China's Rise in the Age of Globalization
eBook - ePub

China's Rise in the Age of Globalization

Myth or Reality?

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eBook - ePub

China's Rise in the Age of Globalization

Myth or Reality?

About this book

This book deconstructs a series of myths surrounding China's economic rise. The first myth is that globalization led directly to China's rise; the second is that China is another East Asian developmental state; the third that China's market reform had been implemented in an incremental way; and fourth that China's 'resilient authoritarianism' has been effective in ensuring the country's economic and political transformation.

Yue argues that the China model is one of 'crony comprador capitalism' that has hindered the country's attempts at economic and political modernity.It is argued that the United States' strategy of integrating China into the international system is self-defeating in the long run; not because such an approach has created a 'restless empire' capable of challenging US primacy, but because the Chinese 'miracle' has subsequently backfired on the liberal order created after World War Two. Covering the entire reform period from the end of the CulturalRevolution in 1976 to the present day, the author calls for readers to rethink globalization and leave more policy space for China and the developing nations to pursue national development through internal integration, which is more conducive to democratic transition and global peace.

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Yes, you can access China's Rise in the Age of Globalization by Jianyong Yue in PDF and/or ePUB format, as well as other popular books in Volkswirtschaftslehre & Internationale Wirtschaft. We have over one million books available in our catalogue for you to explore.
© The Author(s) 2018
Jianyong YueChina's Rise in the Age of GlobalizationPalgrave Studies in Economic Historyhttps://doi.org/10.1007/978-3-319-63997-0_1
Begin Abstract

1. Introduction

Jianyong Yue1
(1)
London School of Economics and Political Science, London, UK

Keywords

FrankensteinDemocratic transitionTotalitarian turnDeep integrationDependent developmentAutonomous developmentReform and opening
End Abstract

China Says No to Fukuyama

Precisely before the end of the Cold War, the American political scientist Francis Fukuyama propounded his most famous thesis of so-called end of history in the summer issue of The National Interest in 1989. He announced with full confidence the eventual triumph of liberal democracy and predicted with extraordinary courage the inevitable “universalization of Western liberal democracy as the final form of human government.”1 His arguments resonated in the post-Cold War years when more and more countries joined the ranks of democracies furthering the flow of the third-wave democracy that had begun in 1974. But history did not end. It has since moved in many directions with competing ideologies—bar Communism—remaining tenacious in many parts of the world, be it Islamic fundamentalism, re-animated totalitarian tendencies in countries such as Russia2 and China, or the non-ideological “Clash of Civilizations.” History has also returned in the traditional form of revived geopolitical competition between the great powers.3 Among these divergences, the rise of China and its implications on both the country’s domestic politics and international politics have posed the greatest challenge to Fukuyama’s historical determinism.
Like Marxists, Fukuyama views material force such as the markets as the driver for a “Darwinian evolution” of the political infrastructure, although in an entirely different direction.4 He has noted uneasily the hardening of Chinese authoritarianism that sufficed to render his theory invalid. Yet he tends to believe that events that had incurred temporary setbacks (return of history) will not alter the predestined historical process in the long term. Sensing the growing bottom-up pressures for political liberalization within Chinese society, Fukuyama traveled to Beijing on April 23, 2015, to interview Wang Qishan—one of the most powerful figures in charge of China’s anti-graft campaign and member of the new Standing Committee of the Chinese Communist Party’s (CCP) Politburo formed in late 2012 after the closing of the 18th National Party’s Congress—in the hope of getting the right kind of answer he needed. Wang was an outstanding technocrat with rich administrative experience, skilled at handling thorny issues. He was fond of history books and did read extensively. His most recent reading was The Old Regime and the Revolution written by Alexis de Tocqueville in 1856. These credentials had won him a lot of applause among Chinese intellectuals, many of whom viewed him as the hope of pushing China in the right direction of liberal democracy. His forthcoming dialogue with Fukuyama became the weather vane of Chinese politics—and he did give Fukuyama and the Chinese intellectuals the most straightforward answer. Wang began by acknowledging the “excellent DNAs” of “the nation, the rule of law, and accountability” rooted in the Chinese civilization, which “should play a role in China’s modernization.” He frankly admitted that uprooting corruption by the party itself was extremely difficult. Yet in response to Fukuyama’s suggestion that the rule of law and an independent judiciary be established so as to eradicate corruption institutionally, Wang replied in an unquestionable tone that the one-party leadership will never be abandoned and the judicial system must be run under the leadership of the Communist Party.5 What would have further frustrated Fukuyama, as revealed later, was the internal remarks made by Wang ten days earlier at the CCP’s Central Disciplinary and Inspection Committee (CDIC). These remarks ranked this allegedly most enlightened Communist politician among the most conservative ultra-leftists in the defense of the totalitarian party-state regime and the Marxist capitalism it created in the reform era, a “socialism of (rather than with) Chinese characteristics,” as he repeatedly reiterated.6
The CCP’s blatant rejection of democracy and the strong measures of Xi Jinping, the all-powerful paramount leader, like Putin’s Re-Stalinization in Russia, to reestablish totalitarian rule in China, provided a potent counterargument to Fukuyama’s “end of history” thesis. The post-Mao China had instead presented to the outside world an alternative model of “Marxist capitalism”—a distinctive Chinese way of creating “wealth without freedom.”7 This sort of market Leninism has to date created a stunning economic miracle, which as a consequence enormously bolstered the authoritarian regime. Unlike in other authoritarian states in which civil society had kept growing up hand in hand with the economy, the Chinese party state had all the while kept a tight grip over the society and exhibited persistent totalitarian tendencies throughout the reform years. As Wu Guoguang noted, the perplexing paradox was that the Chinese Communist regime intuitively resisted any political change for fear of losing power during an economic crisis, and it felt no need to launch any political reform with a view to increasing its legitimacy during an economic boom.8 Anyway, as historians often argue, nothing is impossible. In the future, Fukuyama might still have the chance to witness sudden dramatic change in China, like the one that took place in Communist Romania in 1989. That sort of abrupt change might occur not necessarily because of the power of his liberal-materialistic deterministic logic, but because of accidents, such as a major economic crisis, which is a high probability event as a result of the country’s deep integration into the global economy. But China might also change in other directions. With democracy having being strenuously demonized by China’s Marxist regime, Maoism, in one form or another, might be brought back as a solution to the alienation into New Class of the ruling Marxist capitalists or “capitalist roaders.” History is not linear; it can be reversed, and “repeats itself,” as Marx claimed.
Furthermore, with relevance to China, Fukuyama’s broadly termed “temporary setbacks” might not be “temporary” in global historical terms. It is worth remembering that even the triumph of liberal democracy as proclaimed by Fukuyama in the late 1980s is not preordained. Ideology often makes people blind to historical truths. The moral high ground that liberal democracy holds today has never guaranteed its triumph over other “evil” forms of government as a historical inevitability. It is inconceivable that a liberal democratic order would have been put in place after World War II without the USA. Had the USA not existed, the industrial democracies in Western Europe would have had little chance to vanquish the German Reich in the two world wars. Without a USA committing itself to the European security and recovery after World War II, the capitalist Western Europe would probably have been engulfed in a pro-Communist revolution. In the absence of a powerful industrial democracy of the USA, other forms of government might have prevailed, thereby legitimating multiple pathways of development other than the currently dominant free-market capitalism based on liberal democracy. Take World War I as an example: should the democracies have failed, a most likely outcome without the US intervention, the German Reich would have been better able to project its economic and ideological powers beyond the Mitteleuropa, the German-centered Central-European Customs Union. The “New Capitalism” of Germany, an organized authoritarian capitalism characterized by state-led industrialization and welfare-state building, would unequivocally have become the most attractive model of development to late-developing countries in the decades or even centuries that ensued.9
Imperial Germany had in actuality offered an alternative form of government and a unique model of development that were deemed not inferior to competing regime types and economic models at the time.10 The particular way imperial Germany rapidly industrialized in the late nineteenth century had appeared “universalistic” to many late-developing countries that were institutionally weak and thus had to rely on a strong authoritarian state to foster a Gerschenkronian growth to overcome economic backwardness. The German “Asiatic model” of authoritarian capitalism had since been successfully emulated, though to varying degrees, by late-industrializers in East Asia, namely, Japan, South Korea and Taiwan before and after the two world wars. The discrediting of this model, as Liven argued, was not because of its “being less modern and efficient” but because of its being “overthrown by military defeat” in the World War I.11 Seen from a broader historical perspective, industrialization without liberal democracy had been the norm. The USA was the only exception among the now-developed countries (NDCs) to have managed to “simultaneously meet the demanding prerequisites of both economic development and a democratic process.”12 For most NDCs, industrialization, which stands for “a brutal and exploitative process” in the takeoff phase, was meant to suppress “redistributive claims on wealth” so as to enable the requisite capital formation and investment by “less democratic or authoritarian regimes” to foster economic and social transformations.13 This is precisely why Park Chung-hee’s hard authoritarian approach to harnessing rapid industrialization in the 1970s was hailed by Samuel Huntington, who, in delving into the turbulent modernization process of “changing societies,” underscored the necessity of maintaining order at the critical moment of profound economic change.14 But even so, both the East Asian regimes (South Korea and Taiwan)’ eventual transition to democracy from the late 1980s onward was driven not so much by the “Darwinian evolution process” as by political pressures from the USA, which both the regimes found hard to resist given the acute vulnerabilities of their respective smaller-sized export-dependent economies.15 The overwhelming primacy of liberal democracy was established only after the sudden collapse of the Soviet Union in 1991. It is worth noting nonetheless that it was Gorbachev’s reform blunders and grave miscalculation that caused the collapse of the Soviet system and empire, a momentous event that was in no sense unavoidable.16
There is little doubt, therefore, that it is those accidental “events”—military victories of American-led liberal democracies in the two world wars and the largely accidental demise of Soviet Communism in the Cold War—that had made the precarious historical process seem inevitable. If the global Cold War had politicized the discourse of development, making it part of the international relations, the triumph of liberal democracy in the late 1980s, coupled with the failure of the “Southern Challenge,” an effort of the less-developed countries (LDCs) to establish a new international economic order (NIEO) in attempt to reform the dominant Western liberal economic order from the 1970s till the mid-1980s, naturally legitimized the neoliberal paradig...

Table of contents

  1. Cover
  2. Front Matter
  3. 1. Introduction
  4. 2. Process of China’s WTO Accession: A Questionable Integration
  5. 3. Chinese Reform and Development in the 1980s
  6. 4. From Tiananmen to Shenzhen: Transition to Capitalism
  7. 5. The 1990s: Washington Consensus in China?
  8. 6. USA, Global Capitalism and “Drawing China Out”
  9. 7. After the WTO: Rise or New Dependency?
  10. 8. Conclusion
  11. Back Matter