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Urban Processes in the Face of China's Transition to a Socialist Market Economy

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  • F Wu

    (Centre of Urban Planning and Environmental Management, University of Hong Kong, Pokfulam Road, Hong Kong)

Abstract

In this paper the urban process in the face of China's transition to a market economy is examined from the perspective of political economy. Before economic reform, China operated a centrally planned economy. Production activities were organized on the basis of sectoral departments of the central government, and the reproduction of labour was carried out through self-contained development. The dominance of the state stemmed from its role in resource allocation. Economic reform, launched in 1978, introduced market mechanisms to urban processes in China. Through fiscal, housing, and land reforms decisionmaking was decentralized. Under so-called ‘comprehensive development’, municipalities are now required to organize urban development. The state has lost its dominant status in budgetary investment. Self-raised, extrabudgetary funds increased rapidly. Work units still extract surplus value efficiently but have had to become the major purchasers in housing markets because workers in the public sector cannot afford housing. The persistence of state ownership in the mode of production makes it unlikely that market forces will play a leading role in urban development in China.

Suggested Citation

  • F Wu, 1995. "Urban Processes in the Face of China's Transition to a Socialist Market Economy," Environment and Planning C, , vol. 13(2), pages 159-177, June.
    • Handle: RePEc:sae:envirc:v:13:y:1995:i:2:p:159-177
    DOI: 10.1068/c130159
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    References listed on IDEAS

    as
    1. Barry Hindess & Paul Hirst, 1977. "Mode of Production and Social Formation," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-15749-5, September.
    2. Barry Hindess & Paul Hirst, 1977. "Concepts of Mode of Production and Social Formation," Palgrave Macmillan Books, in: Mode of Production and Social Formation, chapter 3, pages 46-62, Palgrave Macmillan.
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