Monday, April 25, 2011

What To Read Regarding China's Economy

For those of you who don't read Foreign Affairs they often do suggested reading lists on certain topics and this months topic is the Chinese economy which I found good and especially relevant:
The Chinese Economy: Transitions and Growth. By Barry Naughton. MIT Press, 2007.

Economic Development and Transition: Thought, Strategy, and Viability. By Justin Yifu Lin. Cambridge University Press, 2009.

"The Great Leap Backward?" By Elizabeth C. Economy. Foreign Affairs (September/October 2007): pp 38-59.

China's Great Economic Transformation. Edited by Loren Brandt and Thomas G. Rawski. Cambridge University Press, 2008.

Studies in the Economic History of Late Imperial China: Handicraft, Modern Industry, and the State. By Albert Feuerwerker. University of Michigan Press, 1996. 

Capitalism With Chinese Characteristics: Entrepreneurship and the State. By Yasheng Huang. Cambridge University Press, 2008. 

"Formal and Informal Lobbying Practices in China: The Capital's Ambivalent Embrace of Capitalists." By Scott Kennedy. China Information (July 2009). 
Chinese Negotiating Style: Commercial Approaches and Cultural Principles. By Lucian W. Pye. Quorum Books, 1992.     

This follows an article about how to tax Chinese owned American assets until they readjust their currency which I also recommend reading.  Here is the jist:
How would the mechanics of this tax actually work? As the administrative and legal processes leading to a tax are unfolding, the Chinese authorities would have time to preemptively change their currency practices -- a win-win outcome. The first step to instituting the tax would be for the United States to give notice, consistent with the treaty itself and prior to July 2011, that the U.S.-China tax treaty will be canceled as of January 2012. The second step would be for the U.S. Congress to amend several sections of the U.S. Internal Revenue Code that ensure tax-free treatment of income derived from financial assets held by the Chinese government and other official Chinese entities. This amendment would allow the United States to impose a withholding tax at rates determined by the Treasury Department, so long as China's currency manipulation continued.