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Historical dictionary of the chinese economy


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HISTORICAL DICTIONARIES OF
ASIA, OCEANIA, AND THE MIDDLE EAST
Jon Woronoff, Series Editor
Guam and Micronesia, by William Wuerch and Dirk Ballendorf. 1994.
Palestine, by Nafez Y. Nazzal and Laila A. Nazzal. 1997.

Lebanon, by As’ad AbuKhalil. 1998.
Azerbaijan, by Tadeusz Swietochowski and Brian C. Collins. 1999.
Papua New Guinea, Second Edition, by Ann Turner. 2001.
Cambodia, by Justin Corfield and Laura Summers. 2003.
Saudi Arabia, Second Edition, by J. E. Peterson. 2003.
Nepal, by Nanda R. Shrestha and Keshav Bhattarai. 2003.
Kyrgyzstan, by Rafis Abazov. 2004.
Indonesia, Second Edition, by Robert Cribb and Audrey Kahin. 2004.
Republic of Korea, Second Edition, by Andrew C. Nahm and James E. Hoare. 2004.
Turkmenistan, by Rafis Abazov. 2005.
New Zealand, Second Edition, by Keith Jackson and Alan McRobie. 2005.
Vietnam, Third Edition, by Bruce Lockhart and William J. Duiker. 2006.
India, Second Edition, by Surjit Mansingh. 2006.
Burma (Myanmar), by Donald M. Seekins. 2006.
Hong Kong SAR and the Macao SAR, by Ming K. Chan and Shiu-hing Lo. 2006.
Pakistan, Third Edition, by Shahid Javed Burki. 2006.
Iran, Second Edition, by John H. Lorentz. 2007.
People’s Republic of China, Second Edition, by Lawrence R. Sullivan. 2007.
Australia, Third Edition, by James C. Docherty. 2007.
Gulf Arab States, Second Edition, by Malcolm C. Peck. 2008.
Laos, Third Edition, by Martin Stuart-Fox. 2008.
Israel, Second Edition, by Bernard Reich and David H. Goldberg. 2008.
Brunei Darussalam, Second Edition, by Jatswan S. Sidhu. 2010.
Malaysia, by Ooi Keat Gin. 2009.
Yemen, Second Edition, by Robert D. Burrowes. 2010.
Tajikistan, Second Edition, by Kamoludin Abdullaev and Shahram Akbarzadeh. 2010.
Bangladesh, Fourth Edition, by Syedur Rahman. 2010.
Polynesia, Third Edition, by Robert D. Craig. 2011.
Singapore, New Edition, by Justin Corfield. 2011.
East Timor, by Geoffrey C. Gunn. 2011.
Postwar Japan, by William D. Hoover. 2011.
Afghanistan, Fourth Edition, by Ludwig W. Adamec. 2012.
Philippines, Third Edition, by Artemio R. Guillermo. 2012.
Tibet, by John Powers and David Templeman. 2012.


Kazakhstan, by Didar Kassymova, Zhanat Kundakbayeva, and Ustina Markus. 2012.
Democratic People’s Republic of Korea, by James E. Hoare. 2012.
Thailand, Third Edition, by Gerald W. Fry, Gayla S. Nieminen, and Harold E. Smith.
2013.


Iraq, Second Edition, by Beth K. Dougherty and Edmund A. Ghareeb. 2013.
Syria, Third Edition, by David Commins and David W. Lesch. 2014.
Science and Technology in Modern China, by Lawrence R. Sullivan and Nancy Y. Liu,
2014.
Taiwan (Republic of China), Fourth Edition, by John F. Copper. 2014.
Australia, Fourth Edition, by Norman Abjorensen and James C. Docherty. 2015.
Republic of Korea, Third Edition, by James E. Hoare. 2015.
Indonesia, Third Edition, by Audrey Kahin. 2015.
Fiji, by Brij V. Lal. 2016.
People’s Republic of China, Third Edition, by Lawrence R. Sullivan. 2016.
Israel, Third Edition, by Bernard Reich and David H. Goldberg. 2016.
New Zealand, Third Edition, by Janine Hayward and Richard Shaw. 2016.
Brunei Darussalam, Third Edition, by Jatswan S. Sidhu. 2017.
Nepal, Second Edition, by Nanda R. Shrestha and Keshav Bhattarai. 2017.
Burma (Myanmar), Second Edition, by Donald M. Seekins. 2017.
Mongolia, Fourth Edition, by Alan J. K. Sanders. 2017.
Yemen, Third Edition, by Charles Schmitz and Robert D. Burrowes. 2017.
Chinese Economy, by Lawrence R. Sullivan with Paul Curcio. 2018.



Historical Dictionary of the
Chinese Economy

Lawrence R. Sullivan with Paul Curcio

ROWMAN & LITTLEFIELD
Lanham • Boulder • New York • London


Published by Rowman & Littlefield
A wholly owned subsidiary of The Rowman & Littlefield Publishing Group, Inc.
4501 Forbes Boulevard, Suite 200, Lanham, Maryland 20706
www.rowman.com
Unit A, Whitacre Mews, 26-34 Stannary Street, London SE11 4AB
Copyright © 2018 by Lawrence R. Sullivan
All rights reserved. No part of this book may be reproduced in any form or by any
electronic or mechanical means, including information storage and retrieval systems,
without written permission from the publisher, except by a reviewer who may quote
passages in a review.
British Library Cataloguing in Publication Information Available
Library of Congress Cataloging-in-Publication Data
Names: Sullivan, Lawrence R., author.
Title: Historical dictionary of the Chinese economy / Lawrence R. Sullivan.
Description: Lanham : Rowman & Littlefield, [2017] | Series: Historical dictionaries of Asia, Oceania, and the Middle East | Includes bibliographical references.
Identifiers: LCCN 2017028449 (print) | LCCN 2017039115 (ebook) | ISBN 9781538108543 (electronic) | ISBN 9781538108536 (hardcover : alk. paper)
Subjects: LCSH: China—Economic conditions—Dictionaries.
Classification: LCC HC427 (ebook) | LCC HC427 .S74 2017 (print) | DDC 330.951003—dc23
LC record available at https://lccn.loc.gov/2017028449

The paper used in this publication meets the minimum requirements of American
National Standard for Information Sciences Permanence of Paper for Printed Library
Materials, ANSI/NISO Z39.48-1992.
Printed in the United States of America.


To professors Robert Dernberger, Alexander Eckstein, Albert Feuerwerker, and Dwight Perkins, giants in the study of the Chinese economy and to
the memory of Professor Karl “Chip” Case, professor of economics,
Wellesley College.



Contents

Editor’s Foreword

xi

Preface

xiii

Reader’s Note

xv

Acronyms and Abbreviations

xvii

Maps

xxvii

Chronology

xxxi

Introduction

1

THE DICTIONARY

7

Glossary

425

Major Leaders of the People’s Republic of China

429

U.S. Ambassadors to the People’s Republic of China, 1979–2015

431

Bibliography

433

About the Authors

477

ix



Editor’s Foreword

Of the “economic miracles” that have taken place throughout the world,
admittedly more so in Asia than elsewhere, none stand out as much and are
as instructive as the one that has occurred in the People’s Republic of China
(PRC) since its creation in 1949. That there was such a miracle is beyond
doubt, China being known for shoddy goods and inefficiency then, but today
being increasingly known for high-technology articles and an endless flow of
products being exported worldwide. In the interim, the PRC has become the
world’s biggest exporter by far, the second-largest economy in the world
(and probably the biggest sooner rather than later), with an economic clout
that is turning into political and military clout as well. We should not forget it
got off to a bad start twice, initially due to Communist planning, which got
most things wrong, and then the “Great Leap Forward” of Mao Zedong,
which got virtually everything wrong. Nowadays growth is slowing down,
but the gross national product (GNP) keeps rising, and the Chinese keep
moving into new product lines, while the private sector is flourishing. More
capitalist than Communist, the economy is instructive—and intriguing—and
certainly worth knowing more about.
Thus, it is a pleasure to publish Historical Dictionary of the Chinese
Economy. Among other things, it traces the roller-coaster ride up through the
period of Communism, swiftly down during the Cultural Revolution, and
then finally upward and onward since the introduction of “Chinese-style
capitalism” as of 1978–1979. This book looks at those who messed around
with the Chinese economy, first and foremost, Mao Zedong, and those who
sorted things out and got the economy moving in the right direction, among
others, Deng Xiaoping, plus other modern-day leaders—political leaders, as
well as genuine entrepreneurs. It focuses on the major sectors and some of
the top companies. It does not claim to reveal the “secret” of success but
certainly helps us evaluate and understand it. The introduction gives an overview of the process, which is explored in greater detail in the dictionary
section, while the chronology charts the rise, fall, and renewed rise throughout the years. The bibliography directs readers to other works that may be of
interest.
This volume was written by an author who should already be familiar to
our readers, Lawrence R. Sullivan, who also coauthored Historical Dictionary of Science and Technology in Modern China and authored Historical
Dictionary of the Chinese Communist Party, three editions of Historical
Dictionary of the People’s Republic of China, as well as other books and
xi


xii



EDITOR’S FOREWORD

numerous articles on China. A professor of political science at Adelphi University, he has since ceased working as a teacher, although he has not finished telling us more about a country he understands far better than most.
This time he was aided by Paul Curcio, who previously covered China and
global markets as an editor for such media as Dow Jones, AP Financial, and
TheStreet. He also taught at the City University of New York for many years.
Their combined efforts have resulted in a work that is both informative and
amazingly easy to read, and provides an invaluable overview of the biggest
and perhaps most baffling economic miracle of all.
Jon Woronoff
Series Editor


Preface

In 2016, the People’s Republic of China (PRC) had the second-largest
macroeconomy in the world, with a nominal gross domestic product (GDP)
of $11.4 trillion and nominal per capita GDP of $8,261. With a growth rate of
6.7 percent, PRC exports in 2016 were $2.09 trillion and imports $1.5 trillion, making China the largest trading nation in the world as the country
continued to move up the value chain to high-technology products. As indicated by the creation of the Asian Infrastructure Investment Bank (AIIB),
with headquarters in Beijing, China is willing to exercise its newfound economic clout in both regional and international affairs. While relations with
the United States still dominate China’s engagement with the international
economy, China has growing economic ties with other parts of the world,
including Africa, the Association of Southeast Asian Nations (ASEAN), the
European Union, and Latin America.
With these developments in mind, Rowman & Littlefield contracted the
production of Historical Dictionary of the Chinese Economy, with almost
400 entries on various topics and biographies involving China’s domestic
and international economy. In preparing this volume, acknowledgments are
given to Professor Robert Paarlberg (John F. Kennedy School of Government, Harvard University), Nancy Liu (College of Staten Island), Audrey
and Seymour Topping, Professor Ezra Vogel (Harvard University), and Ms.
Nicole McCullough for her excellent editing.
Lawrence R. Sullivan
Professor Emeritus
Adelphi University
Garden City, New York

xiii



Reader’s Note

The Romanization used in this dictionary for Chinese language terms is the
Hanyu pinyin system, developed in the 1950s and currently used in the
People’s Republic of China (PRC). Names and places of some well-known
figures (e.g., Sun Yat-sen and Chiang K’ai-shek), and of terms associated
with the Republic of China (ROC) on Taiwan, are, however, written according to the Wade–Giles system of Romanization, which was in use on the
island until 2009. Chinese terms generally unknown to the Western reader
are italicized, as are newspapers and book titles. In Chinese and East Asian
culture, generally, the family name comes first, preceding the given names.
Past and present prominent Chinese individuals engaged in the Chinese economy are listed in alphabetical order. To facilitate the rapid and efficient
location of information and make this book as useful a reference tool as
possible, extensive cross-references have been provided in the dictionary
section. Within individual entries, terms and names that have their own entries are in boldface type the first time they appear. Related terms that do not
appear in the text are indicated as See also. See refers to other entries that
deal with this topic. Throughout the dictionary, the ratio of the Chinese
currency (the renminbi, or “people’s currency”) is set at 6.6 to one U.S.
dollar, except when citing official figures from earlier years.

xv



Acronyms and Abbreviations

ABC

Agricultural Bank of China

ACTA

ASEAN–China Free Trade Area

ADB

Asian Development Bank

AIG

American International Group

AIIB

Asian Infrastructure Investment Bank

AMAC

Asset Management Association of China

AMC

asset management company; American Motors Corporation

AmCham

American Chamber of Commerce China

APC

agricultural producers’ cooperative

APEC

Asia–Pacific Economic Cooperation

API

active pharmaceutical ingredient

APT

ASEAN + 3 (the PRC, Japan, and Korea)

ASEAN

Association of Southeast Asian Nations

ATDC

Agricultural Technology Demonstration Center

ATM

automated teller machine

AVIC

Aviation Industry Corporation of China

B2B

business-to-business

B2C

business-to-consumer

BAIC

Beijing Automobile Industry Corporation

BAT

British American Tobacco

BFA

Bo’ao Forum for Asia

BGI

Beijing Genomics Institute

BOC

Bank of China

BOCOM

Bank of Communications

BPO

business process outsourcing

BRICS

Brazil, Russia, India, China, South Africa

BSB

Broad Sustainable Buildings

BTCE

billion tons coal equivalent
xvii


xviii



ACRONYMS AND ABBREVIATIONS

BTG

Beijing Tourism Group

BYD

“Build Your Dreams”

C2C

consumer-to-consumer

CAAC

Civil Aviation Administration of China

CAD

computer-aided design

CAFTA

China–ASEAN Free Trade Agreement

CAIC

China Aviation Industry Corporation

CAS

Chinese Academy of Sciences; China Appraisal Society;
Chinese Accounting System

CASC

China Aerospace Corporation

CASIC

China Aerospace Science and Industry Corporation

CASS

Chinese Academy of Social Sciences

CASTC

Chinese Aerospace Science and Technology Corporation

CBRC

China Banking Regulatory Commission

CCB

China Construction Bank

CCEMA

China Chemical Enterprise Management Association

CCIEE

China Center for International Economic Exchange

CCIIA

China Chemical Intelligence Information Association

CCP

Chinese Communist Party

CCTV

China Central Television

CDB

China Development Bank

CDIC

Central Discipline Inspection Commission

CDMA

code-division multiple access

CECEP

China Energy Conservation and Environmental Protection
Group

CEE

Central and Eastern Europe

CEIBS

China–Europe International Business School

CEO

chief executive officer

CEPT

China Environmental Project Tech

CETV

China Educational Television

CFETS

China Foreign Exchange Trading System

CFFEX

China Financial Futures Exchange

CGCCUS

China General Chamber of Commerce–U.S.


ACRONYMS AND ABBREVIATIONS

CHALCO



Aluminum Corporation of China

CHINATEX China National Textiles Import and Export Corporation
CIC

China Investment Corporation

CICC

China International Capital Corporation

CICPA

Chinese Institute of Certified Public Accountants

CIETAC

China International Economic and Trade Arbitration
Commission

CIMC

China International Marine Containers Group

CIRC

China Insurance Regulatory Commission

CITIC

China International Trust and Investment Corporation

CMB

China Merchant Bank

CMC

China Music Corporation

CMS

Cooperative Medical System

CNAIC

China National Automotive Industry Corporation

CNCBD

China National Center for Biotechnology Development

CNGC

China National Gold Group

CNNIC

China Internet Network Information Center

CNOOC

China National Offshore Oil Corporation

CNPC

China National Petroleum Corporation

CNR

China North Locomotive & Rolling Stock Corporation

CNSA

China National Space Administration

CNTC

China National Tobacco Corporation

CoCom

Coordinating Committee for Multilateral Export Controls

COFCO

China National Cereals, Oils, and Foodstuffs Corporation

COMAC

Commercial Aircraft Corporation of China

COMECON Council of Mutual Economic Assistance
COSCO

China Ocean Shipping Company

CPA

certified public accountant

CPI

Consumer Price Index

CPPCC

Chinese People’s Political Consultative Conference

CPU

central processing unit

CRC

China Railway Corporation

xix


xx



ACRONYMS AND ABBREVIATIONS

CRF

China Reform Foundation

CRM

customer relationship management

CRRC

China Railway Rolling Stock Corporation

CSGC

China South Industries Group Corporation

CSI

China Stock Index

CSR

China South Locomotive & Rolling Stock Corporation

CSRC

China Securities Regulatory Commission

CTO

chief technology officer; China Trademarks Office

CYL

Communist Youth League

CYPC

China Yangzi Power Co.

DCCI

Data Center of China

DES

debt-equity-swaps

DJI

Dajiang Innovation Technology Company

DPP

Democratic Progressive Party

DPRK

Democratic People’s Republic of Korea (North Korea)

DRC

Development Research Center

DSP

digital signal processing

DWT

deadweight tons

DZT

Dazhong Transportation Company, Ltd.

EAM

enterprise asset management

ECB

European Central Bank

EEZ

exclusive economic zone

ERP

enterprise resource planning

ETF

exchange traded fund

EU

European Union

EV

electric vehicle

FAW

First Automobile Works

FBIS

Foreign Broadcast Information Service

FDA

Food and Drug Administration

FDI

foreign direct investment

FEC

foreign exchange certificate

FIE

foreign-invested enterprise


ACRONYMS AND ABBREVIATIONS



xxi

FOCAC

Forum on China–Africa Cooperation

FTA

free-trade area

FTC

foreign trade corporation

FTZ

free-trade zone

FYEP

Five-Year Economic Plan

G20

Group of Twenty (nations)

GAC

Guangzhou Automobile Corporation

GATT

General Agreement on Tariffs and Trade

GDP

gross domestic product

GDR

German Democratic Republic

GEM

Growth Enterprise Market

GIOV

gross industrial output value

GIS

Government Insurance Scheme; geographic information
system

GITIC

Guangdong International Trust and Investment Corporation

GMO

genetically modified organism

GMP

good manufacturing production

GMV

gross merchandise volume

GNP

gross national product

GPRS

general packet radio service

GPS

global positioning system

GriTeK

General Research Institute for Nonferrous Metals
Semiconductor Materials Co.

GSM

Global Systems for Mobile Communications

GW

gigawatt

HFT

high-frequency trading

HGP

Human Genome Project

HSBC

Hong Kong and Shanghai Banking Corporation

HSR

high-speed rail

IAEA

International Atomic Energy Agency

IAI

Israel Aerospace Industries

ICBC

Industrial and Commercial Bank of China

IAS

Insurance Association of China


xxii



ACRONYMS AND ABBREVIATIONS

ICA

Institute for Computer Applications

ICESR

Institute for Chinese Economic Structural Reform

ICT

Institute of Computing Technology; information
communication technology

ILO

International Labour Organization

IMF

International Monetary Fund

INS

inertial navigational systems

IOC

International Olympic Committee

IPO

initial public offering

IPR

intellectual property rights

IPTV

Internet Protocol Television

ITER

International Thermonuclear Experimental Reactor

JV

joint venture

km/h

kilometers per hour

KMT

Kuomintang (Nationalist Party)

KW

kilowatt

LCD

liquid crystal display

LED

light-emitting diode

LIS

Labor Insurance Scheme

LNG

liquefied natural gas

LPG

liquefied petroleum gas

LPGA

Ladies Professional Golf Association

LSE

London School of Economics

MAT

mutual aid team

MEP

Ministry of Environmental Protection

MFN

most favored nation

MIIT

Ministry of Industry and Information Technology

MMS

multimedia messaging services

MOF

Ministry of Finance

MOFCOM

Ministry of Commerce

MOFERT

Ministry of Foreign Economic Relations and Trade

MOFTEC

Ministry of Foreign Trade and Economic Cooperation


ACRONYMS AND ABBREVIATIONS



MOHURD

Ministry of Housing and Urban–Rural Development

MOR

Ministry of Railways

MOT

Ministry of Transport

MRT

Ministry of Radio and Television

MW

megawatt

NAFTA

North American Free Trade Agreement

NAO

National Audit Office

NATO

North Atlantic Treaty Organization

NBA

National Basketball Association

NBS

National Bureau of Statistics

NCER

National Center for Economic Research

NCPG

North China Pharmaceutical Group

NDB

New Development Bank

NDRC

National Development and Reform Commission

NEA

National Energy Administration

NGO

nongovernmental organization

NGS

next-generation sequencing

NHL

National Hockey League

NORINCO

China North Industries Group Corporation

NPC

National People’s Congress

NPL

nonperforming loan

NRC

National Reconstruction Commission

NTB

nontariff barrier

NYMEX

New York Mercantile Exchange

NYSE

New York Stock Exchange

O2O

online-to-offline

OBOR

“One Belt, One Road”

OCR

optical character recognition

ODI

outward direct investment

OECD

Organization of Economic Cooperation and Development

P2P

peer-to-peer

P&C

property and casualty

xxiii


xxiv



ACRONYMS AND ABBREVIATIONS

PBOC

People’s Bank of China

PBX

private branch exchange

PC

personal computer

P/E

price-earnings

PGA

Professional Golf Association

PICC

People’s Insurance Company of China

PLA

People’s Liberation Army

PLAAF

People’s Liberation Army Air Force

PPP

purchasing power parity

PRC

People’s Republic of China

QDII

Qualified Domestic Institutional Investor

QFII

Qualified Foreign Institutional Investor

QSR

quick-service restaurant

R&D

research and development

RCETSD

Research Center on Economics, Technology, and Social
Development

RMB

renminbi = “people’s currency”

RNA

ribonucleic acid

ROC

Republic of China

ROK

Republic of Korea (South Korea)

SAC

Securities Association of China

SAE

Sina App Engine

SAFE

State Administration of Foreign Exchange

SAFER

State Administration of Foreign Economic Relations

SAIC

Shanghai Automotive Industry Corporation; State
Administration of Industry and Commerce

SAPPRFT

State Administration of Press, Publications, Radio, Film, and
Television

SAR

special administrative region

SASAC

State-Owned Assets Supervision and Administration
Commission

SAW

Second Automobile Works

SAWS

State Administration of Work Safety


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