China's post-Mao economic reforms have generated rapid and sustained economic growth, unprecedented rises in real income and living standards, and have transformed what was once one of the world's most insular economies into a major trading nation. The contrast between China's transitional economy and those in Eastern Europe and the former Soviet Union could not be more striking. Where the latter struggle with severe recessions and pronounced declines in real income, China has looked more like a sprinting East Asian “tiger” than a plodding Soviet-style dinosaur mired in the swamps of transition. The realization that reform measures and energetic growth continue even after the political crisis of 1989 has made China a subject of intense interest far outside the customary confines of the China field. Understood increasingly as a genuine success story, it is moving to the centre of international policy debates about what is to be done to transform the stagnating economies of Eastern Europe, and various aspects of its case now figure prominently in academic analyses ranging from theories of the firm and property rights to the political foundations of economic growth.

For some developing countries, the international flow of their human talent in the recent decade was more of a “reverse brain gain” than a “brain drain.” China, too, joined the group of states whose students, after studying abroad, now found sufficient opportunity and an acceptable quality of life back home to make returning after graduation a reasonable option. Still, China had not succeeded in bringing back the very best scientists and academics. To remedy this problem, the Organization Department of the Chinese Communist Party became actively involved in the recruitment process. The key programme was the “1000 Talents” Plan, introduced in 2008 by Politburo member Li Yuanchao, who had a visionary perspective on reverse migration. This programme has succeeded in bringing back entrepreneurs full time; but it has not attracted the very best of the Chinese scientists and academics who studied and lived overseas to return fulltime.

The Chinese central-provincial fiscal relationship of the reform era has been at the centre of academic attention in the last few years. It is rapidly becoming one of the most researched areas regarding China. Despite numerous publications, however, there are still some crucial issues that have not been sufficiently elucidated. First, the emphasis of discussions so far has been on formal budgetary relations, particularly the distributive pattern of revenue collection. In reality, the scope and impact of the Chinese budget are very much smaller than those elsewhere and the pattern of revenue collection is only one aspect of the multi-faceted central-provincial fiscal relationship. An appreciation of these aspects and their implications requires a better understanding of the full range of arenas in which the Chinese central government interacts with the provinces over public finance than is currently available. Secondly, it is generally accepted that the Chinese central-provincial fiscal relationship has been decentralized during the reform era, and that this change has underpinned the growing strength of the provinces and the decline in central power. However, the change in the relationship is actually more complex than one-dimensional decentralization would suggest, and the link between fiscal decentralization and political decentralization is less straightforward from a comparative perspective. Thirdly, it is widely accepted that there has been a fiscal decline in China and that the revenue-sharing system – implemented up to 1993 – was the cause of this decline. From this understanding, erroneous conclusions have been drawn. On the one hand, some scholars suggest that this decline signifies a limit on the Chinese state in its relation to the economy, and it is this factor that has underpinned the success of the Chinese economy during the reform. On the other, this decline is considered to epitomize the emergence of a “weak centre, strong localities” situation in China that may eventually lead to the disintegration of the Chinese political system. But it is far from established that there has indeed been a fiscal decline in the true sense of the term. The same can be said on the question of this decline, if it exists, representing the limiting of the Chinese state in relation to the economy or the decline of the central power relative to that of the provinces. Fourthly, in 1994 the Chinese government launched important reforms to the central-provincial fiscal relationship, aiming to replace the previous revenue-sharing system with a tax-sharing system (TSS, or fenshuizhi), and ultimately to stem so-called fiscal decline. Despite earlier reported problems, recent official reports have claimed substantial success of this reform in terms of improvement in the so-called “two ratios” – the ratio of budgetary revenue to GDP, and the ratio of central budgetary revenue to total budgetary revenue. What do these two ratios signify? How should we interpret such success? Does the success on the one hand confirm the allegation that the revenue-sharing system was the cause of the Chinese fiscal decline? And does it on the other hand indicate a strengthening in the centre's power relative to the provinces'?

This paper attempts to explain why education fails to facilitate upward mobility for migrant children in China. By comparing a public school and a private migrant school in Shanghai, two mechanisms are found to underpin the reproduction of the class system: the ceiling effect, which is at work in public schools, and the counter-school culture, which prevails in private migrant schools. Both mechanisms might be understood as adaptations to the external circumstances of – and institutional discrimination against – migrants rather than as resistance to the prevailing institutional systems. Thus, the functioning of these mechanisms further strengthens the inequality embodied in the system.

Over the last decade, there have been numerous reports of rural discontent and unrest over excessive local taxes and fees known as villagers' burdens. In response, the central government enacted the tax-for-fee reform (TFR) in 2002 that abolished local fees levied on individuals and rural households in favour of a single agricultural tax. In addition the central government has announced plans to eliminate the agricultural tax as well after 2006. The aim of the TFR is to streamline local revenue collection and establish a more transparent and efficient provision of services. The immediate result, however, is a dramatic reduction in the autonomy of township governments as well as the provision of local services. Poorer townships have become more dependent on county government for revenues, and these townships function more like county administrative units than local self-governments. Moreover, many services have also been cut due to a lack of local revenues. In north-west China, there has been a sharp decline in the provision of educational and medical services. The solution is an increase in county remittances, but these are slow and uneven, and the combination of reduced autonomy and services has produced a number of “administrative shells” at the township level. If the inefficacy continues, then there may be even greater rural discontent and unrest over the loss of basic services than there was over increasing villagers' burdens.

The development of migrant children schools in Beijing in the 1990s is used here to illustrate the changing state-society relationship in China. These schools emerged as an attempt by individuals to resolve an educational problem resulting from the retreat of the state in enforcing its population policy and its reluctance to educate children of the floating population gathered in the capital. These individuals used their own resources, and harnessed support from other sectors in the civil society as well as from some government units. Even though the local education departments did not take up the responsibility to educate children with household registrations outside Beijing, they did not give the migrant children schools recognition or support. This report traces the manoeuvres, negotiations and other strategies used by these schools to survive, by the different government units at different levels to contain them, and by others to support them. This struggle illustrates the growing heterogeneity inside government and the increasing strength of civil society in China.

Reform has posed a serious contradiction for environmental protection efforts in China. On the one hand, the first decade of reform (1979–89) ushered in a vast expansion of environmental protection institutions, laws and policies, a process which in certain respects continues to this day. On the other hand, the reforms also welcomed the rapid and often unrestrained growth that is responsible for the dramatic erosion of the quality of Chinas environment over the past two decades. The central governments professed concern for the environment and the national measures taken to protect it appeared, by the end of the 1980s, to have slowly caused some improvements in the enforcement of environmental policy. But by the mid–1990s, a renewed burst of economic activity following Deng Xiaopings 1992 Shenzhen trip had combined with another round of administrative reforms in early 1994 to set back these efforts.

In his survey of the field some years ago, Harry Harding noted that the study of contemporary Chinese politics stood then on the threshold of a third generation of scholarship. While the first generation had been limited by the atmosphere of the Cold War and the second had been overly influenced by the Cultural Revolution, Harding held out hope for a third generation able to surpass its predecessors in both substance and theoretical sophistication. Nearly a decade has passed since the publication of Harding's prescient article and in fact such a third generation can now be discerned - distinguished from the first two not only by the prevailing political atmosphere, but also by its theoretical perspective and access to source materials.

China's shift to a net oil importer has generated much speculation outside China about how China's growing dependence on foreign oil will affect its international behaviour. This discussion is framed by two competing models of China's future approach to energy security: one that foresees deeper integration into global energy markets and another that predicts efforts to minimize reliance on these markets in potentially destabilizing ways. Less attention has been paid, however, to the parallel debate unfolding inside China over how to ensure the country's oil needs are met without undermining national security. This article introduces the main participants in the debate, how the debate relates to energy security decision-making, and some of the measures to enhance energy security under consideration. It concludes with a discussion of some of the factors that will shape China's emerging approach to energy security.

At the turn of the century, the Xinjiang Uighur Autonomous Region moved from a phase of accelerated integration by the centre, which typified the decade of the 1990s, to a phase of consolidation of the advances made during this period. The intertwined dimensions of state building and nation building embedded in the campaign to Open Up the West respond to the long-term strategic goal of placating the threat of ethno-nationalist unrest. This “staged development” of Xinjiang reflects in essence a classic process of peripheral territorial integration by the central state. Yet, the dynamics of penetration and resistance between the centre and what still remains an indigenous periphery can be expected to generate at the same time both increased sinicization and increased ethno-national unrest.

This article examines the so-called “central State Owned Enterprise (SOE) problem” in China's environmental governance system, namely central SOEs' defiance of environmental regulation. We present evidence showing that, in the last decade, central SOEs have been the source of a large number of serious pollution incidents and have often failed to comply with environmental guidelines and regulations. Central SOEs in the electricity generation and oil and gas industries are particularly culpable, with six firms alone accounting for 62 per cent of all 2,370 reported violations (2004–2016). We argue that a combination of “central protectionism” of state-owned national champions and insufficient regulatory capacity in the environmental bureaucracy have provided state firms under central management with both incentives and opportunities to shirk on environmental regulations. Yet, while the institutions of central protectionism are deeply rooted, countervailing forces within the complex Chinese state are also gaining momentum. In spite of the considerable regulatory challenges, officials in the environment bureaucracy display increasing resolve and ingenuity in trying to strengthen their enforcement capacity.

This article investigates the interest structure that leads to collective conflicts over the protection of private property in middle-class residential compounds in Beijing. The departure from a work-unit dominated social landscape means that work and residence are now de-linked and the new private residential compounds create communities of consumers, not of producers. Individual status is formed in the context of local socialization patterns in the neighbourhoods at least as much as in the workplace. Based on fieldwork in Beijing's residential compounds in 2002 and 2003, this article highlights the importance of spatial factors in determining the formation of collective interests and argues that the enclosed residential spaces of the gated communities are providing both a catalyst for the autonomous mobilization of collective resources and new social units for the Chinese state to govern an increasingly complex society.

Existing literature on China's urbanization focuses primarily on the expansion of cities and towns, with little attention being paid to urban renewals. The wasteful use of urban land has conventionally been attributed to the ambiguous definition and ineffective protection of property rights. This study examines recent practices in urban redevelopment in Guangzhou – a site chosen by the central authorities to pilot urban renewals (sanjiu gaizao). The research identifies a local practice in which institutional changes are made not in the delineation of land property rights but instead in the redistribution of the benefits to be made from land redevelopment. Current users of the land are offered a share of the land conveyance income previously monopolized by the state as an incentive to encourage them to engage in urban renewal. Land-use intensity and efficiency have increased, along with social exclusion and marginalization. Research findings cast doubt over the perceived notion that the uniform and unambiguous definition of property rights is the prerequisite for improved land-use efficiency and call for a critical evaluation of the current urban renewal policies that completely ignore the interests of the migrant population who outnumber local residents by a large margin.

Official figures show that the total extent of China's farmland has been steadily decreasing since the late 1950s and that it now stands at roughly 95 million hectares (Mha). Divided by 1.243 billion people, China's mid-1998 population total, this prorates to less than 0.08 ha/capita, a rate comparable to that of Bangladesh, equal to only about 60 per cent of Asia's and to roughly 40 per cent of India's mean, and to just 25 per cent of the global average (Figure 1).

Decentralized environmental governance theory suggests that decentralization can produce better environmental performance mainly because lower-level governments are closer to the people and environmental issues and are considered more legitimate than the national government. However, China's decentralized system of environmental governance has been often regarded as a key factor in creating pollution problems rather than in solving them. To explain this puzzle, this article, using Blame Avoidance Behaviour in government theory as a theoretical framework, examines how blame avoidance behaviour shapes China's decentralized system of environmental governance from three perspectives: first, actors and the chain of blame shaped by the hierarchical power structure among environmental policymakers and implementers; second, the strategies of discursive domination and decentralization for blaming environmental problems on local officials; and lastly, the contextual factor of “hierarchical governmental trust.” Drawing on documentary discursive analysis and extensive fieldwork, this article suggests that the dysfunction of China's decentralized environmental governance structure may in fact be an outcome of a blame-shifting game between central and local governments.

Expressions of anti-black sentiment by Chinese students have caught the world's attention periodically since the end of the 1970s. Demonstrations against African students in Nanjing and other cities between late 1988 and early 1989 received wide press coverage. Because the African population in China is small and transient, some observers saw these events as a manifestation of a vestigial xenophobia, not as part of a developing trend of thought within a key segment of Chinese society. Placed next to the brutal ethnic conflicts that plague much of the world, the episodic, non-lethal incidents in China seemed evanescent, with only fleeting implications for China's foreign policy.

This article employs a feminist political economy perspective to explore the connection between e-commerce, entrepreneurship and gender in rural China. It discusses gendered engagement with, and discourses of, the new digital economy represented by Taobao villages, and asks: how has the success of rural e-commerce impacted the evolving gender mandate and hierarchy in a competitive market economy in rural China? Has rural women's participation in digital economic activities changed their gendered roles and the patriarchal structure in their family and village? This article argues that women's socioeconomic enablement does not necessarily translate into cultural and political empowerment. The enabling potential of female entrepreneurship is tempered by traditional constraints on women and digital capitalist exploitation of their cheap, flexible and docile labour.

2010 was a turbulent year for labour relations in China. The wave of strikes sparked by the Honda workers has highlighted the urgent need for trade union reform and workplace collective bargaining. In response to this turbulence, the Chinese government has stepped up efforts to promote the practice of collective bargaining, which had been neglected under the existing “individual rights-based” labour regulatory framework. In the midst of rapid social and policy changes, this article aims to examine the effect of labour strikes on the development of collective bargaining in China. The authors argue that, driven by growing labour protests, the collective negotiation process in China is undergoing a transition, from “collective consultation as a formality,” through a stage of “collective bargaining by riot,” and towards “party state-led collective bargaining.” This transition, however, is unlikely to reach the stage of “worker-led collective bargaining” in the near future.

Recent studies on internet politics in China have gone beyond the once dominant control–liberalization perspective and directed intellectual attention to the varieties of online activism. Based on extensive in-depth online ethnographic work, this project explores the pluralization of online expression in Chinese cyberspace. Following a constituency of internet users who identify themselves as the “voluntary fifty-cent army,” the paper explores how these users acquire and consolidate their identity and combat criticism that targets the authoritarian regime. Analysis of the confrontational exchanges between the “voluntary fifty-cent army” and their opponents suggests that a perspective that goes beyond state censorship and regime-challenging activism is required in order to gain a better understanding of online expression in China. Close examination of why and how internet users may voluntarily defend the authoritarian regime also reveals how the dynamics in online discourse competition may work to the authoritarian regime's advantage.

A new, independently designed household income survey for China in 2002 shows some decline in income inequality in both rural and urban China since 1995. However, the overall Gini ratio for China remained unchanged due to a rise in the urban–rural income gap. The reduction in rural inequality stemmed mainly from a fall in both inter-provincial inequality and inequality within most of the provinces, as well as from a further improvement in the distribution of wage income and farm income and a reduction in the regressiveness of net taxes. The reduction in urban inequality came from a fall in inter-provincial inequality and better distribution of imputed rental income and net taxes. The results raise questions about whether recent more equity-oriented policies, such as the “great western development strategy,” began to reduce some dimensions of overall income inequality. For the first time, a special survey was implemented to furnish data on migrants living in towns and cities. Incorporating the migrants into the urban population raises urban inequality and reduces the urban–rural gap somewhat, but leaves the latter still very high by international standards.