This brief presents an alternative view to Minxin Pei, arguing that while China faces daunting challenges, it has also undertaken significant institutional reforms.
China’s economic transition is not ‘trapped’. Instead, China has the capacity to move forward to a more sophisticated and equitable economy.
The enforcement of commercial judgments in China has long been regarded as notoriously difficult. Recent studies, however, show that enforcement has significantly improved in urban areas, but remains a problem in rural areas.
This brief adopts a neo-institutional approach to derive some generalizations about how China’s policies are enforced, why enforcement remains such a problem, and what foreign firms can do to meet the challenges provided by China’s enforcement regime.
In particular, the brief draws on the protection of intellectual property rights to illustrate the following.
The reform of the urban housing system, begun in the late 1980s, has resulted in a general improvement in accommodation for most of the urban population in China. In less than twenty years, the government managed to provide new and reasonable quality owner-occupied housing to as much as 80 per cent of the urban population. This achievement was made possible by the transition to a market economy and the rapid economic growth that followed.