China as an Asian Economic Power

Abstract

The post-1978 Chinese economic reforms have produced a rough- hewn, quasi-capitalist system that operates within a market-friendly Leninist political power structure. To date, the macroeconomic results of this combination have been remarkable in terms of overall and per capita growth rates of domestic product, and foreign trade and investment. By its sheer bulk alone, China has emerged as a world economic player to be heeded. Some outsiders (particularly Hong Kong and Taiwan businessmen) view this emergence with optimism. Others see potential dangers in the combination of growing economic muscle and political despotism. Assuming that present growth trends will continue, the question as to whether China will put its future wealth to peaceful and constructive uses will depend in crucial measure on China’s ability to open up its political system without upheaval—based on the Taiwan model.