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China's Great Ascendancy and structural risks: consequences of asymmetric market liberalisation

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  • Yiping Huang

Abstract

China's great ascendancy from a poor agrarian economy to an economic superpower is unprecedented. But in the process, structural imbalances, resource inefficiency, and income inequality worsened rapidly. It is argued that the coexistence of China's extraordinary growth and serious structural risks are two sides of the same coin: asymmetric liberalisation of product and factor markets. Distortions in markets for labour, capital, land, energy, and the environment lower production costs, increase corporate profits, raise investment returns, improve the international competitiveness of Chinese goods, and therefore lift China's growth. But they also depress consumption. China needs to accelerate factor market liberalisation in order to complete the transition to a market economy and to lock the economy onto a more sustainable path. Copyright © 2010 The Author. Journal compilation © 2010 Crawford School of Economics and Government, The Australian National University and Blackwell Publishing Asia Pty Ltd..

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  • Yiping Huang, 2010. "China's Great Ascendancy and structural risks: consequences of asymmetric market liberalisation," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 24(1), pages 65-85, May.
    • Handle: RePEc:bla:apacel:v:24:y:2010:i:1:p:65-85
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    5. Julan Du & Hongsheng Fang & Xiangrong Jin, 2013. "Chinese Political and Economic Governance System and the Imbalance between Consumption and Investment," Working Papers 232013, Hong Kong Institute for Monetary Research.
    6. Du, Julan & Fang, Hongsheng & Jin, Xiangrong, 2014. "The “growth-first strategy” and the imbalance between consumption and investment in China," China Economic Review, Elsevier, vol. 31(C), pages 441-458.
    7. Chai, Yuan & Pardey, Philip G. & Chan-Kang, Connie & Huang, Jikun & Lee, Kyuseon & Dong, Wanlu, 2019. "Passing the food and agricultural R&D buck? The United States and China," Food Policy, Elsevier, vol. 86(C), pages 1-1.
    8. Howes, Stephen & Wyrwoll, Paul, 2012. "Asia’s Wicked Environmental Problems," ADBI Working Papers 348, Asian Development Bank Institute.
    9. Howes, Stephen & Wyrwoll, Paul, 2012. "Climate Change Mitigation and Green Growth in Developing Asia," ADBI Working Papers 369, Asian Development Bank Institute.
    10. Fu, Tong & Yang, Siying & Jian, Ze, 2022. "Government support for environmental regulation: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 83(C).
    11. Michel Aglietta & Guo Bai, 2014. "China’s Roadmap to Harmonious Society : Third Plenum Decisions on “major issues concerning comprehensively deepening reforms”," CEPII Policy Brief 2014-03, CEPII research center.
    12. Stephen Howes & Paul Wyrwoll, 2012. "Climate Change Mitigation and Green Growth in Developing Asia," Working Papers id:5059, eSocialSciences.
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