Most western economists have denied the linkage between the rise in the skill premium in the North and North-South trade. Their main argument is that the volume of Southern exports is too small (about 2% of Northern GDP) to produce large labor-market effects. By exploring the nature of North-to-South outsourcing of low skill activities, we propose a CGE model in which a small volume of imports (e.g. 1% of Northern GDP) can cause the observed rise in skill premium. The implication of this is that trade may eventually be recognized as responsible for widening wage inequality, leading to heightened protectionist pressures in the west. Hence China's current export oriented development strategy is not sustainable.

This paper assesses the sustainability of China's export-oriented growth over the medium to longer term. It shows that maintaining the current export-oriented growth would require significant gains in market share through lower prices in a range of industries. This, in turn, could be achieved through a combination of increases in productivity, lower profits, and higher implicit or explicit subsidies to industry. However, the evidence suggest that it will prove difficult to accommodate such price reductions within existing profit margins or through productivity gains. Moving up the value-added chain, shifting the composition of exports, diversifying the export base, and increasing domestic value added of exports could give room to further export expansion. However, experiences from Asian economies that had similar export-oriented growth suggest there are limits to the global market share a country can occupy. Rebalancing growth toward private consumption would provide a large impetus to output growth and reduce the need for gaining further market share.

Using a historical, comparative and analytic approach grounded in mainstream economics, the authors develop a consistent and rational framework of state-owned enterprises and individual agents to analyze the internal logic of the traditional Chinese planning system. In this revised edition, the authors update the data and information in the book and include a new chapter on the impact of China's WTO accession on its reform.

In the past 30 years or so, reform and opening-up are the two major themes for China's economic and social development. Since the beginning of the 21st century, China has made great explorations in the depth and breadth of opening-up. This book provides a comprehensive overview of some issues and policies of mutual benefit and win-win strategies, which include China's foreign trade and technical barriers to trade, China's technology progress, China's service outsourcing industry, China's direct investment and RMB internationalization. It is an important reference book for Chinese policy-makers, Chinese businessmen and foreigners.

This book, first published in 1995, looks at the East Asian economies' post-war development and assesses the possibilities of transferring East Asian development elsewhere. Written and edited by economists, Sustaining Export-Oriented Development traces the changes in the thinking of policy makers and advisers about the policies required for economic development - especially the changed emphasis from import-substitution to outward-orientation which coincided with the East Asian economies' success. Several contributors focus on identifying the key factors in the growth of these dynamic economies. Others look at future constraints such as the environmental limits to growth and the sustainability of export growth in China. This book makes a significant contribution to the discussion of economic growth and development issues and will be of interest to those in economics, trade and aid, and others concerned with public policy.

China is a powerful engine of the global economy and the country's rise is undoubtedly the outcome of its protracted campaign of designing and implementing national development strategies since the founding of the People's Republic of China in 1949. This book reviews the transformation and innovation of China's economic development strategies, especially Deng Xiaoping's Three-Step strategy and Xi Jinping's internal and external strategies. By introducing the concept of strategic paradigm, it analyzes the theoretical basis of myriads of economic development strategies and predicts China's choice. With the evolutionary process and the outstanding problems in national development planning as the main thread, it discusses the improvement of the national planning system, specifically of the national overall planning system, the regional planning system, the interplay and conflict between regional planning. It also studies the reform of city-county planning system, major function-oriented zones (MFOZs) and planning legislation and institutionalization. It also attempts to put forward proposals to coordinate the interests of planning departments and make different types of planning at different administrative levels compatible.

Prior to the initiation of economic reforms and trade liberalization 36 years ago, China maintained policies that kept the economy very poor, stagnant, centrally-controlled, vastly inefficient, and relatively isolated from the global economy. Since opening up to foreign trade and investment and implementing free market reforms in 1979, China has been among the world's fastest-growing economies, with real annual gross domestic product (GDP) growth averaging nearly 10% through 2016. In recent years, China has emerged as a major global economic power. It is now the world's largest economy (on a purchasing power parity basis), manufacturer, merchandise trader, and holder of foreign exchange reserves.The global economic crisis that began in 2008 greatly affected China's economy. China's exports, imports, and foreign direct investment (FDI) inflows declined, GDP growth slowed, and millions of Chinese workers reportedly lost their jobs. The Chinese government responded by implementing a $586 billion economic stimulus package and loosening monetary policies to increase bank lending. Such policies enabled China to effectively weather the effects of the sharp global fall in demand for Chinese products, but may have contributed to overcapacity in several industries and increased debt by Chinese firms and local government. China's economy has slowed in recent years. Real GDP growth has slowed in each of the past six years, dropping from 10.6% in 2010 to 6.7% in 2016, and is projected to slow to 5.7% by 2022.The Chinese government has attempted to steer the economy to a "new normal" of slower, but more stable and sustainable, economic growth. Yet, concerns have deepened in recent years over the health of the Chinese economy. On August 11, 2015, the Chinese government announced that the daily reference rate of the renminbi (RMB) would become more "market-oriented." Over the next three days, the RMB depreciated against the dollar and led to charges that China's goal was to boost exports to help stimulate the economy (which some suspect is in worse shape than indicated by official Chinese economic statistics). Concerns over the state of the Chinese economy appear to have often contributed to volatility in global stock indexes in recent years.The ability of China to maintain a rapidly growing economy in the long run will likely depend largely on the ability of the Chinese government to implement comprehensive economic reforms that more quickly hasten China's transition to a free market economy; rebalance the Chinese economy by making consumer demand, rather than exporting and fixed investment, the main engine of economic growth; boost productivity and innovation; address growing income disparities; and enhance environmental protection. The Chinese government has acknowledged that its current economic growth model needs to be altered and has announced several initiatives to address various economic challenges. In November 2013, the Communist Party of China held the Third Plenum of its 18th Party Congress, which outlined a number of broad policy reforms to boost competition and economic efficiency. For example, the communique stated that the market would now play a "decisive" role in allocating resources in the economy. At the same time, however, the communique emphasized the continued important role of the state sector in China's economy. In addition, many foreign firms have complained that the business climate in China has worsened in recent years. Thus, it remains unclear how committed the Chinese government is to implementing new comprehensive economic reforms.China's economic rise has significant implications for the United States and hence is of major interest to Congress. This report provides background on China's economic rise; describes its current economic structure; identifies the challenges China faces to maintain economic growth; and discusses the challenges, opportunities, and implications of China's economic rise.