Economic, Social, Political and Legal Transition in China

Abstract

China’s managed transition started with the economic and moved to the legal and social spheres. The “socialist market economy” deideologized economic activity and ownership. Private entrepreneurship was encouraged but remained under the constitutional authority of the Chinese Communist Party. The further success of political and economic transition depends on how central and decentralized forces balance one another off. In the interaction between regions and growth centres, those with a strong social component fare better. Decentralization is to the advantage of some groups, but it can protect vulnerable groups less. Industrial relations systems need to strengthen a consensus on the role of trade unions, employers and government. Representative systems should be developed further, with delegation of authority and accountability by those to whom authority is delegated.