China And The Challenge Of The Future; China's Foreign Trade Reforms; China's Modernisation: The Strategic Implications For The Asia-Pacific Region
Hamrin's book, based on interviews in China from 1985-87, plus a decade of experience in analyzing Chinese politics, displays a rare mastery of Chinese politics, decision-making processes and elite conflicts. There are rich insights into the origins of the systemic crisis of 1989. She discusses what she calls the two waves of reform (1979-82 and 1983-84) and the failure of the third wave in the year or two preceding Tienanmen Square. John Hsu explores the impact of the reforms on foreign trade and concludes that further reform of foreign trade is now dependent on further revisions in the economic system, particularly in prices. Klintworth stresses China's growing military power-particularly its growing naval reach. The next decade will see China's largest and most ambitious naval expansion since the Ming Dynasty.
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Forecasts the emergence of an international order based on 'civilian powers', defined as states dependent on economic co-operation, supra-national structures, and primarily economic (rather than military) means of defending the national interest. A discussion of the potential of the FRG and Japan as such powers.
The Asian financial crisis had a side benefit: prodding the Japanese government to fix its economy. But as the sense of urgency eased, so too did the momentum for change. The Liberal Democratic Party, never a true champion of reform, now blocks deregulation from every angle. Wasteful public spending has created little but debt. And the public's trust in its government is all but gone. Recovery would require Japan's politicians to give up the many benefits of the status quo, which they will not do without a fight. So Japan's reforms are stalled permanently. Its economy is, too.
The Japanese economy of old -- coddled by an overbearing government and riddled with corruption -- is dying. Today Japan is undergoing nothing short of an economic revolution. No longer able to count on bailouts, banks are restructuring. Companies are putting profits ahead of personal loyalties. Reforms are breathing life into decayed industries. And the climate for foreign investment is better than ever. The most important force for change is the wave of small, creative, high-tech companies that have built Japan's very own Silicon Valley. The government's lackluster economic stewardship is no longer important. The state is not driving today's revolution; business is.

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