China’s economic and military rise dominates discussions of the world’s most populous country. Resilient authoritarian government is credited with great successes, but this book expands the discourse to include governance by village heads - who often ignored central politicians. Chinese reforms for prosperity started circa 1970 under rural and suburban leaders. They could act autonomously then because of unexpected political and technological opportunities. Their localization of power eroded socialist controls. Since 1990, central leaders have tried to reverse reforms made by resilient local bosses. New findings, especially from the Yangzi delta around Shanghai, challenge the top-down approach to thinking about governance. As Deng Xiaoping admitted, the nation’s spurt of prosperity began in local communities rather than Beijing. Reforms for triple-cropping and rural industrialization started long before Mao’s death (not in 1978, the date most writers cite). Country factories competed with state industries for materials and markets. Shortages by the 1980s led to inflation, government deficits, unofficial credit, unenforceable planning, illegal migrations, then international exports - and severe political tensions. After 1990, Party leaders sought policies to build a Leninist regime that is mostly post-socialist. These reactionary changes have lasted into the era of Xi Jinping. China’s reforms and subsequent changes can be understood as results of unintended situations not just ideas, and local not just central politics. This book will interest students and scholars of Chinese, as well as any readers who wonder about comparative development.

China has become deeply integrated into the world economy. Yet, gradual marketization has facilitated the country’s rise without leading to its wholesale assimilation to global neoliberalism. This book uncovers the fierce contest about economic reforms that shaped China’s path. In the first post-Mao decade, China’s reformers were sharply divided. They agreed that China had to reform its economic system and move toward more marketization—but struggled over how to go about it. Should China destroy the core of the socialist system through shock therapy, or should it use the institutions of the planned economy as market creators? With hindsight, the historical record proves the high stakes behind the question: China embarked on an economic expansion commonly described as unprecedented in scope and pace, whereas Russia’s economy collapsed under shock therapy. Based on extensive research, including interviews with key Chinese and international participants and World Bank officials as well as insights gleaned from unpublished documents, the book charts the debate that ultimately enabled China to follow a path to gradual reindustrialization. Beyond shedding light on the crossroads of the 1980s, it reveals the intellectual foundations of state-market relations in reform-era China through a longue durée lens. Overall, the book delivers an original perspective on China’s economic model and its continuing contestations from within and from without.

Winner of the Lionel Gelber Prize National Book Critics Circle Award Finalist An Economist Best Book of the Year | A Financial Times Book of the Year | A Wall Street Journal Book of the Year | A Washington Post Book of the Year | A Bloomberg News Book of the Year | An Esquire China Book of the Year | A Gates Notes Top Read of the Year Perhaps no one in the twentieth century had a greater long-term impact on world history than Deng Xiaoping. And no scholar of contemporary East Asian history and culture is better qualified than Ezra Vogel to disentangle the many contradictions embodied in the life and legacy of China’s boldest strategist. Once described by Mao Zedong as a “needle inside a ball of cotton,” Deng was the pragmatic yet disciplined driving force behind China’s radical transformation in the late twentieth century. He confronted the damage wrought by the Cultural Revolution, dissolved Mao’s cult of personality, and loosened the economic and social policies that had stunted China’s growth. Obsessed with modernization and technology, Deng opened trade relations with the West, which lifted hundreds of millions of his countrymen out of poverty. Yet at the same time he answered to his authoritarian roots, most notably when he ordered the crackdown in June 1989 at Tiananmen Square. Deng’s youthful commitment to the Communist Party was cemented in Paris in the early 1920s, among a group of Chinese student-workers that also included Zhou Enlai. Deng returned home in 1927 to join the Chinese Revolution on the ground floor. In the fifty years of his tumultuous rise to power, he endured accusations, purges, and even exile before becoming China’s preeminent leader from 1978 to 1989 and again in 1992. When he reached the top, Deng saw an opportunity to creatively destroy much of the economic system he had helped build for five decades as a loyal follower of Mao—and he did not hesitate.

" In 1978, China launched economic reforms that have resulted in one of history’s most dramatic national transformations. The reforms removed bureaucratic obstacles to economic growth and tapped China’s immense reserves of labor and entrepreneurial talent to unleash unparalleled economic growth in the country. In the four decades since, China has become the world’s second-largest economy after the United States, and a leading force in international trade and investment. As the contributors to this volume show, China also faces daunting challenges in sustaining growth, continuing its economic ransformation, addressing the adverse consequences of economic success, and dealing with mounting suspicion from the United States and other trade and investment partners. China also confronts risks stemming from the project to expand its influence across the globe through infrastructure investments and other projects under the Belt and Road Initiative. At the same time, China’s current leader, Xi Jinping, appears determined to make his own lasting mark on the country and on China’s use of its economic clout to shape the world around it. "

China has, since 1976, been enmeshed in an extraordinary program of renewal and reform. The obvious changes—the T-shirts, blue jeans, makeup and jewelry worn by Chinese youth; the disco music blaring from radios and loudspeakers on Chinese streets; the television antennas mushrooming from both urban apartment complexes and suburban peasant housing; the bustling free markets selling meat, vegetables and clothing in China's major cities—reflect a fundamental shift in the government's policy toward the economy and political life. Although doubts about the long-term commitment to reform arose after the student protests in December 1986 and the dismissal of Party General Secretary Hu Yaobang in January 1987, the scope of reform has been so broad and the pace of change so rapid, that the post-Mao era fully warrants Den Xiaoping's description of it as the "second revolution" undertaken by the Chinese Communist Party.

In the past decade, China was able to carry out economic reform without political reform, while the Soviet Union attempted the opposite strategy. How did China succeed at economic market reform without changing communist rule? Susan Shirk shows that Chinese communist political institutions are more flexible and less centralized than their Soviet counterparts were. Shirk pioneers a rational choice institutional approach to analyze policy-making in a non-democratic authoritarian country and to explain the history of Chinese market reforms from 1979 to the present. Drawing on extensive interviews with high-level Chinese officials, she pieces together detailed histories of economic reform policy decisions and shows how the political logic of Chinese communist institutions shaped those decisions. Combining theoretical ambition with the flavor of on-the-ground policy-making in Beijing, this book is a major contribution to the study of reform in China and other communist countries.

This book examines a wide range of governance reforms in the People's Republic of China, including administrative rationalization, divestiture of businesses operated by the military, and the building of anticorruption mechanisms, to analyze how China's leaders have reformed existing institutions and constructed new ones to cope with unruly markets, curb corrupt practices, and bring about a regulated economic order.