Centre for Financial & Management Studies (CeFiMS) - University of London

Individual Professional Courses – IPC    

Management in China: Domestic Developments [C249]

Introduction

This course describes and explains the evolution of Chinese managerial systems. You will explore the interaction between long-term historical, geographical environments and the evolution of Chinese economic and management practices.

Aims & Objectives

When you have completed your study of this course you will be able to:

• outline the economic and political consequences of the pre-reform leap forward strategy, analyse its main implications, and discuss its influences on economic reform

• evaluate the coherence of China’s economic reform in the light of institutional constraints and critically analyse the major sources of economic growth

• examine the current managerial mechanisms from the major theoretical perspectives, evaluate the disciplining effects of the management reforms and outline the major trade-offs facing future reforms

• discuss the reform of the state sector, assess its implications from the agency and resource dependence theoretical perspectives, and critically evaluate the future role of the state industry in China’s economy

• explain how insider privatisation works in China, distinguish between the main forms of private ownership in the Chinese economy and discuss their contribution to economic growth

• analyse the business practices of China’s leading non-state firms and explain why connections to the state are still important

• evaluate the main challenges faced by China’s financial sector in making the transition to the market economy, including that of WTO entry

• identify the key features of capital market development in China and discuss the main challenges faced by China in facilitating the future development of its capital market

• discuss the main economic and political arguments on whether or not China’s currency is overvalued or manipulated and evaluate the main options for future exchange rate reforms and their likely impact on the domestic and international economy.

Resources

Students receive a looseleaf binder containing eight ‘course units’; these texts are carefully structured to provide the main teaching and are equivalent to traditional course lectures, defining and exploring the main concepts and issues, locating these within current debate and introducing and linking the further assigned readings. Two assignments (to be marked by your CeFiMS tutors), and a specimen examination paper are also included within the student pack, along with the following:

Textbooks:

Naughton, Barry (2007) The Chinese Economy: Transitions and Growth, MIT press MA ISBN 0262640643

Garnaut, R and Y Huang (2001) Growth Without Miracles Oxford University Press, Oxford

Readings:

A compilation of further readings: recently published articles or seminal writings which augment and illustrate the main text.

Course Timetable:

This shows the linkage between the various components of the course and indicates the schedule for reading the texts, submitting assignments, etc.

Course Content

Unit 1: The Pre Reform Economy

• 1.1 The Comparative Advantage Strategy

• 1.2 The Traditional Planning System and the Leap Forward Strategy

• 1.3 New Development Strategies

• 1.4 Summary Remarks

Unit 2: Economic Reforms in China

• 2.1 Introduction: New Directions

• 2.2 Macro Management Reforms: Decentralisation, Fiscal Policy and Federalism

• 2.3 Market Reforms

• 2.4 Assessing China’s Economic Transition

Unit 3: Management Reforms

• 3.1 Introduction

• 3.2 Management Reform Initiatives

• 3.3 Case Study: The First Steel Mill in Beijing

• 3.4 China’s Managerial Labour Market

• 3.5 Ownership Reform

• 3.6 Summary Remarks

Unit 4: State Enterprise Reforms

• 4.1 Introduction

• 4.2 Theoretical Perspectives

• 4.3 Ownership and Governance of SOEs

• 4.4 SOE Problems

• 4.5 Remaining Challenges

• 4.6 Concluding Remarks

Unit 5: The Non-State Sector

• 5.1 Introduction

• 5.2 Township and Village Enterprises

• 5.3 Insider Privatisation: The Transition from Public to Private Ownership

• 5.4 Private Enterprise

• 5.5 Two Case Studies

• 5.6 Review Question

Unit 6: Reform and Development in China’s Financial Sector

• 6.1 Achievements in Institutional Building and Reform

• 6.2 Challenges Faced by the Banking Sector

• 6.3 WTO Membership and the Domestic Bank System

• 6.4 WTO Membership and Foreign Banks

• 6.5 Conclusions

Unit 7: Capital Market Development in China

• 7.1 China’s Capital Market Development

• 7.2 The Key Features of China’s Equity Markets in the 1990s

• 7.3 From one-third to two-thirds Privatisation

• 7.4 International Listing of Chinese Corporations

• 7.5 Concluding Remarks

Unit 8: Monetary and Exchange Rate Policy

• 8.1 Introduction

• 8.2 Reforming the Foreign Exchange System

• 8.3 The Revaluation Debate

• 8.4 The effect of revaluation on China and its trading partners

• 8.5 Concluding Remarks

Tuition & Assessment

You will complete two Assignments which will be marked by your tutor. Assignments are each worth 15% of your total mark. You will be expected to submit your first assignment by the Tuesday of Week 5, and the second assignment at the end of the course, on the Tuesday after Week 8. Assignments are submitted and feedback given online. In addition, queries and problems can be answered through the Online Study Centre.

You will also sit a three-hour examination on a specified date in October, worth 70% of your total mark. An up-to-date timetable of examinations is published on the website in April each year.

Course Sample

Click on the link below to download the course sample document in PDF.

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