The Chinese Economy: Adaptation and Growth

by Barry J. Naughton

The new edition of a comprehensive overview of the modern Chinese economy, revised to reflect the end of the "miracle growth" period.This comprehensive overview of the modern Chinese economy by a noted expert on China's economic development offers a quality and breadth of coverage not found in any other English-language text. In The Chinese Economy, Barry Naughton provides both a broadly focused introduction to China's economy since 1949 and original insights based on his own extensive research. This second edition has been thoroughly revised to reflect a decade of developments in China's economy, notably the end of the period of "miracle growth" and the multiple transitions it now confronts--demographic, technological, macroeconomic, and institutional. Coverage of macroeconomic and financial policy has been significantly expanded.

After covering endowments, legacies, economic systems, and general issues of economic structure, labor, and living standards, the book examines specific economic sectors, including agriculture, industry, technology, and foreign trade and investment. It then treats financial, macroeconomic, and environmental issues. The book covers such topics as patterns of growth and development, including population growth and the one-child family policy; the rural and urban economies, including rural industrialization and urban technological development; incoming and outgoing foreign investment; and environmental quality and the sustainability of growth.

The book will be an essential resource for students, teachers, scholars, business practitioners, and policymakers. It is suitable for classroom use for undergraduate or graduate courses.

Genres: China, Economics, Nonfiction, History, Politics, Asia, Textbooks

608 pages, Paperback

Published March 16, 2018

Reviews

[Ben Jaques-Leslie · Rating 4 out of 5]

If you want a book on the the Chinese Economy, this is the one. Great in detail and well-organized. Written by one of my professors from grad school and we used it in his class. Honestly, class time wasn't very necessary after closely reading the book. My copy is well highlighted.

[Matthew · Rating 4 out of 5]

Somewhat dry but otherwise very good and useful reading.

One major structural observation I found very useful was the division of CHina's reform into 2 stages -- from 1978 to 1993, a reform 'without losers', as Naughton calls it, and then 1993 to the present, a reform 'with losers'. On the reform, Naughton also notes how remarkable it is that China managed to transition its economy without the major macroeconomic disturbances or the widespread banditry observed in the disintegrated USSR -- he attributes this to the policy of maintaining the state's provision of critical industries/services, while opening up to markets on the margin, such that, as he describes, it started out a big chunk of centralised industry with a wee bit of market activity on the periphery, but as the market activity grew and the centalised part was slowly let go off, it gradually became a small island of centralised industry floating about in a wide sea of market activity.

There is also good narrative discussion of the rural-urban divide -- not just the statistics but also of the policies and political history behind the divide -- and of the industrial and trade policy, and the evolution of the financial system.

One thing I'd have liked to see more of is discussion of how much China remains a centralised economy dependent on top down policy guidance, despite all the market reforms and pricing infrastructure -- there is some recognition that the major industries remain SOE controlled, but there is not much input on how and why even areas like the property market, ostensibly freely market priced, are still extremely dependent on policy direction.

[Dulguun · Rating 5 out of 5]

one of the best researches made on chinese economy. well explained and analyzed.

[Patrick · Rating 4 out of 5]

Probably THE classic textbook on the modern Chinese economy.

[Theresa Leone Davidson · Rating 3 out of 5]

The Chinese Economy is a long, dry book that covers everything you could possibly want to know about the country's economy. There is background material on their economy before 1949, and the industrialization, reform, and market transitions that have taken place since. Writer Barry Naughton also discusses different aspects of the modern Chinese economy, and patterns of growth and development, including population growth and the one child family policy. Of particular interest, for me at least, was the information on international trade and foreign investment, particularly in the United States. I would imagine you would need to be really interested in the subject to enjoy the book, but if China's economy does interest you, then I would recommend this.

[Kai]

A thorough and comprehensive textbook, with good explanations of econ concepts for those without a background. Written with a strong econ focus to the point where some issues e.g. Cultural Revolution are glanced over maybe a bit too much, yet other than that, the book is quite detailed and objective. I am currently doing an MA in China Studies and am sure that I will keep using this book as a reference throughout my studies.

[Daniel · Rating 5 out of 5]

This is a great overview of China's economy. Particularly useful is the progression from basic and easy to understand topics to more technical chapters, such as finance. Because of this, it is suitable for both people with and without a background in economics.

[Andrew Daniels · Rating 4 out of 5]

Insightful, reliable and not that out of date, all considering

There are alot of worse books on China, so this one is pretty passable
definitely an option to read, but its not genius, eminently readable or illuminating

[Eny Rebel]

Excellent overview and good detail of the Chinese economics and transition. Learnt a lot about China from this book

[Kenneth Meyer · Rating 3 out of 5]

Probably mostly for China specialists. This 2007 work is now overtaken by events of the past seventeen years, but I wish we had an updated version of it, whether by Dr. Naughton himself or of one of his proteges. To answer that need, and somewhat as a consolation prize, those interested in China today might take a quick look at https://www.thewirechina.com/2025/01/... , a recent article.
This work gives great detail on China's domestic economic policies of the period (about) from 1987 to 2007. Among the questions the work explores are the internal debate of Chinese policymakers on the question of how far can we go to fit into the world economy (Naughton works by inference, looking at what the elites decreed), how must the provincial and other-level markets be shaped to facilitate China's rise, what loan structures must be erected and reformed, and so on.
I believe this is still a very useful reference work.
Enjoy!

[J · Rating 5 out of 5]

5 stars not as a pageturner by any means, but it certainly does do what you'd want it to do -- it lays out an excellent and comprehensive summary of the Chinese economy, divided into well-chosen thematic chapters of appropriate length. Not something you'd usually sit down and read, but if you want to get a good sense of the Chinese economy, this is certainly a good starting point!

[V · Rating 5 out of 5]

Read most of the first edition and loved the clarity of writing. Important fascinating topic. Looking forward to reviewing 2nd edition.

[val]

read this for my econ class. v comprehensive

[Monzenn · Rating 5 out of 5]

A five star textbook about the Chinese economy. It stops at the late 00s so it's unable to comment on the Xi Jinping era, but most of what it does comment on is informative and enlightening.

[Jane Chu · Rating 4 out of 5]

The first few chapters--background and history of the Chinese economy--were extraordinary and should be required reading for anyone doing anything related to China. Then the book got really dry and outdated, mostly repackaged literature reviews or journal articles, not very interesting unless you need specific data for further research. Still a good resource to keep on the shelf.

[Sirenalu · Rating 3 out of 5]

This was the textbook used for a sinology course in uni. The chapters are clear structured and most of them were easy to read. Interesting for those who want to know about the history of chinas economic transition from pre-1978 till about 2005. Some chapters might be boring though.

[Stacey · Rating 4 out of 5]

Excellent overview and good detail of the transition China has made over the last thirty years. I read most of this book for a class, and I look forward to reading the rest when I have time.

[Chase · Rating 4 out of 5]

Very good survey of China. I read it for a class taught by the author. I'd recommend it to anyone looking to understand China.

[Sigrid-marianella · Rating 5 out of 5]

Great introduction to the Chinese Economy, its history and development prior to the financial crisis.

[Tsoek · Rating 4 out of 5]

Diverse in topics and perfectly intelligible for beginner students studying Chinese Economics.

[chloe xu · Rating 3 out of 5]

vv factual! I definitely learnt a lot but it was too academic for me!

[Omar · Rating 5 out of 5]

Spent months combing through this gem of a book. An absolute must read.

[Fernando · Rating 4 out of 5]

Great insight on china's history and actuality.