National Power and the Historical Transformation of the Chinese Economy

Author: Cheng Nianqi
Publisher:
Publish Date: 2006-09-01
Features: The research approach of this work differs from pure economic history, adopting a socio-economic history perspective—examining the political and economic systems together and then incorporating the tax and fiscal system. The interaction and transformation among these three elements present a three-dimensional picture. As is well known, the discussion of the relationship between politics and economics is an old topic, yet for a long time, there was no "mediator" to bridge the two, making them like two loosely pasted skins. The long-term research of Mr. Cheng Nianqi has finally revealed that the fiscal system has an effect in linking the two. Examining the causes and effects at both ends, many puzzles can be resolved. For example, the shift of fiscal revenue from being primarily based on taxpayers to being primarily based on land is mistakenly believed to promote private land ownership. In reality, under the expansion of the fiscal market, the burden of small peasants and landlords only increases without decrease, and property rights become even more unstable. Landlords, unable to help but switch to tenant farming, gradually decrease in number, becoming passive rent receivers. The scale of small peasants' operations becomes increasingly small, with extremely low capital investment. All of these are noteworthy junctures. The state power in China is so powerful, penetrating everything and controlling everything; its impact on the economic development pattern can never be exaggerated. To discuss the economy without considering the fiscal system, to only look at the total accumulation of the economy, to be mesmerized by the superficial prosperity of cities, and to ignore the economic and fiscal distribution pattern is like walking into a foggy area, filled with confusion.
The research approach of this work differs from pure economic history, adopting a socio-economic history perspective—examining the political and economic systems together and then incorporating the tax and fiscal system. The interaction and transformation among these three elements present a three-dimensional picture. As is well known, the discussion of the relationship between politics and economics is an old topic, yet for a long time, there was no "mediator" to bridge the two, making them like two loosely pasted skins. The long-term research of Mr. Cheng Nianqi has finally revealed that the fiscal system has an effect in linking the two. Examining the causes and effects at both ends, many puzzles can be resolved. For example, the shift of fiscal revenue from being primarily based on taxpayers to being primarily based on land is mistakenly believed to promote private land ownership. In reality, under the expansion of the fiscal market, the burden of small peasants and landlords only increases without decrease, and property rights become even more unstable. Landlords, unable to help but switch to tenant farming, gradually decrease in number, becoming passive rent receivers. The scale of small peasants' operations becomes increasingly small, with extremely low capital investment. All of these are noteworthy junctures. The state power in China is so powerful, penetrating everything and controlling everything; its impact on the economic development pattern can never be exaggerated. To discuss the economy without considering the fiscal system, to only look at the total accumulation of the economy, to be mesmerized by the superficial prosperity of cities, and to ignore the economic and fiscal distribution pattern is like walking into a foggy area, filled with confusion.