Hostname: page-component-586b7cd67f-rcrh6 Total loading time: 0 Render date: 2024-11-24T21:22:47.418Z Has data issue: false hasContentIssue false
  • English
  • Français

Recent Changes in China's Pure Trade Theory

Published online by Cambridge University Press:  17 February 2009

Shu-yun Ma
Get access Rights & Permissions [Opens in a new window]

Extract

The importance of international trade to the Chinese economy has been growing since the formal approval of the open-door policy at the Third Plenary Session of the 11th Central Committee of the Chinese Communist Party in 1978. However, trade expansion in China faces three constraints. First, there is the theoretical problem that orthodox ideology makes it illegitimate for a socialist country to have a large foreign trade sector. Secondly, there is the institutional problem that the Soviet-type foreign trade mechanism, characterized by a state monopoly of foreign trade, a centralized foreign trade plan, and insulation of domestic from foreign prices, is incapable of handling trade expansion in an efficient manner. Thirdly, there is the economic problem that the lack of competitiveness of domestic goods in the international market limits the country's export and thus import capacity. While the new Chinese leaders are making immense efforts to remove these constraints, this article will focus only on the first. The anti-trade attitude of Communist China is the combined result of China's historical heritage and Marxist ideology. The long history of self-sufficiency in “feudal” China meant that trade was never an imperative economic need. When contact with the west increased in the 19th century, international trade was associated with an influx of opium, an outflow of silver, and a series of unequal treaties. Such an unhappy, early experience of contact with the west has left China sensitive to any increase in international trade.

Type
Research Article
Information
The China Quarterly , Volume 106 , June 1986 , pp. 291 - 305
Copyright
Copyright © The China Quarterly 1986

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1. Zedong, Mao, “Bixu xuehui zuo jingji gongzuo” (”Must learn how to do economic work”), 1945, in Mao Zedong xuanji (Selected Works of Mao Zedong), Vol. III (Beijing: People's Press, 1953). p. 917Google Scholar.

2. Zedong, Mao, “Kangri zhanzheng shengli hou de shiju he women de fangzhen” (”The current political situation and our principle after the victory in the Anti-Japanese War”), 1945, in Selected Works, Vol. IV (1960), p. 1,030Google Scholar.

3. “Zili gengsheng, yangwei zhongyong” (”Self-reliance, make foreign things serve China”), in Renmin ribao (People's Daily), 16 November 1976.

4. Yaoting, Wang, “China's foreign trade,” in Peking Review, No. 41 (11 10 1974), p. 19Google Scholar.

5. Xiaofeng, Hu and Shuying, Han (eds.), Zhongguo shehuizhuyi jingji taolungangyao (An Outline of the Discussions on China's Socialist Economic Problems) (Changchun: Jilin People's Press, 1983)Google Scholar; Jingji Yanjiu Jingjixue Dongtai Bianjibu (Editorial Departments of Yanjiu, Jingji and Dongtai, Jingjixue)(eds.), Jianguo yilai zhengzhi jingjixue zhongyao wenti zhenglun (Important Debates on Political Economy Issues Since the Founding of the State 1949–80) (Beijing: China Financial Economics Press, 1981)Google Scholar.

6. Bingkui, Wei, “Jianchi duli zizhu, zili gengsheng de fangzhen” (”Insist on the principle of independence and self-reliance”), in Hongqi (Red Flag), No. 1 (1974), p. 85Google Scholar.

7. Bacharach, M., Economics and the Theory of Games (London: Macmillan, 1976), Ch. 5CrossRefGoogle Scholar.

8. Qiwei, Chen, “Bijiao liyi lun de kexue neihe” (“The scientific core of the theory of comparative advantage”), in Shijie jingji (World Economy), No. 3 (1981), p. 18Google Scholar; Baisong, Zou, “Guanyu li jia tu de bijiao chengben lun de taolun jianjie” (”A brief introduction of the discussion on Ricardo's theory of comparative cost”), in Jingji kexue (Economic Science), No. 3 (1981), p. 69Google Scholar;Maogong, Chen, “Li jia tu bijiao chengben lun de heli neihe” (”The core of truth of Ricardo's theory of comparative cost”), in Jingji kexue. No. 3 (1984), p. 79Google Scholar.

9. Baisong, Zou, “A brief introduction,” p. 68Google Scholar.

10. Zengyin, Yao, “Zai shijie shichang shang, jiazhi guilu fasheng liao zhongda de bianhua” (”There have been significant changes in the functioning of the law of value in the international market”), in Shijie jingji, No. 6 (1983), pp. 1–3Google Scholar.

11. Amin, S., “Unequal development” (New York: Monthly Review, 1976. Original in French, 1973)Google Scholar.

12. Chenglin, Li, “Weiyou an shijie jiazhi de dengjia jiaohuan caishi zhenzheng pingdeng huli de” (”Only exchanges according to international value are fair and mutually beneficial”), in Shijie jingji. No. 6 (1983), p. 12Google Scholar.

13. Huixin, Yang, “Li jia tu de bijiao chengben lun yu laodong jiazhi lun de guanxi” (”The relation between Ricardo's theory of comparative cost and labour theory of value”), in Jingji kexue. No. 2 (1983), p. 77Google Scholar; Zengyin, Yao. “Jiazhi guilu zai shijie shichang shang de zuoyong” (”The function of the law of value in the international market”), in Shijie jingji. No. 3 (1983), p. 32Google Scholar.

14. Marx, Karl, Kapital, Vol. 1 (1890) (Chicago: Charles H. Kerr, 1906), p. 42Google Scholar.

15. Ibid. p. 43.

16. Ibid. p. 175.

17. Xi, Xin, “Lun Makesi jiazhi lun zai shijie shichang de yingyong” (”On the application of Marx's law of value in the international market), in Guoji maoji wenli (Problems of International Trade), No. 1 (1982). pp. 6–7Google Scholar;Guoxing, Zhu and Shaoxi, Wang, “Guanyu Makesi dui li jia tu bijiao chengben lun de pingjia wenti” (”On the problem of Marx's assessment of Ricardo's doctrine of comparative cost”), in Guoji maoji (Intertrade), No. 8 (1982), pp. 24–26Google Scholar.

18. Ricardo, D., Principle of Political Economy and Taxation (London: J. Murray, 1821), p. 108Google Scholar.

19. Wiles, P. J. D., Communist International Economics (Oxford: Basil Blackwell, 1968), p. 29Google Scholar.

20. Writers Group of the Foreign Trade Department of Liaoning Fiscal Institute, “Primer on international trade.” in Chinese Economic Studies (Winter 1974–1975), pp. 9–10Google Scholar.

21. Ibid. p. 10.

22. Business China, 21 January, 1977.

23. Chongwei, Ji, “Yingyong bijiao chengben lun zhidao woguo duiwai maoji, zai guoji maoji zhong qude jiaohao de jingji xiaoguo” (”Apply comparative cost theory to guide our country's foreign trade in order to obtain better economic result in international trade”), in Waimao jiaoxue vu vanjiu (Teaching and Research on Foreign Trade), No. 3 (1981), p. 2Google Scholar.

24. Davie, J. L. and Carver, D. W., “China's international trade and finance,” in U.S. Congress, Joint Economic Committee, China Under the Four Modernizations, Pt 2 (Washington, D.C.: U.S. Government Printing Office, 1982), pp. 24–25Google Scholar.

25. Peiji, Zhang, “Zhongguo duiwai maoji de fazhan” (”The development of China's foreign trade”), in Zhongguo jingji nianjian (China Economic Yearbook) (1981), p. IV–129Google Scholar.

26. Chaochin, Liu, “The Chinese foreign trade policies and plan,” in Economic Information and Agency (ed.), China's Foreign Trade and its Management (Hong Kong: Chung Hwa Book Co., 1978), pp. 9–10Google Scholar.

27. Emmanuel, A., “Unequal exchange” (New York: Monthly Review, 1972), p. 169. (Original in French, 1969)Google Scholar.

28. Zengyin, Yao, “Yi man niu er de bupingdeng jiaohuan xueshuo shuping” (”A comment on Emmanuel's doctrine of unequal exchange”), in Shijie jingji, No. 6 (1983), pp. 40–44Google Scholar.

29. Kuhne, K., Economics and Marxism, Vol. 2 (London: Macmillan, 1979), pp. 26–29. (Original in German, 1974.)CrossRefGoogle Scholar

30. A Soviet textbook definition, cited in Brus, W., The Market in a Socialist Economy (London: Routledge and Kegan Paul, 1972), p. 91. (Original in Polish, 1964.)Google Scholar

31. Marx, , Kapital, p. 612Google Scholar.

32. Wenqi, Yuan, “Guanyu jiazhi guilu zai shijie shichang shang zuoyong de chutan” (”A preliminary study on the functioning of the law of value in the international market), in Shijie jingji, No. 9 (1980), p. 13Google Scholar; Zengyin, Yao, “The functioning of the law of value,” p. 33Google Scholar; Dichen, Gao, “Guoji maoji zhong cunzai lianzhong jiazji jueding he lianzhong jiazhi chidu” (”Two determinants and two measurements of value exist in international trade”), in Shijie jingji, No. 6 (1983), p. 18Google Scholar; yongyi, Tao, “An guoji jiazhi jiaohuan jiushi pingdeng huli de jiaohuan” (”Exchange according to international value are fair and mutually beneficial”), in Shijie jingji, No. 6 (1983), p. 10Google Scholar;

33. Zhongdi, Zhu, “Bijiao chengben shuo de lilun quexian” (”The theoretical defects of the doctrine of comparative cost”), in Shijie jingji, No. 11 (1981), pp. 25–33Google Scholar;Longshen, Chen, “Jishi an guoji jiazhi jiaohuan laodong shengchanlu de chayi yeneng yinqi budengjia jiaohuan” (”Difference in labour productivity can lead to unequal exchange even if the exchange is according to international value”), in Shijie jingji (World Economy), No. 6 (1983), pp. 21–23Google Scholar.

34. Emmanuel has also pointed out the possibility of transfers of value; but his argument, which relies on international equalization of profit rates, is not the same as that of the Chinese economists. See Emmanuel, , “Unequal exchange,” pp. 381–82Google Scholar.

35. jie, Qiu, “Guanyu guoji maoji wenti” (”On the problem of international value”), in Guoji maoji wenti, No. 3 (1984), p. 11Google Scholar.

36. Ibid.

37. According to Marx, extra surplus value can be obtained by raising productivity(see Marx, .Kapital, pp. 347–48)Google Scholar. Since international trade according to comparative advantage will raise productivity, it will also generate extra surplus value.

38. Tongshu, Zhu and Jiabao, He, “Yetan li jia tu bijiao chengben shuo” (”Another discussion on Ricardo's doctrine of comparative cost”), in Shijie jingji, No. 4 (1982), pp. 14–15Google Scholar; Wenqi, Yuan, “Laodong shengchanlu de chayi bing wei goucheng guoji maoji zhong de boxue” (”Difference in labour productivity has not led to exploitation in international trade'), in Shijie jingji, No. 10 (1982), p. 43Google Scholar; Shuiyuan, Lin, “An guoji jiazhi jinxing de guoji maoji zhong de boxue daoyuan yu buheli de guoji fengong” (”The source of exploitation in international trade according to international value is the unreasonable international division of labour”), in Shijie jingji, No. 6 (1983), pp. 28–30Google Scholar; linsheng, Wang, “Laodong shengchanlu de chayi bushi chansheng budengjia jiaohuan de yuanyin” (”Difference in labour productivity is not the factor leading to unequal exchange”), in Shijie jingji, No. 6 (1983), pp. 5–7Google Scholar; Changhua, Lin, “An guoji jiazhi jiaohuan, fuguo zhaqu pingguo de yuanyin” (”The reason why rich countries can exploit poor countries if exchanges are according to international value”), in Zhongguo jingji wenti (Problems of the Chinese Economy), No. 3 (1984), p. 48Google Scholar.

39. Maarek, G., An Introduction to Karl Marx's Das Kapital (Oxford: Martin Robertson, 1979), p. 64. (Original in French, 1975.)Google Scholar

40. Zhang, He, “Cong jiazhi guilu zai shijie shichang shang de zuoyong kan zhanhou fazhanzhong guojia maoji tiaojian de ehua” (”Worsening of terms of trade of developing countries in the postwar period – viewed from the role of the law of value in the world market”), in Shijie jingji, No. 7 (1984), pp. 17–24Google Scholar.

41. Ibid. p. 23.

42. “Jishu yingdang shangpinhua” (“Technologies should be merchandized”), in Renmin ribao, 17 11 1984Google Scholar.

43. For a discussion on the Eastern European debate on foreign trade theory, see Pryor, F.L., “Foreign trade theory in the communist bloc,” in Soviet Studies (06 1962), pp. 41–61Google Scholar.

44. Linsheng, Wang, “Shilun shehuizhuyi duowai maoji de dewei he zuoyong wenti” (”A tentative discussion on the role and function of socialist foreign trade”), in Guoji maoji, No. 2 (1982), pp. 13–18Google Scholar.

45. For an empirical study on the intra-CMEA foreign trade pricing, see Hewett, E. A., Foreign Trade Prices in the Council for Mutual Economic Assistance (London: Cambridge University Press, 1974)Google Scholar.

46. This is the view of the Eastern European “internationalists”; see Pryor, , “Foreign trade theory,” p. 53Google Scholar.

47. Jie, Qui, “On the problem,” p. 11Google Scholar.

48. See Wilczynski, J., “The theory of comparative costs and centrally planned economies,” in Economic Journal (03 1965), pp. 63–80Google Scholar; and Boltho, A., Foreign Trade Criteria in Socialist Economies (London: Cambridge University Press, 1971)Google Scholar.

49. Youtu, Huang, “Zhongguo duiwai maoji jichu zhishi” (”Basic knowledge of China's foreign trade”) (Fuzhou: Fujian People's Press, 1981), pp. 122–24Google Scholar.

50. Lun, Gan, “Zhongguo duiwai maoji sanshiwu nian” (”Thirty-five years of China's foreign trade”), in Guoji maoji wenti, No. 4 (1984), p. 6Google Scholar.

51. Wilczynski, “The theory.”

52. Xiangzhi, Ye and Yunren, Xu, “Yetan waimao chukuo de jiakui wenti” (”Another discussion on the problem of unreal export losses”), in Guoji maoji wenti, No. 5 (1984), p. 18Google Scholar.

53. Baohui, Tan, “Gaige zuojia bianfa, tigao jingji xiaoyi” (”Reform the pricing method, improve economic efficiency”), in Guoji maoji, No. 10 (1984), pp. 52–53Google Scholar.

54. Peiji, Zhang, “Guanyu woguo duiwai maoji fazhan zhanlue de tantao” (”A study on the foreign trade development strategy of our country”), in Guoji maoji, No. 1 (1984), p. 21Google Scholar.

55. Cited in Puguang, Wang, “Dui dangqian woguo guanshui zuoyong de tantao” (”A study on the current functions of our country's tariff”), in Guoji maoji wenti, No. 1 (1984), p. 39Google Scholar.

56. Chacholiades, M., International Trade Theory and Policy (New York: McGraw Hill, 1978), p. 24Google Scholar.

57. Boltho, , Foreign Trade Criteria, pp. 17–18Google Scholar.

58. Zhongdi, Zhu, “The theoretical defects,” p. 25Google Scholar.

59. Gangti, Zhu, “Ping zhanhou xifang guoji maoji xin lilun” (”A comment on the new western international trade theories in the post-war period”), in Guoji maoji wenti, No. 2 (1985). pp. 28–29Google Scholar.

60. Jikun, Wu, “Xinde changye geming dui guoji maoji de yingxiang ji woguo yingqu de duice” (”The impact of the new production revolution on international trade and the appropriate countermove of our country”), in Guoji maoji, No. 2 (1984), p. 15Google Scholar.