to convert PBC to central bank
- Major reform of the 1990's was to allow PBC to set monetary policy
- Boom-bust cycles in the 1980's
- Largely complete
- Banks
- Four major banks
- Originally bureaus of the PBC
- During the 1980's and early 1990's ordered to give loans to State owned enterprises
- insolvent but liquid
- "Policy loan" function removed in the late-1990's
- currently being recapitalized
- The view from Beijing
- United States
- Love-hate relation
- Glass-Stegall
- Open to trade and foreign investment
- Russia
- Relaxation of party control is bad
- Don't overspend on the military
- Privatization is bad
- Japan
- Neo-merchantilist policies bad
- Korea
- Concentration of industry - bad
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