slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
How Internal Politics Influenced the Opening-Up Policy in China: Lessons from a Case Study of the Xiamen Special Economi PowerPoint Presentation
Download Presentation
How Internal Politics Influenced the Opening-Up Policy in China: Lessons from a Case Study of the Xiamen Special Economi

Loading in 2 Seconds...

play fullscreen
1 / 30

How Internal Politics Influenced the Opening-Up Policy in China: Lessons from a Case Study of the Xiamen Special Economi - PowerPoint PPT Presentation


  • 103 Views
  • Uploaded on

How Internal Politics Influenced the Opening-Up Policy in China: Lessons from a Case Study of the Xiamen Special Economic Zone. SHIMONO, Hisako (The University of Kitakyushu). Sections. 1. Introduction 2. Expansion of the SEZ 3. Taiwanese Begin to Visit Xiamen

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'How Internal Politics Influenced the Opening-Up Policy in China: Lessons from a Case Study of the Xiamen Special Economi' - denali


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

How Internal Politics Influencedthe Opening-Up Policy in China:Lessons from a Case Study ofthe Xiamen Special Economic Zone

SHIMONO, Hisako

(The University of Kitakyushu)

sections
Sections

1. Introduction

2. Expansion of the SEZ

3. Taiwanese Begin to Visit Xiamen

4. Direct Cargo Ship Lines to Taiwan

5. Statistics and Concluding Comments

1 1 introduction
1-1. Introduction:

China’s Economic Reform and the Opening-Up Policy ⇐ Delegation of Power to Local Authorities

 ⇒High Economic Growth

SEZ

Shenzhen in Guangdong ⇒Yes

Xiamen in Fujian ⇒No

1 2 shenzhen and xiamen
Shenzhen

Large Scale

General SEZ

More Delegation of Economic Power

Hong Kong Capital

Xiamen

Small Scale

“Export Processing Zone”

Less Delegation

Following Shenzhen’s Experiences

Taiwan

Ethnic Chinese in SE Asia

1-2. Shenzhen and Xiamen
1 3 questions
1-3. Questions
  • What prevented the Xiamen SEZ from achieving economic prosperity?
  • How did local cadres react to the economic and political environment surrounding the SEZ?
  • What kind of political adjustments were taken?
where is xiamen
Where is Xiamen?

Fujian Province

Fuzhou in north,

Xiamen in South

fujian province
Fujian Province

Fuzhou in the north,

Xiamen in the south

1 4 initial conditions of fujian xiamen
1-4. Initial Conditions of Fujian/ Xiamen

Geography: Mountainous Land, Little Plains,

A Long Saw-Toothed Coastline

Economy: Poverty, Less Investment,

Poor Infrastructure

Light Industries

Politics: Frontline to Taiwan

Strong Connection to Overseas Chinese/

Taiwanese

1 5 turning point
1-5. Turning Point

Change in the CCP’s Taiwan policy (Jan.1979)

From “liberalization of Taiwan”

to “peaceful unification of the motherland”

and “three direct links”

Establish an SEZ in Fujian (Xiamen) for making an appropriate environment for unification

Local cadres in Xiamen/Fujian: not so eager to promote the economic reform and the opening-up policy

…because of political remains of the Cultural Revolution in Fujian

1 6 the xiamen sez
1-6.The Xiamen SEZ

Hardship in reality: Poor transportation system

Strong needs for construction capital

⇒Borrow foreign assistance and develop 1.1sq km

Local Cadres: Optimistic → Disappointed

Fujian Province: Intervene in Xiamen SEZ

Equal-size investment in Fuzhou

Central Authority: Limited delegation of economic power

1 7 tripartite relationship
1-7. Tripartite Relationship

The Central Authority

×

×

×

Fujian Province

Located in the Xiamen City

Xiamen City Authority

Administrative Committee

of the SEZ

Xiamen

SEZ

2 1 opportunity to expand the sez
2-1. Opportunity to Expand the SEZ

1984 Deng Xiaoping inspected the Xiamen SEZ

Party secretary of Fujian (Xiang Nan) and Xiamen cadres appeal directly to Deng

Different expectations between the two

Results: expansion of the Xiamen SEZ (131 sq km)

partial “free port policies”(in the future)

*A free access to capital was not accepted

opening of Fuzhou

2 2 increased financial burdens
2-2. Increased Financial Burdens
  • Lack of capital to build infrastructure in the expanded areas in Xiamen SEZ
  • More delegation and policy assistance by the central authority, but little financial support
  • Free port ⇒ less customs revenue in the future

⇒ Xiamen needs more FDI and more opening in the financial sector to raise funds

2 3 deepening conflicts
2-3. Deepening Conflicts

A conflict between the province and Xiamen became deeper over policy intervention and jurisdictions

Internal criticism in Xiamen arose: incapability of local cadres, missing opportunities

3 1 taiwanese visits begin
3-1. Taiwanese Visits Begin

Investment environment became less attractive in Taiwan.

pressure to the Taiwanese authority to relief the “three no’s” policy

In November 1987, the Taiwanese authority allowed Taiwanese people to visit the mainland to see their relatives

3 2 xiamen as a gate to the mainland
3-2. Xiamen as a Gate to the Mainland

In former days: coastal areas of Fujian for smuggling and de facto direct exchanges with Taiwanese fishermen

Since 1987: Xiamen as a main gate for Taiwanese to visit the mainland and do business in China. Xiamen cadres started to take actions to attract investors

ex. Taiwanese investment zones, administrative lines and custom warehouses for the SEZ, building infrastructure, Yitai Yintai policy

3 3 to attract taiwan capital
3-3. To Attract Taiwan Capital

The central authority: to win over Taiwanese investors to the communist side

Delegation of economic power to Xiamen

Making provisions to protect Taiwan investment

Fujian:

Attempts to lure Taiwanese capital into the province

Create two domestic centers

3 4 xiamen missed opportunity to take off
3-4. Xiamen Missed Opportunity to Take Off
  • Without “three direct links,” high production/

distribution costs.

  • Shortage of facilities and infrastructure
  • Many small- and medium-sized Taiwanese-funded enterprises
  • Fail to attract Formosa Plastics Group
  • Insufficient support from the central/provincial authorities

⇒ ineffective utilization of Taiwanese capital

4 1 rising expectations for direct cross strait links
4-1.Rising Expectations for Direct Cross-Strait Links

Improvement of the cross-strait political situation in the early 1990s

⇒ expectations for “three direct links” rose

Private companies expressed interests in Xiamen as a gate for Taiwanese to the mainland

Local governments promoted construction of infrastructure/ making laws

*Xiamen faced to a fierce competition to draw FDI

4 2 a crisis over the strait
4-2. A Crisis over the Strait
  • 1995-1996 the cross-strait tensions escalated

Again, Fujian as a frontline against Taiwan

The CCP government:

- menace the Taiwanese authority with military power

- improve the investment environment for Taiwanese compatriots

Local governments: ask for a peaceful environment for the regional economic development

4 3 after the crisis
4-3. After the Crisis

Xiamen mayor was seriously concerned about difficulties to lure FDI in the near future… because of the competition for FDI and the WTO factor

Last resort for Xiamen’s economy:

Taiwan capital, realization of the “three direct links”

The Central authority’s political (not military) pressure to the Taiwanese authority

4 4 establishment of cross strait direct cargo shipping lines
4-4. Establishment of Cross-Strait Direct Cargo Shipping Lines

The restoration of Hong Kong to the PRC (July1997)

 ⇒ pressure to the Taiwanese side

…through informal consultative meetings…

Finally, direct cargo shipping lines between Xiamen and Kaohsiung began in April 1997

⇒ It aroused expectations of stimulating the local economies

*regional economies were too small in scale, cautious attitude of the Taiwan authority, the cross-strait political tensions increased again

5 1 from statistics fdi inflow into xiamen
5-1. From Statistics:FDI Inflow into Xiamen

Source:Judy Howell (2000), "The Political Economy of Xiamen Special Economic Zone," in Y.M.Yeung and David

K.Y.Chu eds., Fujian: A Coastal Province in Transition and Transformation, The Chinese University Press.

5 2 from statistics fdi inflow into xiamen usd100mil
5-2. From Statistics:FDI Inflow into Xiamen (USD100mil.)

Contracted amount

Actually utilized amount

Source:Judy Howell (2000).

5 3 from statistics taiwan funded investment in xiamen
5-3.From Statistics:Taiwan-Funded Investment in Xiamen

Source:Xiamen shi difangzhi bianji weiyuanhui bian (2004), Xiamen shi zhi: diwuce (The Annals of Xiamen City: No.5), Fangzhi chubanshe,

Fujian Jingji Nianjian Bianji Weiyuanhui, Almanac of Fujian’s Economy, Fujian Jingji Nianjian Chubanshe( The Year of 1988 and1989.

5 4 from statistics taiwan funded investment in xiamen us 10 thousand
5-4.From Statistics:Taiwan-Funded Investment in Xiamen(US$10 thousand)

Actually utilized amount

Contracted amount

Source:Xiamen shi difangzhi bianji weiyuanhui bian (2004), Xiamen shi zhi: diwuce (The Annals of Xiamen City: No.5), Fangzhi chubanshe,

Fujian Jingji Nianjian Bianji Weiyuanhui, Almanac of Fujian’s Economy, Fujian Jingji Nianjian Chubanshe( The Year of 1988 and1989.

5 5 from statistics number of taiwanese investment on the mainland contract basis
5-5.From Statistics:Number of Taiwanese Investment on the Mainland (Contract basis)

Source: Lin Zhanghua (1995

5 6 from statistics taiwanese investment on the mainland contract basis us 100 mil
5-6.From Statistics:Taiwanese Investment on the Mainland (Contract basis : US$ 100 mil.)

Source: Lin Zhanghua (1995), “Lun Taiwan de Daowai Touzi: Jianlun Zhongguo Dalu Xiyin Taizi Wenti,” (Arguments

Regarding Taiwan’s Out-of Island Investment: Including Arguments on the Issue that the Mainland Attracts Taiwanese

Capital), Xiamen Daxue Xuebao, Zhesheban (The Bulletin of the Xiamen University: Philosophy and Social Sciences),

No.2.

5 7 concluding comments
5-7. Concluding Comments
  • Initial conditions of Xiamen made the construction of the SEZ difficult
  • The Taiwan factor as the largest obstacle
  • Different views and interests among the central authority, the province, and Xiamen
  • Passive attitude of the Xiamen cadres
  • This case study suggests:

Internal politics operated in the process of economic development

Internal fragmentation of China

slide30
Thank you very much

for your kind attention!

- END -