Contents -- Editors -- Preface WANG Gungwu and ZHENG Yongnian -- Part I The Art of Governance: Managing Rising Expectations Introduction CHEN Gang -- Chapter 1 China's Fifth Generation Leadership: Characteristics and Policies BO Zhiyue -- From the First to the Fourth Generation Leadership -- Emergence of the Fifth Generation Leadership -- Characteristics of the Fifth Generation Leaders -- Possible Lineup of the New Politburo Standing Committee -- Policy Orientations of the New Leadership -- Appendix: Top Leaders of the Chinese Communist Party (1921-) -- Chapter 2 Debating Political Reform: Societal Pressures and Party-State Responses WU Guoguang -- Contending Approaches: Political Reform in Discussions -- Transcending Left and Right: Consensus in the Making -- The Regime is Splitting? Inconsistent Responses from the Party-State -- The 18th Party Congress: Possible Impacts -- Chapter 3 Intra-Party Democracy in Practice: Balloting for City Leaders in Jiangsu ZHENG Yongnian and CHEN Gang -- CCP's System of Selecting Cadres -- Elite Selection -- Will the Party Institutionalise Intra-Party Elections? -- Chapter 4 Township Government Reform: Improving Local Governance? TAN Qingshan -- Reforming Townships -- New Features of Township Reform -- Has Township Reform Changed Anything? -- Challenges for Township Reform -- Local Governance in Transition -- Chapter 5 Innovations in China's Local Governance: An Assessment XIA Ming -- Local Innovations for Governance and Consequence -- Explanations for Snag in China's Pathway to Democracy -- China's Democratisation Uncertain -- Chapter 6 The Impact of Market on the Grassroots Organisations of the Chinese Communist Party Lance L P GORE -- Basic Characteristics of Communist Rule -- The Political Impact of the Market -- General Impact -- Impact on the Party in Rural Areas.

Impact on Party Organisations in Business Enterprises -- Party Organisations in the Mobile Population -- The Party and College Students -- The Market's Continuous Challenges to the CCP -- Chapter 7 China Struggles to Maintain Stability: Strengthening its Public Security Apparatus XIE Yue and SHAN Wei -- Structure of the Policing System -- Expanding the Policing System -- The Swelling Size -- High Costs -- Regulating Policing Behaviours -- Political Promotion -- Dynamics of the Expansion The expansion of the policing -- Political Implications -- Chapter 8 How Secure is China's Food Security? John WONG -- Drought Threatening China's Food Security? -- China's Road to Food Self-Sufficiency -- Recurrent Challenges to China's Food Security -- Chapter 9 China's "New Deal" in Xinjiang and its Challenges SHAN Wei and WENG Cuifen -- Planning a Major Policy Change -- Personnel Change: From "Stability" to "Development" -- The New Policies -- Internal and External Challenges -- Appendix 1 -- Appendix 2 -- Chapter 10 The Chinese Leadership and the Internet LYE Liang Fook and Lily HONG -- Internet Development in China -- Tapping the Internet's Potential -- A Channel for Social Supervision -- The Internet and Prospects for Political Changes -- Chapter 11 Women's Political Participation in China YANG Lijun and GUO Xiajuan -- The Rise of Affirmative Action -- Benefits from the Affirmative Action -- Implementation Problems and Policy Retreats -- Policy Remedy and Prospects of Improvement -- Part II Enhancing and Re-Orienting Governance to Promote Sustainable Development Introduction Sarah Y TONG -- Growth and its Components -- The Role of the State -- Enhancing Governance to Sustain Growth and Development -- Chapter 12 China Coming to the End of its High Growth John WONG and HUANG Yanjie -- Falling into the Middle-Income Trap? -- What is Low Growth for China?.

Sustaining High Growth the East Asian Way -- China More "Dynamic" Than Other East Asian Economies -- Continuing High Growth Not Sustainable -- Changes in Various Growth Components -- Supply Side Analysis -- Demand-Side Analysis -- Rebalancing Investment and Consumption -- China Adjusting to Lower but Still Strong Growth -- Chapter 13 China's Economy After Three Decades of Reforms: A Systems Approach Wolfgang KLENNER -- Market and Planning in China's Present Economic System -- The Status Quo -- Interaction and Contradictions -- Stabilisation Policy in a Mixed Economic System -- Stimulating the Economy -- Calming Economic Activities -- Interventionism or Free Market? -- Chapter 14 Evolving Industrial Policies in China: A Governing Tool for Development and Restructuring Sarah Y TONG -- Changing Priorities in China's Industrial Development -- Government Policies are Effective in Transforming China's Industries -- Managed Foreign Participation Indispensable to China's Industrial Development -- China's Industry in the Global Context -- China's 12th Five-Year Programme -- Government-Led Industrial Restructuring Continues -- Chapter 15 China's Regional Development Policies YU Hong -- New State Strategy to Achieve a More Balanced Regional Development -- China's Main Industrial Powerhouses -- The Pearl River Delta (PRD) Region -- Yangtze River Delta (YRD) Region -- The Jing-Jin-Ji Region -- Challenges for Regional Industrial Development -- Regional Economic Disparities Likely to Prevail -- Chapter 16 The 12th Five-Year Programme: A Turning Point in China's Socio-Economic Development John WONG -- The Need for Macroeconomic Rebalancing and Structural Change -- The Salient Features of the 12th FYP -- The 12th FYP in Action -- A New Development Departure -- Chapter 17 Shadow Banking in China: A Call for Financial Reforms YAO Jielu and YANG Mu.

The Surge of Shadow Banking -- A Breakdown of China's Shadow Banking Market -- Underground Lending -- Banks' Off-Balance Sheet Credit -- Bank Acceptances -- Entrusted Loans -- Trust Loans -- Policies for Mitigating the Risks -- A Radical Solution: Interest Rate Liberalisation -- Chapter 18 The Rise of the Renminbi as International Currency YANG Mu and YAO Jielu -- America's "Triffin Dilemma" and China's "Dollar Trap" -- At the Arena of International Trade -- Convertibility as the Main Barrier for Renminbi's Internationalisation -- Promoting Trade Settlement in Renminbi -- Bilateral Currency Swaps -- Pilot Scheme for Settlement of Cross-Border Trade -- Developing the Renminbi's First Offshore Market in Hong Kong -- Renminbi Deposits -- "Dim Sum" Bonds -- Trade Settlement in Renminbi -- Chapter 19 China's Local Government Debts: Thorny but Manageable YAO Jielu -- A Brief History of Local Government Financial Vehicles -- A Numerical Analysis of Local Government Debt -- Policies for Mitigating the Risks -- Appraising Risks Associated with Local Government Debt -- Chapter 20 China's State-Owned Enterprises: The Dilemma of Reform HUANG Yanjie -- Current Status of the SOEs -- Challenges for Future SOE Reform -- Chapter 21 An Update on China's Sovereign Wealth Fund: China Investment Corporation Catherine CHONG Siew Keng -- CIC's Organisation and its Management in Brief -- New Found Strategies and Confidence -- CIC Extending its Outreach -- Chapter 22 China's Economy Remains Highly Export-Oriented Sarah Y TONG -- Responding to Sharp Declines in Export Demand -- Rapid Trade Recovery with Modest Structural Changes -- Deeper Structural Changes to Sustain Growth -- Chapter 23 Rethinking the Success of China's High-Tech Exports XING Yuqing -- Reported Growth of China's High-Tech Exports -- High-Tech or Assembled High-Tech Products?.

Who Produces China's High-Tech Exports? -- Myth and Reality -- Chapter 24 China's Research and Development WU Yanrui -- Trends in China's Research and Development Activities -- The Role of the Business Sector in China's R&D -- R&D by Sector -- Outlook and Challenges -- Prospects of China's R&D Sector -- Chapter 25 Are Chinese Small and Medium Enterprises Victims of Institutional Pitfalls? CHEN Shaofeng -- Government-SMEs Relations -- SOEs-SMEs Relations -- China's Financial System and SMEs -- More Measures Needed -- Chapter 26 China as a Newly Minted Upper Middle Income Country LU Ding -- Main Drivers of Growth -- Rapid Physical Capital Formation -- Prospect of Capital Formation -- Prospect of TFP Growth -- Growing as an Upper Middle Income Economy -- Chapter 27 China's Labour Shortage and its Implications HUANG Yanjie -- The Panic-Stricken Market for Migrant Labour -- Structural Causes of Labour Shortage -- Implications of Labour Shortage -- Implications for China's Economic Development -- Implications for Welfare and Labour Policy -- Long-term Policy Concerns -- Chapter 28 Can China Continue to Reap its Demographic Dividend in Economic Growth? YAN Hao -- How does the Demographic Dividend Work in China? -- When will the Demographic Window of Opportunity Close for China? -- Labour Supply During the Window of Opportunity -- What to do while the Window of Opportunity is Still Open -- Part III Social Transformation, Stability and Governance Introduction ZHAO Litao -- Problems of "Good Governance" in China -- Reassessing Decentralisation and Marketisation -- Social Management: An Unfinished Project -- Chapter 29 Chinese Working Class and Trade Unions: Transformation and Predicamment in the Reform Era QI Dongtao -- Chinese Workers' Economic Conditions: Stratification and Disadvantaged Migrant Workers.

Chinese Workers' Political Conditions: Rising Population but Declining Political Representation.