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China’s gradual integration with the global market is responsible for exceptional rates of economic growth and for the substantial sociopolitical stability enjoyed by the country over the past decades. Nevertheless, the choice to increasingly adhere to the competitive dynamic of the market has thrown up a battery of problems for China’s leadership, as increasing affluence has favored the pluralization and diversification of social interests. In a country where the existence of divergent and competing social claims has traditionally been regarded as a grave threat to stability, marketization, whereas on the one hand acting as a source of political legitimacy, has, on the other, paved the way for a potentially more strained relationship between relevant corporative interests and the central government. By studying China’s recent development from the complementary perspectives of the “horizontal” and “vertical” forms of decentralization and devolution, this paper aims to highlight the tensions with which China has had to contend since its adoption of reform and opening-up policies in the late 1970s. It aims also to suggest how the Chinese leadership’s instinct for continued social control has cut against market reform just enough to effect a process of controlled macroeconomic integration that has been more successful than wholesale resistance or immediate unquestioning acceptance would have been.
China’s gradual integration with the global market is responsible for exceptional rates of economic growth and for the substantial sociopolitical stability by the country over the past decades. Nevertheless, the choice to increasing adhere to the competitive dynamic of the market has thrown up a battery of problems for China’s leadership, as increasing affluence has favored the pluralization and diversification of social interests. In a country where the existence of divergent and competing social claims has traditionally been considered as a grave threat to stability, marketization, but on the one hand acting as a source of political legitimacy, has, on the other, paved the way for a potentially more strained relationship between relevant corporative interests and the central government. By studying China’s recent development from the complementary perspectives of the “horizontal” and “vertical” forms of decentralization and devolution, this paper aims to hig hlight the tensions with which China has had to contend since its adoption of reform and opening-up policies in the late 1970s. It aims also to suggest how the Chinese leadership’s instinct for continued social control has cut against market reform just enough to effect a process of controlled macroeconomic integration that has been more successful than wholesale resistance or immediate unquestioning acceptance would have been.