China After Mao

August 15, 2022
University of Hong Kong historian Dikötter (the People’s Trilogy) debunks the myth of China’s miracle economy in this expert study. He credits Deng Xiaoping’s “Reform and Opening Up” program, which more than doubled industrial growth from 1983 to 1985, with helping to make China a superpower, but notes that “we do not know the true size of the economy, since no local government will report accurate numbers.” He challenges claims that China’s growth signals the country’s march toward capitalism, pointing out that in a true capitalist economy, capital is subject to rules on rates of return and profit margins, while in China, capital is distributed by state banks to state-controlled enterprises and businesses operate based on meeting a production target, regardless of whether their goods sell or not. Analyzing the regimes of Jiang Zemin, Hu Jintao, and Xi Jinping, Dikötter paints a picture of continuous market manipulation, including the fixing of exchange rates, the encouragement of intellectual property theft from foreign companies, and the use of child labor. He also documents the crushing of civilian unrest, the scapegoating of the West for economic problems, and the existence of a shadow banking system riddled with massive debts. Extensively researched and cogently argued, this is a must-read for China watchers. Agent: James Pullen, Wylie Agency.