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No.029,Nov./Dec., 2002
Internationalizing China: Domestic Interests and Global Linkages
By David Zweig. Ithaca, N. Y.: Cornell University Press, 2002. 291 pp.
In Chinese
The process of internationalization in China began decades ago, and has been studied
thoroughly by scholars because of the size of the country, its huge population and the
entrenched Communist regime that has resisted pressure to open its vast market and switch
from an authoritarian, state-controlled economy to an open Western-style market economy.
China has become internationalized even though the degree to which it has opened up is
disputed. But judging from available statistics, China's economic growth and foreign
trade volumes have remained steady over the years and the country is becoming an
economic power. What has happened since the time Deng Xiaoping decided to open China
to the outside world in 1978 is explored by Davis Zweig, who brings a vast understanding
to the way Chinese authorities deal with Western transnational corporations, non-governmental
organizations (NGOs), United Nations agencies like the UN Development Program and the UN
Children's Fund, international banking institutions and foreign companies that want to do
business with Chinese.
The term internationalization applies to China because of its past planned socialist
economy and refusal to open its market. Such a situation does not exist in many other
Asian countries that have gradually and easily adapted to open market policies and
demands. China has expanded its flows of goods, services and people across national
boundaries in volumes that have surpassed other countries with already well established
in market economies. It has lowered trade barriers, struck down regulatory controls,
and most importantly, it has convinced the entrenched bureaucracy to abide by the
demands of an open market. Corruption is rampant and fighting among bureaucrats for a
piece of the pie are daily scandals reported by the national media.
Zweig explains the internationalization process from the rural to the coastal areas
and how Chinese officials take the critical decisions that launched that process,
which he says is determined by the power of the global markets, the domestic institutions,
government policy and the spirits of local entrepreneurialship.
Despite the strong desire to open up to the outside world and incorporate the massive
inflow of foreign direct investment (FDI) and funds from overseas development assistance
(ODA), Chinese authorities have maintained control over the use of such funds. China has
created counterpart agencies to deal successfully with NGOs, UN agencies and foreign
corporations. The flows of international aid may have slowed down considerably after
the massacre at Tiananmen Square in Beijing in 1989, but they have rebounded in greater
proportions. China's accession to the World Trade Organization has, to some degree,
sealed that country's internationalization process.
"As the new millennium dawns, foreign forces in the form of ODA play a more aggressive
role in China, pushing for the adoption of new global norms," David Zweig writes. "It
has been a winding road, but international forces, encouraged by local demand, have
pushed China into a more interdependent, more market-oriented global system."
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