China's Conflict Between Economic and Political Liberalization

{
  "authors": [
    "Yukon Huang"
  ],
  "type": "other",
  "centerAffiliationAll": "dc",
  "centers": [
    "Carnegie Endowment for International Peace"
  ],
  "collections": [],
  "englishNewsletterAll": "asia",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie Endowment for International Peace",
  "programAffiliation": "AP",
  "programs": [
    "Asia"
  ],
  "projects": [],
  "regions": [
    "East Asia",
    "China"
  ],
  "topics": [
    "Political Reform",
    "Economy"
  ]
}

Other

China's Conflict Between Economic and Political Liberalization

By Yukon Huang

Published on Dec 31, 2012

Source: SAIS Review

China’s impressive growth record has been facilitated by a unique relationship between Beijing and the provinces that encourages experimentation and incentivizes officials for driving economic growth—and for the most part this helped maintain political stability. While these arrangements spurred economic liberalization, political liberalization was put on hold. But rapid growth has not spared China from increasing social unrest given frustrations over widening disparities both in opportunities and outcomes and mounting conflicts over use of resources. Some now question the regime’s capacity to deal with society’s concerns. This paper examines recent politically charged events that have intensified discussions about the potential for economic and political reforms that would be acceptable to the Communist Party and still supportive of China’s broader objectives.

Three decades of economic liberalization have restored much of the vibrancy that China last displayed two centuries ago when it accounted for a significant share of the world’s economy. Yet its political system seems to have been caught in a time warp. Ever since the Arab Spring began dominating headlines, there has been renewed speculation that social unrest could foment a similar cascade of change in China. Even Premier Wen Jiabao concluded at last March’s National People’s Congress that dealing with pressures for political reform will be a high priority for the future leadership. But the Bo Xilai affair significantly escalated what is at stake by casting the issue as a conflict between reformers and those wedded to the past. This is now seen as influencing the transition to China’s next generation of senior leaders.

Discussions about China’s political evolution are normally grounded in debates over democratization, military security, and human rights. More attention, however, needs to be given to whether the nature of China’s economic transformation, supported by its unique form of regional decentralization, has contributed to a stalemate regarding political liberalization.

Read the full paper in the SAIS Review.

About the Author

Yukon Huang

Senior Fellow, Asia Program

Huang is a senior fellow in the Carnegie Asia Program where his research focuses on China’s economy and its regional and global impact.

Recent Work

Commentary
Three Takeaways From the Biden-Xi Meeting
- Yukon Huang, Isaac B. Kardon, Matt Sheehan
Commentary
Europe Narrowly Navigates De-risking Between Washington and Beijing
- Yukon Huang, Genevieve Slosberg

Political Reform Economy East Asia China

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie Europe

Commentary
Strategic Europe
How Europe Can Survive the AI Labor Transition
Integrating AI into the workplace will increase job insecurity, fundamentally reshaping labor markets. To anticipate and manage this transition, the EU must build public trust, provide training infrastructures, and establish social protections.
Amanda Coakley
Commentary
Strategic Europe
Can Europe Still Matter in Syria?
Europe’s interests in Syria extend beyond migration management, yet the EU trails behind other players in the country’s post-Assad reconstruction. To boost its influence in Damascus, the union must upgrade its commitment to ensuring regional stability.
Bianka Speidl, Hanga Horváth-Sántha
Commentary
Strategic Europe
Taking the Pulse: Can the EU Attract Foreign Investment and Reduce Dependencies?
EU member states clash over how to boost the union’s competitiveness: Some want to favor European industries in public procurement, while others worry this could deter foreign investment. So, can the EU simultaneously attract global capital and reduce dependencies?
Rym Momtaz, ed.
Commentary
Strategic Europe
Europolis, Where Europe Ends
A prophetic Romanian novel about a town at the mouth of the Danube carries a warning: Europe decays when it stops looking outward. In a world of increasing insularity, the EU should heed its warning.
Thomas de Waal
Commentary
Strategic Europe
Europe Falls Behind in the South Caucasus Connectivity Race
The EU lacks leadership and strategic planning in the South Caucasus, while the United States is leading the charge. To secure its geopolitical interests, Brussels must invest in new connectivity for the region.
Zaur Shiriyev

More Work from Carnegie Europe

Commentary

Strategic Europe

How Europe Can Survive the AI Labor Transition

Integrating AI into the workplace will increase job insecurity, fundamentally reshaping labor markets. To anticipate and manage this transition, the EU must build public trust, provide training infrastructures, and establish social protections.

Amanda Coakley

Commentary

Strategic Europe

Can Europe Still Matter in Syria?

Europe’s interests in Syria extend beyond migration management, yet the EU trails behind other players in the country’s post-Assad reconstruction. To boost its influence in Damascus, the union must upgrade its commitment to ensuring regional stability.

Bianka Speidl, Hanga Horváth-Sántha

Commentary

Strategic Europe

Taking the Pulse: Can the EU Attract Foreign Investment and Reduce Dependencies?

EU member states clash over how to boost the union’s competitiveness: Some want to favor European industries in public procurement, while others worry this could deter foreign investment. So, can the EU simultaneously attract global capital and reduce dependencies?

Rym Momtaz, ed.

Commentary

Strategic Europe

Europolis, Where Europe Ends

A prophetic Romanian novel about a town at the mouth of the Danube carries a warning: Europe decays when it stops looking outward. In a world of increasing insularity, the EU should heed its warning.

Thomas de Waal

Commentary

Strategic Europe

Europe Falls Behind in the South Caucasus Connectivity Race

The EU lacks leadership and strategic planning in the South Caucasus, while the United States is leading the charge. To secure its geopolitical interests, Brussels must invest in new connectivity for the region.

Zaur Shiriyev