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Extra info for The Political Economy of China’s Changing Relations with Southeast Asia

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For over two decades China had developed under the radical Maoist strategy, with politics and ideology taking precedence over economics and with revolutionary fervour and mass movements dominating every aspect of economic life. The idea that orderly economic progress, based on careful planning and rational management, and appropriately moderated by market incentives and international economic forces, is still alien to many cadres and bureaucrats at the medium and the grassroots levels, and in fact to the whole generation of somewhat confused Chinese youths who had been brought up under totally different life experiences.

By comparison, ASEAN is more worried over the increased competitive pressures created by China's attempt to enlarge its market shares for manufactured exports in the industrial countries. 12, the present volume of Chinese exports to the industrial countries is conspicuously small, particularly in the US market. As China's modernisation proceeds, Chinese demand for capital equipment and technology from the industrial countries will grow and this eventually may lead to a larger market share for Chinese products in these advanced countries.

The period of reform and readjustment had to be extended, apparently because the Chinese economic planners and technocrats had now found the problems facing China were far worse than they had originally expected. The constraints were not just confined to the structural defects of the economy but also operated in a wide political and social context. For over two decades China had developed under the radical Maoist strategy, with politics and ideology taking precedence over economics and with revolutionary fervour and mass movements dominating every aspect of economic life.

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