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During the current global COVID-19 crisis Taiwan has portrayed itself as both an example for other countries to follow and as a country willing to assist others in their own efforts with the virus. Taiwan has also renewed efforts to participate in the World Health Organization (WHO), an organisation from which it is currently excluded. Although some countries have supported Taiwan's efforts to participate in the WHO or have praised its COVID-19 response, others have been silent or even critical, sometimes citing commitments to a “one China policy.” In this paper, we use newly collected data to explore cross-national variation in support for Taiwan during the current pandemic. We find that a country's level of economic development and security ties with the US are strongly correlated with support for Taiwan while a country's economic ties to China is a less consistent predictor.
Despite fruitful findings on the reasons underlying the desire for educational success and scarce credentials among students and families, there is little research on the meaning of educational success in the marketplace. As higher education in China has expanded to aid better-quality growth and the transition to a knowledge-based economy, educational success has become increasingly critical in the allocation of socioeconomic rewards. As such, insights into how educational success and concomitant credentials are valorized are empirically and theoretically significant. Drawing on in-depth interviews with 73 recruiters for elite professional service firms, this study analyses the meanings underlying the process of valorizing educational success and elite credentials. It shows that success in the gaokao, or entry to higher education, was qualitatively salient in excluding candidates, while information about subject domains and marks/class rank carried relatively less weight. Recruiters based the value of educational success on the notion of “learning ability,” which reflected their shared understandings about Chinese educational selection/institutions and wider conditions of elite professional firms. On this basis, this paper argues for the development of learning capital as a new theoretical lens for approaching educational success and credentials in transitional China.
The European Union's position on “one China” has stood since the establishment of diplomatic relations with the People's Republic of China (PRC) in 1975. As a union of distinct member states, the nature of the European Union's (EU) foreign policymaking complicates efforts to maintain coherent common positions. Its effective “one China policy” (and those of its member states) is no exception. In recent years, the edges of the bloc's long-standing policy have started to fray as the EU–PRC relationship has become more fraught and many member states have sought to deepen their effective, if “unofficial,” engagement with Taiwan. I explore these changes to the EU's effective “one China policy” by employing a subsystems framework, starting from the position that the EU has foreign policies (rather than a singular policy) created through three subsystems. Through the Normative Power Europe lens, I explore the extent to which the actors pulling at these “threads” at the edges of the EU's policy are motivated by normative concerns. I argue that the “fraying” of the EU's “one China policy” is not the result of a conscious decision by the EU as a collective normative actor but stems from shifting preferences within the national and supranational subsystems.
This study analyses the “one China” framework's significance for Japan–Taiwan relations since Tokyo switched diplomatic recognition from Taipei to Beijing in 1972. Drawing on Chinese-, Japanese- and English-language sources, it examines developments since the breakthrough Japan–PRC normalization communiqué and the “Japan formula,” which enabled Tokyo to normalize relations – six years before Washington – without recognizing Beijing's claim of sovereignty over Taiwan, and while maintaining robust, if unofficial, ties with Taipei thenceforth. Highlighting distinctions between Beijing's self-asserted “one-China principle” and Japan's ambiguous official position and subsequent effective policies, it assesses incremental but practically significant evolutions of Japan–Taiwan relations over the past half-century. In the 21st century, the trend towards incrementally closer ties has proven strikingly resilient to political transitions in Japan and Taiwan, China's growing power, pushback from Beijing and worsening cross-Strait frictions. Beyond Japan–Taiwan relations and theoretical debates on “one China,” this article's findings carry significant implications for Taiwan's international space, cross-Strait dynamics and China–Japan–United States relations.
This lead article surveys the history and evolving policy legacies of the “one China” framework 50 years after US President Richard Nixon's historic 1972 visit to China. It begins by introducing key concepts and highlighting the crucial difference between Beijing's self-defined “one-China principle” and the US's, Japan's and key other countries’ variable “one China” policies as it relates to Taiwan. It argues that three seminal 1970s developments consolidated the “one China” framework as an informal institution of international politics. The ambiguity baked in by Cold War-era geopolitical necessity provided flexibility sufficient to enable diplomatic breakthroughs between erstwhile adversaries, but also planted seeds for deepening contestation and frictions today. Recent developments – especially Taiwan's democratization and Beijing's increasingly bold and proactive assertion of its claim to sovereignty over Taiwan – have transformed incentive structures in Taipei and for its major international partners. The net effect is that the myth of “consensus” and the ambiguities enabling the framework's half-century of success face unprecedented challenges today.
A comprehensive, up-to-date, insightful, and innovative masterpiece on the Chinese public finance has finally emerged to fill the gap in the field. Considering China's public finance in its entirety, from tax systems, government spending, infrastructure financing, fiscal policies, local government debt, and central-local fiscal relationships to urban and rural social security and healthcare, it analyses China's public finance reforms and examines the reasons and the consequences of these reforms. It explores the challenges to China's public finance, examines its problems, and suggests potential solutions. While covering a broad range of themes, this book remains judicious with the evidence, providing its readers with innovative yet careful conclusions. Using enormous amount of the latest data and illustrative diagrams, the author explains China's public finance with expertise and clarity. This is an indispensable resource for students and scholars from a range of disciplines with an interest in the Chinese economy.
Chapter 2 analyzes the rises and falls of China’s government revenue in the last four decades. It estimates the size of China’s government revenue which includes general fiscal revenue, government fund, social security fund, and operating income from state-owned capital, as well as extra-budgetary revenue. It discusses China’s tax reforms and analyzes the reasons for the ups and downs of the general fiscal revenue and other government revenues. It compares the size of China’s government revenue with other countries, showing that the ratio of total government revenue in GDP in China is quite large now. It also discusses the characteristics of China's government revenue system. This chapter finally examines the problems in the current revenue system, and discusses factors affecting future government revenue.
Chapter 9 is on healthcare reforms. First, it examines different government health insurance programs: the new rural cooperative medical system, health insurance for urban workers, health insurance for urban residents, health insurance for government employees, and health insurance for urban and rural residents. Next, it analyzes the healthcare supply system, particularly the state-owned hospitals (SOHs). Then, it scrutinizes the problems with the healthcare system, including under-developed healthcare insurance, heavy government subsidies to SOHs, excessive government intervention in healthcare service provisions, the shortage of qualified doctors, urban-rural healthcare disparity, and unsustainability of the healthcare insurance system. Finally, it offers policy suggestions on healthcare reforms.
This overview first discusses some traditional thoughts on public finance, particularly the thought of implicit taxation, which have had a profound influence on the behavior of the Chinese government historically and currently. It then describes public finance under the centrally planned economic system, followed by an examination of market-oriented public finance reforms before exploring the challenges to China’s public finance. Finally it explains the contributions of this book. By the end of 1956, China completed the “socialist economic reforms,” turning all large- and medium-sized private enterprises into SOEs and small private enterprises into collectively-owned-enterprises. In 1958, the government took back the land previously allocated to farmers and established the people’s communes.Another economic reform started in 1978, allowing private enterprises to develop and allowing farmers to grow whatever they like on the land allocated to them. A modern tax system and a social insurance system were established and local governments have been given some fiscal freedom. However, there are still problems with public finance.
Chapter 7 discusses China’s infrastructure development.It analyzes the ways in which infrastructure investment has been financed, including revenues from land sales, bank loans, infrastructure development funds, domestic and foreign debt, taxes, fees, and user charges. It shows the composition of funds for financing key infrastructures including transportation, telecommunication, energy, and sanitation. It demonstrates that China's infrastructures have grown rapidly in the past twenty-five years. It examines the reasons for the fast infrastructure development in China and the problems with infrastructure development, including a solid tax system, a pro-infrastructure spending system, expansionary fiscal policies, and large local government revenues from land sales and bank borrowings. It also evaluates China’s belt and road initiative and discusses the L17benefits and potential risks to the countries involved.
Chapter 6 analyzes the size and structure of China’s government expenditure. It estimates the size of China’s government expenditure which includes general fiscal expenditure, the expenditure financed by government funds, social insurance expenditure, the expenditure financed by the operating income from state-owned capital, the off-budget expenditure financed by local government debt, and extra-budgetary expenditure. It reveals phenomenon like the Chinese government spending a large proportion of its revenue on economic construction while spending an insufficient amount on education, health and social welfare; and local governments undertaking most of the total government expenditure. The problems with the current expenditure system are discussed, and prospective reforms of the government expenditure system are also discussed in this chapter.
Chapter 3 analyzes consumption-based taxes in China. The Chinese government now heavily depends on the consumption-type value-added tax (VAT) and the consumption tax, a special tax on specific goods such as alcoholic products, cigarettes, and automobiles. In addition, two additional taxes, urban maintenance and construction tax and the additional fee for education, also share the same tax base as the VAT. These consumption-based taxes account for more than half of China’s total tax revenue. Other taxes on goods and services, such as tariffs, vehicle purchase tax, resource tax, and environmental tax are also examined in this chapter. The advantages and disadvantages of consumption taxes are evaluated as well.Consumption taxes are favorable to savings and economic growth but are not favorable to income redistribution.