China

China is expected to become the world's largest economy in less than two decades. Whether it does so will depend on continued growth of the non-state sector and how well China adapts to global market forces. The essays in this volume consider the state of China's economic reforms, the institutional changes necessary for China to become a global economic power, and the interplay between market reforms and social development in China.

China possesses one of the world's largest mining industries, and since 1949 the production of minerals and energy has played a critical role in its economic development. This is the only comprehensive source of information on China's mining sector available today. It presents a wealth of descriptive material, provides a detailed economic analysis of the industry and its role in China's industrialization process. James Dorian examines the history, practices, organizational structure, performance criteria, and constraints of the mining industry, than broadens his study to look at the interaction of the mining industry with other sectors of the Chinese economy. He argues that the growth of the mining industry in China has been instrumental to the nation's economic expansion, and analyzes its possible future after the recent industrial reforms.

The saving rate of China is high from many perspectives - historical experience, international standards and the predictions of economic models. Furthermore, the average saving rate has been rising over time, with much of the increase taking place in the 2000s, so that the aggregate marginal propensity to save exceeds 50%. What really sets China apart from the rest of the world is that the rising aggregate saving has reflected high savings rates in all three sectors - corporate, household and government. Moreover, adjusting for inflation alters interpretations of the time path of the propensity to save in the three sectors. Our evidence casts doubt on the proposition that distortions and subsidies account for China's rising corporate profits and high saving rate. Instead, we argue that tough corporate restructuring (including pension and home ownership reforms), a marked Lewis-model transformation process (where the average wage exceeds the marginal product of labour in the subsistence sector) and rapid ageing process have all played more important roles. While such structural factors suggest that the Chinese saving rate will peak in the medium term, policies for job creation and a stronger social safety net would assist the transition to more balanced domestic demand.

The author examines why China developed and tested an enhanced radiation weapon (ERW) but did not deploy it. He uses primary source documents to reconstruct the ERW program's history, assesses drivers behind decisions throughout the program, and considers broader implications for PRC decision making on weapons development. He concludes that the ERW coalition's rise and fall, the "principles" approach employed by the weaponeers, and the final decision to added the ERW to China's 'technology reserve' present plausible explanations to key questions. He also considers how the 'technology reserve' model might apply to China's decision-making on current ballistic missile defense (BMD), antisatellite (ASAT), and hypersonic glide vehicle (HGV) programs.