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China Emerging_ 1978-2008 - Xiao-bo , Wu [0]

By Root 1241 0
Wu Xiao-bo

Translated by Martha Avery

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ChinaEmerging:1978-2008 WuXiao-bo

© 2009 Cengage Learning Asia Pte Ltd

Chinese original edition © 2008 China Intercontinental Press and China CITIC Press

Publishing Director: Paul Tan

Senior Development Editor: Yang Liping

Associate Development Editor: Tanmayee Bhatwadekar

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Martha Avery

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Printed in Singapore 1 2 3 4 5 12 11 10 09

TABLE OF CONTENTS

Preface VII Acknowledgments IX

The Beginning 1

1978–1983

Deng Opens the Door to the World

Where Will the Money Come from? 12

Shenzhen Special Economic Zone 17

Reform at Capital Steel 22

Shooting Stars in the Countryside 27

Commotion and Tumult33

1984–1992

1984, the “Founding Year” of Major Chinese Enterprises 34

A Two-track Pricing Policy and a Trip to Hainan Island 43

Allowing Prices to “Break through the Pass” 52

Harnessing and Rectifying 57

VI Table of contents

Radical Dreams 69

1993–1997

Ruling over Chaos with an “Iron Wrist”

Price Wars

Becoming One of the Fortune 500

Unexpected Changes

Swamps and Landmines 99

1998–2002

Some Hairpins 100 Market Manipulators and the Problematic Stock Market 108

Fly Over the Rainbow 115 The China Threat 123

Responsibility and Reason 129

2003–2008

SARS, Housing Bubbles, and Electricity Panic 130

Trade Frictions 137

Internet Economics 149

Rise of a Great Nation 155

Crossroads 162

Index 168

P R E FAC E

I

am always amazed by the power of perception, that is, by the power of what people perceive things to be. History is a succession of mental images linked by time. Years later, when people recall an era, it is the images that float to mind, those classic moments of a bygone age.

My intention in writing this book has been to extract certain moments and present them as keys to the events that took place in China over the past thirty years. In the last four years, I have written a two-volume book that narrates China’s evolving reality from a business or commercial perspective. This book is a condensed version of those two volumes, and I have also added 250 photographs.

The thirty years from 1978 to 2008 have marked a period of rapid economic ascent for China. China’s abrupt emergence may indeed be the most notable phenomenon in global economics during these decades. Today, as I thumb through the photographs, I am yet again astonished at the changes in China—the photographs tell the story no less starkly than does the text. I say to myself, “Is this really the same China? Did we really do this?” From the photograph showing the blood-red fingerprints of farmersinthevillageofXiaogang,pressedontoadocumentdeclaringtheir determination, I can feel the distress and the resolve of ordinary people. From the image of students at Tiananmen Square unfurling a banner of “Hello Xiaoping!” I can almost hear

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