Finance, Growth, and Transition in the PRC

Abstract

China’s experimentation with its financial markets and institutions is centered around a primary mission of channeling capital to state-owned enterprises and, to a lesser extent, the growing private sector. Future growth rates in value and the related concept of GDP are dependent, in part, on the success of financial-sector restructuring. Economic development strategies and the outcomes of such strategies are never determined solely by local conditions but are overdetermined by changing global conditions. The nexus connecting local conditions to global conditions is partly made of financial relationships by which global capital flows are directed toward certain corporate structures, providing the potential for intensified exploitation, expanded value creation, and sustainable rates of national growth. It is imperative that those deploying Marxian and/or other heterodox tools to uncover existing relationships shaping the “nature” of future social formations integrate financial processes and networks with global corporate and political relationships.

Key Words:

• Finance
• China
• Development
• Marxism
• Transition