Two Societies In Opposition: The Republic Of China And The People's Republic Of China After Forty Years
This is a solid collection of essays on Taiwan and China resulting from a conference at the Hoover Institution in 1989. There are three perceptive and rather pessimistic essays on the People's Republic. Tom Gold of Berkeley writes about the "schizophrenic" picture of the climate for private business in China. The state has introduced a number of reforms to encourage private business but, in practice, authorities at all levels show ambivalence, if not outright hostility, toward the private sector, especially in urban areas. Harry Harding, in a useful overview of Chinese politics during the past 40 years, concludes that the immediate prospects are for a relatively weak central government alienated from large segments of society, with limited control over the provinces and deep cleavages in its own ranks. Nicholas Lardy, a prominent specialist on the Chinese economy, says that China's reforms remain "partial," and "far less market-oriented" than those of other socialist states. He stresses the increasing power of provincial and local governments that, he says, is incompatible with market reform.
Related
The Republic of China (R.O.C.) has a unique international personality. It was a founding member of the United Nations, yet since 1971 it has not been a member state of the U.N. or of any of its specialized agencies. It has scored impressive successes in political, economic and social development and in science and technology--indeed, the R.O.C. today is ranked as one of the most developed of the developing countries. Yet it has been asked to leave the World Bank, the World Health Organization, UNESCO, the International Atomic Energy Agency and other international organizations. The R.O.C. even faces the danger of losing its membership in the Asian Development Bank.
Can Mao or the inheritors of Mao's authority entertain the possibility of some "separateness" for any Chinese within his egalitarian One China world? The answer to this question will influence Peking's attitudes toward peaceful coexistence with Taipei, intellectual and cultural diversities at home, and possibilities for future organization of China's economic system.
China may be the most important country in America's future. Its power is undoubtedly on the rise, and Washington must give it due regard. U.S.-China relations have recently made great progress, particularly on trade-related issues. But the relationship is fraught with tensions that could explode into conflict at any time. The next administration needs to get China policy right, before disaster strikes.

Sign-up for free weekly updates from ForeignAffairs.com.