China and the Dangerous Shoal of Reform
REDEFINED ASIA by David J. Karl | on September 16th, 2013 | Two recent news items out of China have raised expectations that the new leadership in Beijing intends to push ahead with major market-oriented policies. The first is an announcement that a key Communist Party conclave will gather in November to set out an economic blueprint for the coming decade. The second is that Jiang Jiemin, the head of the commission overseeing the sprawling array of state-owned companies, has been sacked for corruption. Since these well-connected firms have stymied key economic reforms in the past, some view the move as an attempt to bring defenders of the status quo to heel in the ramp-up to November’s meeting. The country is at a significant inflection point, one that the most ardent proponents of the “China rising” narrative (examples here , here and here ) failed to see coming. With the econom...