April 12, 2011: Christopher A. McNally

Rebalancing China's Political Economy

(Click to enlarge) From left to right: Dr. Mark Borthwick, director of the US Asia Pacific Council, and Dr. Christopher A. McNally discuss China's political economy.



Presentation Materials:

McNally PowerPoint

WASHINGTON, DC (April 21, 2011) -- For more than thirty years, China’s development model has relied on the extensive use of production factors which have been relatively abundant in China, especially labor, land, certain natural resources, and in the 2000s, increasing amounts of capital. However, according to Dr. Christopher A. McNally, this strategy, which created an export and investment-driven pattern of development and a consequential pattern of industrialization, must inevitably come to end.

In the opinion of the speaker, the recently released 12th Five-Year Plan demonstrates a "distinct seriousness on the part of the Chinese government to really do something about what is an unbalanced and ‘GDP-growth-addicted’ model of developing the economy. He added that the new policies will focus on centralization, standardization, and regulation under state guidance. Such state-capitalist policies will also strive to simultaneously strengthen the state, society and economy. The new growth pattern will focus on moving China towards a domestic consumption-based pattern, centralizing government profits so that they can potentially be redirected towards social welfare services and the infrastructure needed to ameliorate social imbalances, such as the rural-urban imbalance.

Christopher A. McNally is the director of the China-US Relations Program at the University of Hawaii-Hilo and a nonresident fellow at the East-West Center. As a political economist studying the interests, institutions and ideas underlying formations of capitalism, his research focuses on the nature and logic of Sino-capitalism, a form of capitalism with global reach that is reshaping the global order. Previously, he has held fellowships, conducting fieldwork and research, at the Asia Research Centre in West Australia, the Institute of Asia Pacific Studies at the Chinese University of Hong Kong and at the Shanghai Academy of Social Sciences. Dr. McNally has edited four volumes, including an examination of China’s political economy, China’s Emergent Political Economy – Capitalism in the Dragon’s Lair (Routledge, 2008). Additionally, he has published many book chapters, policy analyses, editorials, and articles in journals such as Business and Politics , Asian Affairs , Communist and Post-Communist Studies and Comparative Social Research. Dr. McNally received his Ph.D. in political science from the University of Washington in Seattle. ###