This very rich opus presents us with the key output of the 21st CEA (Chinese Economic Association-UK) and the second CEA–Europe joint annual conference held in 2010, edited by Xiaolan Fu (director of the Programme for Technology and Management for Development, University of Oxford). The 15 articles are split into three main sections – China's adjustment to the economic crisis; China and the world economy; China's growth potential – and are, without exception, of high academic standard. They provide varied approaches to the key issue addressed during the conference, ranging from pure “econometric” analyses of some questions (for instance “A curious partnership in global imbalances” by Zhang Zhichao, Frankie Chau and Nan Shi, a powerful and original model to analyse the influence and components of Chinese purchases of US treasuries) to more “high-level” dissertations. A (rare) example of the latter is “China and the world” by Hu Angang, one of the more biased papers, and probably less useful at the time of publishing, since the book was only released two years after the conference was held. This paper is neither based on a rich base of quoted references nor updated with the most recent data, which harms the relevance of its argument. In the same vein, “The rise of China: implications for global stability and sustainability,” by Carl J. Dahlman, is more balanced and pertinent in the reviewer's opinion.
The two-year publication lag also unfortunately makes the value of some contributions more historical than long term. This is the case for “The sustainability of China's export growth” by Fu Xiaolan and Xu Didi: even though the key point is to check how sustainable the “export model” (not the trade surplus-based economy) will be, the most recent period since the time of writing has indented some (not all, since the point about the rise of “SOEs” is particularly well-taken) of the conclusions.
The contributors' mix is extremely well-balanced, comprising both foreign and Chinese scholars working within and outside of China. Most of the sources used are first-hand (meaning Chinese statistics or documents issued by official entities or of academic origin), and notes are numerous and of very high quality. Almost all the contributions have long bibliographies, which constitute an extremely useful base for further research on the current Chinese economy.
One should also pay tribute to the thorough editing work conducted by Fu, who presents us with very homogeneous, standardized contributions. Beyond the diversity of methodologies and approaches adopted, all articles are easy to read, coherent, logically organized in the various sequences of the book and follow a uniform pattern which makes consultation very “friendly” and suitable for any research work based on this publication.
Obviously, not all the issues covered are of similar importance. Li Jizhen and Pu Xin's chapter on “Creativity, management and success of research projects: a cross-country comparison” addresses one of the key questions on the future competitiveness of China, and offers probably one of the clearest answers to this debate. Their conclusion is that the “Chinese model” is so different that it strengthens the view that no historical precedent can be construed as “the” future model for China and that, furthermore, “marketing skills” have been much more of a factor than strategic choices in research or the level of expertise reached in China. Similarly, Xu Jinghua's article on “Technological innovation, productivity and competitiveness: evidence from China's IT manufacturing sector” sheds a fascinating light on another key issue in the future competitiveness of China. It contrasts somewhat with the former chapter, as it pays more attention to Chinese potential, while explaining some of the limitations encountered in this particular sector in the past (and which will continue in the near future to hinder “conquering” development in this key IT sector).
Conversely, some of the contributions, while using a very thorough approach, offer interesting views but probably lack the breadth and penetration which would make them useful to further extrapolation: for example, while the title “Dissecting Chinese ODI: Dragon multinationals in Italy” by Valeria Gattai, indicates a particularly relevant case and elicits high expectations, the conclusions remain limited. The same could be said about the chapter “Guanxi as competitive advantage during economic crises: evidence from China during the recent global financial crisis” by Susanne Ruehle.
Overall, the book should be warmly recommended to scholars and students trying to analyse the recent period, a critical one for China's involvement in the global economy and its emergence as a player theoretically empowered (though not always willing or practically able) to positively influence the global imbalances. Fu Xiaolan's “Preface” and Woo Wing Thye's “Foreword” on “Sense and sensibility in the reduction of US-China trade tension at the G20 summit in Cannes in 2012” both update us on what can be said two years after the write-ups had been initiated, and also bring a “bird-eye” view, wrapping up the main themes and issues which make the volume consistent. That said, the reader probably remains in want of a chapter on the monetary debates revolving around the yuan issue, and also of a synthesis summarizing what this book can bring to our general understanding of the situation after the crisis as viewed from an “Asian” angle.
