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Printed for the use of the Joint Economic Committee
U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 1975
For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402 - Price $5.95
JOINT ECONOMIC COMMITTEE
HUBERT H. HUMPHREY, Minnesota, Chairman
WRIGHT PATMAN, Texas, Vice Chairman
HOUSE OF REPRESENTATIVES
RICHARD BOLLING, Missouri WILLIAM PROXMIRE, Wisconsin
HENRY S. REUSS, Wisconsin ABRAHAM RIBICOFF, Connecticut
WILLIAM S. MOORHEAD, Pennsylvania LLOYD M. BENTSEN, JR., Texas
LEE H. HAMILTON, Indiana EDWARD M. KENNEDY, Massachusetts GILLIS W. LONG, Louisiana JACOB K. JAVITS, New York
CLARENCE J. BROWN, Ohio CHARLES H. PERCY, Illinois
GARRY BROWN, Michigan ROBERT TAFT, JR., Ohio
MARGARET M. HECKLER, Massachusetts PAUL J. FANNIN, Arizona
JOHN H. ROUSSELOT, California
JOHN R. KARLIK, Senior Economist
JULY 8, 1975. To the Members of the Joint Economic Committee:
Transmitted herewith for use by the Joint Economic Committee, the Congress, and the interested public is a factual and analytical study of the economy of the People's Republic of China entitled “China: An Economic Reassessment.” This is a compilation of invited papers designed to meet the interests of the committee and the Congress in an up-to-date body of factual data and interpretative comment on the state of the domestic economy of China, including the record of its recent experience in economic development and its relations with the outside world.
Early in the Great Proletarian Cultural Revolution the Joint Economic Committee released a pioneering, two volume assessment, entitled "An Economic Profile of Mainland China" (1967). As the People's Republic of China began to relate more with the world community through its membership in the United Nations it seemed appropriate to supplement the earlier study by a presentation of information and analysis that has become available to the various Departments of the Federal Government. Therefore the “People's Republic of China: An Economic Assessment” was released by the committee in 1972.
China, the largest nation in the world, remains both an enigma and a potential factor in world stability. Certainly, the Chinese economy is a subject of primary concern, and we have an obvious and compelling need of knowledge on the subject. This extensive compilation was organized by the staff in the hope that it will help to serve this need. It covers all of the major aspects of the Chinese economy and should provide a valuable source book for further committee studies of the subject. It is our intention to follow this study with hearings at governmental and nongovernmental experts may testify, thereby helping the Congress to obtain a clear view of what is taking place in China.
In the wake of United States withdrawal from Vietnam and Cambodia, it is especially timely that we review all aspects of our policy with the People's Republic of China. Such a review may also be useful in guiding the Congress toward a new, more informed role in foreign policy formulation. Many of us have been fortunate enough to travel to China recently to view the people and talk with the Chinese leaders first hand. This comprehensive volume will add depth and insights to those impressions.
Our earlier volumes provided a factual basis for better understanding of the economy of China. We hope this volume will not only update this earlier effort but provide a current reassessment. The sources of information on China are still limited but better than during the earlier studies.
It is hoped that this volume, drawing on research at universities, research institutions and in the Federal Government, will serve as an
aid and a stimulus to all scholars working on this subject. The committee is deeply indebted to the scholars from Government and academia who gave so generously of their time and expertise to the committee. They are listed in the executive director's memorandum to me, and I would like to take this opportunity on behalf of the committee of expressing our gratitude for their invaluable efforts without which this study would not have been possible.
Finally, we wish to take this opportunity to express our gratitude to the Congressional Research Service for making available the services of John P. Hardt, who helped to plan the scope of the research and coordinated the contributions for the present study.
It is understood that the views contained in this study are not necessarily those of the Joint Economic Committee nor of individual members.
Chairman, Joint Economic Committee.
JULY 3, 1975 Hon. HUBERT H. HUMPHREY, Chairman, Joint Economic Committee, U.S. Congress, Washington, D.C.
DEAR MR. CHAIRMAN: Transmitted herewith is a volume of materials on the economy of the People's Republic of China entitled "China: An Economic Reassessment." The study has been prepared in the form of a symposium containing a series of selected papers contributed by invited specialists who are recognized authorities on China. The specialists in question have been drawn from the ranks of the universities here and abroad, private research institutions and the several departments of the Federal Government and the Library of Congress. The papers they have submitted, in response to our request, cover the broad range of topics dealing with the recent performance of Chinese economy. Included among these topics are economic policy, the defense burden, agriculture, transportation, industry, population, the environment, technology transfer, international trade, financing, Sino-Japanese economic relations, and foreign aid.
The Joint Economic Committee undertook an earlier study, the two-volume "Economic Profile of Mainland China," to provide a basic body of information on the economy of Communist China. In 1972 the committee released a compendium entitled “People's Republic of China: An Economic Assessment.” The current study is intended to supplement the earlier studies by a presentation of information and analysis that has become available to the various Government agencies during the last several years.
It is hoped, furthermore, that the facts and ideas presented in this survey of available information will help to shed light on the alternatives facing the United States in ordering our relations with the People's Republic of China within the foreseeable future. The shape of these relations is certain to be significant both for the internal development of China and critical to the issue of war and peace in the world.
The contributors to the study have been most considerate of our needs and generous in giving of their time and expertise to provide not only basic information but indispensable analytical perspective on this important subject. The individual scholars who have participated in the preparation of the present study are: Arthur G. Ashbrook, Jr.
Sydney H. Jammes Martha Avery
Young C. Kim Nai-Ruenn Chen
Nicholas Lardy William Clarke
Ian H. MacFarlane Jack Craig
Leo Orleans Frederick W. Crook
Dwight Perkins David L. Denny
Thomas G. Rawski Robert F. Dernberger
Carl Riskin James D. Egan
Charles Robert Roll, Jr. Alva Lewis Erisman
Jon Sigurdson Robert Michael Field
Eugene A. Theroux Carol H. Fogarty
Alfred H. Usack, Jr. Angus M. Fraser
Bobby A. Williams Hans Heymann, Jr.
Kung-Chia Yeh In addition, the committee received the wholehearted cooperation from the following agencies of the Government, private research institutions and universities :
sulate in Hong Kong)
mark) It should be clearly understood that the views expressed in these papers are those of the individual contributors and do not necessarily represent the positions of the respective executive departments, the Joint Economic Committee, individual members thereof, or the committee staff.
The Library of Congress made available the services of John P. Hardt, senior specialist in the Congressional Research Service, who helped to plan the scope of the research and to coordinate the contributions for the present study.
Mr. George D. Holliday of Congressional Research Service assisted Dr. Hardt in this task. We are also indebted to Professor Alexander Eckstein, on leave from the University of Michigan who conducted a monthly luncheon meeting at the Brookings Institution during the course of preparation of many of the paners for this compendium. That luncheon seminar and the useful advice from Professor Eckstein was most helpful in the preparation of the volume.
JOHN R. STARK, Executive Director, Joint Economic Committee.