{"id":22491,"date":"2013-10-10T08:53:22","date_gmt":"2013-10-10T13:53:22","guid":{"rendered":"http:\/\/quotulatiousness.ca\/blog\/?p=22491"},"modified":"2013-10-10T08:55:21","modified_gmt":"2013-10-10T13:55:21","slug":"qotd-micro-economics-with-a-chinese-twist","status":"publish","type":"post","link":"https:\/\/quotulatiousness.ca\/blog\/2013\/10\/10\/qotd-micro-economics-with-a-chinese-twist\/","title":{"rendered":"QotD: Micro-economics with a Chinese twist"},"content":{"rendered":"

China’s great economic renaissance began when Deng Xiaoping said that creating a modern China required “opening and reform.” Xiaoping hedged on the precise definition of “opening and reform.” In 1989 he sent tanks and infantry to Tiananmen Square to demonstrate that the process had severe limitations.<\/p>\n

But micro-economic innovation? Xiaoping sought a micro-economic revolution. Xiaoping wanted Chinese entrepreneurs to fulfill what economist Joseph Schumpeter dubbed the entrepreneur’s function: “to reform or revolutionize the pattern of production.” The micro-economic opportunity, however, came with the Tiananmen restriction: The Party must remain supreme.<\/p>\n

China’s first-generation entrepreneurs of micro-economic innovators pulled it off. In 1980 China had a GDP of about $190 billion. In 1998, the year after Xiaoping died, China’s GDP topped $1 trillion. In 2013 China has the world’s second largest economy, with a GDP of over $7 trillion.<\/p>\n

Wei Gu is The Wall Street Journal<\/em>‘s “China Wealth and Luxury editor” — and in 1980 who’d have predicted that job? In a recent article titled “China’s Second-Generation Entrepreneurs A Different Breed,” Gu reported that the “foreign educated” children of Chinese entrepreneurs are not enthralled with “the endless wining and dining of government officials that is necessary to do business in China.” In China, since personal whim still trumps law, businesspeople must constantly curry favor with government officials. It amounts to micro-economic lobbying.<\/p>\n

Austin Bay, “China’s Toughest Economic Problem Is Political”, Strategy Page<\/em><\/a>, 2013-10-8<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

China’s great economic renaissance began when Deng Xiaoping said that creating a modern China required “opening and reform.” Xiaoping hedged on the precise definition of “opening and reform.” In 1989 he sent tanks and infantry to Tiananmen Square to demonstrate that the process had severe limitations. But micro-economic innovation? Xiaoping sought a micro-economic revolution. Xiaoping […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22,25,41],"tags":[363,727],"class_list":["post-22491","post","type-post","status-publish","format-standard","hentry","category-china","category-economics","category-quotations","tag-corruption","tag-cronycapitalism"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2hpV6-5QL","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/22491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/comments?post=22491"}],"version-history":[{"count":2,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/22491\/revisions"}],"predecessor-version":[{"id":22493,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/posts\/22491\/revisions\/22493"}],"wp:attachment":[{"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/media?parent=22491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/categories?post=22491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quotulatiousness.ca\/blog\/wp-json\/wp\/v2\/tags?post=22491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}