Lecture 2

Question 1

Japanese domination & civil war

Answer 1

1900-1950

Question 2

Neolithic China

Answer 2

Early settlements 6000BC
Myths and heroes 2400BC
Xia Dynasty 2100-1600BC

Question 3

Ancient China

Answer 3

Shang 1600-1050BC establish writing, religion/tradition, centralised state
Western Zhou 1050-750BC the ancient golden age
Eastern Zhou 750-256BC politically tumultuous but philosophically active include the founders of six great schools of thought

Question 4

What were the 6 great schools of thought

Answer 4

Confucianism: follow tradition and hierarchy, including Mencius
Daoism: laozi taught inaction, non intervention, everything is connected, according to zhuangzi, everything is relative/changing
Legalism: inspired by Confucian Xunzi and Daoists, humans are bad and need laws; strict use of incentives for all; strict rule of law
Naturalism: yin-yang, understand nature in order to win
Mohism: treat society as your family; paleosocialism, technocratic.
Logicians: evolution of Mohism into a debating society

Question 5

Middle Kingdom - classical

Answer 5

Qin 221-207 BC unified China under huangdi
Han 206BC-220AD golden age, Silk Road, collapsed into many
Sui 589-618 reunification and population growth
Tang 618-907 another golden age, collapsed into many
Song 960-1279
Yuan 1271-1368 established after Mongolian invasion. War with song. Widespread use of paper money, eventual hyperinflation and crisis.
Ming 1368-1644 early internationalism, global influence and tributes. Later isolationism though. Refused foreign trade.
Qing! 1644-1911 lead by Manchus

Question 6

Traditional economy

Answer 6

Agriculture based, 90% living in countryside

Agricultural technology - selected seed varieties, organic fertiliser, irrigation

Question 7

Population growth 1400 to 1820

Answer 7

70mil - 380mil
0.4% growth rate
36% of world population

Question 8

Traditional economy living standards

Answer 8

Stable until early 1800s
Close to average living standards
1/3 of world GDP in 1820

Question 9

Sophisticated institutions of historical China

Answer 9

Institutional economics
Courts
Written contracts for both business and life
Firms and organisation based on lineage and clans
Banks
Use of middlemen
Competitive markets
Social mobility for moving up the social order

Question 10

Describe the small scale economy

Answer 10

Agriculture: no large land estates; based on individual, small scale households

Non agriculture production: mostly small scale, done by households.

Village and household based

Question 11

Describe the century of humiliation

Answer 11

Failing Qing dynasty compared to Europe

Triple threat:
Europe: threat to culture, trade and dignity, seeking to impose a new world order that was incompatible with the idea of Chinese exceptionalism.
Russia: also refused to assimilate to Chinese culture, more looking for land
Japan: wanting territory and to replace China as the dominant force in Asia, existential threat to the dynasty

Question 12

Chinese strategy against barbarians

Answer 12

Using barbarians against barbarians

Russia & Japan fought wars for influence in north eastern China and Korea.

Question 13

Century of humiliation lost wars

Answer 13

Two opium wars
Permanently lost territory to Russia including Mongolia and parts of Central Asia
Europeans controlled various towns and trading ports
Japan takes Taiwan in 1895, dalian in 1905 and Manchuria in 1932

Question 14

List internal rebellions

Answer 14

1850-1864 taiping rebellion
1856-1877 Muslim rebellion in the west
1852 workers rebellion in central China

Question 15

Qing economic challenges

Answer 15

Government failures - declining reserves of food, lack of stability and central authority
Depreciation of infrastructure and the environment - deteriorating irrigation networks
Population growth (Malthusian theory)

Question 16

Malthus population critique

Answer 16

Argued that population growth would tend to exceed food production, resulting in occaisional wars of famines.
In China population growth became and increased burden on relatively fixed resources.
1928-1931 two million people died in catastrophic famine after three years of consecutive drought

Question 17

Qing inequality

Answer 17

Income inequality
Between gentry and everyone else
When comparing China with the west
Many poor farmers lineage extinguished, creating incentive for rebellion.
Population was vulnerable at the time

Question 18

Republican revolution

Answer 18

Wuchang uprising in 1911 by sun yatsen
Qing military leader yuan shikai defected to the republicans and negotiated end of Qing dynasty in exchange for being made president.
Then Yuan tried to establish a new Chinese empire which gathered little support.

Question 19

Warlord era

P

Answer 19

Shifting coalitions of competing provincial military leaders
May 4th movement of 1919
1921 sun yatsen tries to unit China with help from USSR and CCP, dies beforehand.
Chiang kaishek takes over

Question 20

KMT

Answer 20

1926-27 Chiang unifies most of China, then breaks ties with society and backflips on the communists, which started the KMT-CCP civil war

Question 21

Early industrialisation

Answer 21

1912-1937
Tiny base of modern factory production. Grew at 8-9% annually between 1912-1936, by 1933 had 1 million workers.
Mostly textiles and tobacco.
Concentrated in treaty ports.

Question 22

KMT-CCP-Japan war

Answer 22

1931 Japan invades Manchuria and forms puppet state under former emperor Puyi who was a massive turncoat

KMT-CCP team up and tried to beat Japan while still fighting each other. Japan didn’t leave until they were defeated in WW2

After that the KMTCCP war kept going till communists won and KMT retreated to Taiwan.

Question 23

War economics and inflation

Answer 23

War years 1937-1949
Before the war the government role in the economy was small, wartime pressures led to increase in state intervention.
Gov wanted to build military industrial capacity so they ran government sponsored development.
State run firms accounted for 70% of capital and 32% for labour.
The reason for inflation is they tried to print more money to pay for the war. This accelerated inflation and hyperinflation and caused KMT to lose support.

Question 24

Stalinist China

Answer 24

Collectivisation of the economy
Korean War and Taiwan conflicts against USA
100 flowers moment &a anti-Rightist campaign

Question 25

1960s death and terror

Answer 25

Great Leap Forward & mass starvation Conflict on all sides including India and soviets Cultural revolution, Maos little red book and chaos and reeducation

Question 26

1970s pivot to America

Answer 26

Henry Kissinger and Zhou Enlai US recognition of PRC as the official China Death of Mao & rise of the moderates

Question 27

Early history of Chinese communist party

Answer 27

Early on backed by soviet communists, set up Chinese soviet republic in 1931 Extended civil war against KMT which was interrupted by ww2 After CCP victory there were mass executions of landowners and counterrevolutionaries.

Question 28

Korean War 1950-1953

Answer 28

North Korea invaded South Korea with the implicit approval of the Soviet Union but it was left to China to provide military support North nearly defeated south; USA and allies entered the war and defeated North Korea China subsequently entered the war and fought the IS to a stale mate back at the original north south border.

Question 29

First Taiwan Crisis

Answer 29

1953 US withdrew navy from Taiwan PRC launches artillery attacks on Taiwanese islands Results in closer US-Taiwan coordination and China agreeing to stop attacks

Question 30

100 flowers and anti rightist campaign

Answer 30

Anti flowers 1956 and anti rightist 1957 Encouraged academics to say what they thought and targeted individuals for having the wrong views. Persecution of 1/2 million people mostly intellectuals.

Question 31

Second Taiwan crisis

Answer 31

1958 Chinese artillery and air attacks on Taiwanese islands, Taiwan responds with superior weapons and US support, soviets pledge support to China if needed. Attacks mostly stopped in October 1958

Question 32

Khrushchev and Mao

Answer 32

1956 Khrushchev denounces Stalin and Mao sees it as a betrayal of revolution 1957 Khrushchev calls for peaceful coexistence with west while Mao argues no. 1959 final meeting between the two

Question 33

Post war economy

Answer 33

War damage and destruction of industrial capital and deterioration of agricultural infrastructure including irrigation were serious and crippled economy At the end of the war the soviets took abu t half the industrial machinery of Manchuria 45% of land was violently redistributed Helped CCP gain support from people who would receive free land

Question 34

Soviet economic model

Answer 34

After 1949 the PRC followed soviet inspired development strategy Government controlled economy and pumped resources into new factories They restricted consumption goods and forced high savings Soviets assisted with technology and organisational designs and technical assistance and advice in all fields.

Question 35

Command economy

Answer 35

Government owned all large factories and stuff, agricultural collectives took over ownership of the land and management of farm economy. Planners assigned production targets to firms and directly allocated resources and goods among different producers. Careers determined by leaders in the CCP

Question 36

Political instability under Mao

Answer 36

Mao repeatedly changed economic policies sometimes portraying them as part of a political struggle against opponents. Utopian politics - incentive to attribute failure to enemies or that communism hadn't been implementing it properly. This results in Unity spiral where previous failure is used as justification to pursue more extreme versions.

Question 37

First five year plan

Answer 37

1953-57 Increase public ownership 1956 first year of China operating as a fully socialist economy Agriculture reform - by 1956 98% of land was collectivised Factory reform - turned into cooperatives or joint public private in 1956

Question 38

Great Leap Forward

Answer 38

Industrial development - goal to surpass Britain in three years and catch America A vision rather than a plan Resolving contradictions by doing everything simultaneously regardless of resource constraints. Destruction of agriculture, workers drawn out of agriculture to work in factories and backyard steel mills. Countryside collectives combined into communes, required to meet unrealistic targets.

Question 39

Social and economic Changes during Great Leap Forward

Answer 39

State run education and cultural enterprises Communal dining halls Childcare facilities and mass poetry writing sessions Increase in industrial and decrease in Agri Low quality output due to lack of incentives Lack of accurate price signals

Question 40

Consequences Great Leap Forward

Answer 40

1960 mass famine due to insufficient agricultural output Most severe in inland provinces By 1961 25-30 million deaths Resulted in economic decentralisation and experimentation in provinces due to no central gov, more successful than shock therapy

Question 41

War and conflict in the later years

Answer 41

China Indian war 1962 dispute over Himalayan border. Stalemate. Final split with Soviet Union because they sided with India

Question 42

Cultural revolution 1966-1969

Answer 42

Goal was to destroy traditional Chinese culture Remove the four olds: old ideas old culture old customs old habits Students who joined the red guards were above the law and education system shut down Mao believed in continuous revolution

Question 43

Growing American interest in China

Answer 43

JFK suggested an open mind regarding China in1957 China didn't want help Nixon in late 1960s - committed to communicating with China once again

Question 44

Strategic interest in America

Answer 44

Soviet threat and possible invasion

Question 45

Setting the scene for the pivot to America

Answer 45

Subtle diplomacy through Romanian and Pakistani back channels, ping pong diplomacy 1971 secret mission by Kissinger to meet Premier Zhou Enlai which resulted in lasting friendship

Question 46

Nixon to China

Answer 46

1972 Nixon goes to China The week that changed the world weakening the strategic position of the Soviet Union and preparing the ground for future Chinese liberalisation

Question 47

Political factions in China in the later years

Answer 47

Military faction and 1971 attempted coup organised by son of Lin Biao. Radical factions - the Gang of Four controlled media and politics Moderates factions - Zhou Enlai and Deng controlled the bureaucracy.

Question 48

1970s economy

Answer 48

Return to normal socialism. But this time focused on military spending and health and education spending. 2/3 population literate by 1982. Usual problems of the planned economy still occurred. Hints of reform by Enlai and Deng

Question 49

Philosophical shift under Deng

Answer 49

``` Switched from planned economy to mixed market Claimed it is "market socialism" Privatisation deregulation tax cuts Export oriented SEZs. They pursued reform gradually. ```

Question 50

Tiananmen Square incident

Answer 50

1989 Students protested about corruption inflation and lack of democracy Intially tolerated but protests were suppressed.

Question 51

Jiang Zemin

Answer 51

1992-2002 | Continued reform and economic development

Question 52

Hu jintao

Answer 52

2002-12 China becomes 2nd biggest economy and deals with a Great Recession Hosts olympics Housing boom for half a million people

Question 53

XI JINPING

Answer 53

More assertive Conflicts with Japan and ASEAN Proactive foreign policy with trade deals and belt and road initiative Removal of term limits so he can be president for life

Question 54

Reforms since 1979

Answer 54

Agriculture - from communes to family farms Growth of private industry International trade and special economic zones Ongoing reform in financials sector fiscal policy and the future

Question 55

Story of Deng

Answer 55

Loyal and skilled diplomat during rise of Mao 1966 purged in cultural revolution 1974 recalled to power to replace Zhou Enlai as the head of government. Starts to promote importance of innovation and individual initiative and opening up to the world 1976 purged after praising Zhou Enlai 1977 death of Mao prompted Deng to return to position of power 1978 while Hua remained nominally in charge Deng xiaoping was effectively the ruler of China for the next 14 years

Question 56

Disagreement hua and Deng

Answer 56

Hua wanted socialism and Deng didn't | Deng wins

Question 57

General strategy of Deng

Answer 57

Innovation education and individual effort Opening to the world and learning from foreigners Crossing the river by feeling the stones It doesn't matter if a cat is black or white so long as it catches mice Poverty is not socialism. To be rich is glorious

Question 58

How Tiananmen incident start

Answer 58

Liberal democrat and close ally of Deng dies of heart attack Mourning becomes protest Government made up of traditional socialists, couple of liberal democrats, moderates who wanted economic reform but not political

Question 59

First reforms

Answer 59

1978, 18 local farmers agreed to break the law and divide the land between them and let each family keep what they produced. Productivity rose immediately and other villages copied Eventually government revised family farms were preferable to communal farms and began policy reforms State targets lowered and stabilised, price controls relaxed. more productive

Question 60

Dual track system ended when

Answer 60

1993 when state controlled resources were phased out

Question 61

Reducing government spending

Answer 61

State spending dropped from 33.8% in 1978 to 10.8% in 1995

Question 62

Tariff reform

Answer 62

Initially tariffs increased as part of their strategy to convert non tariff barriers into tariff barriers. Then steadily decreased tariffs

Question 63

When did China join WTO

Answer 63

2001 they joined but not before they reformed

Question 64

Tax rates for China

Answer 64

Company tax rate 25% Top personal income tax rate 45% Income tax rate for average wage 25% Sales tax rate 17%

Question 65

Walrasian economists

Answer 65

LEDERER LANGE AND LERNER argued that economic planning had worked well during the war and could resolve many of the failures inherent in the market system. Conventional wisdom sided wine walrasians at the time (1930-40s) in the socialist calculation debate

Question 66

Austrian economists

Answer 66

Mises and Hayek argued market failrues existed but claimed markets are better than state planning because market prices provide better incentives and convey information across different industries.

Question 67

Western domination and the collapse of the Qing dynasty

Answer 67

1820-1900