(14)1 Lecture 1 Administrative History of China

(14)2 Stage 1: Royal Administration (Pre-1912) Administration served royal families. 1) A highly centralized structure of power. 2) A formal examination system, Kejuzhi. 3) Morality was deemed as essential for good governance. 4) Sophisticate administrative institutions and a delicate system of division of labor.

(14)3 Stage 2. State Administration ( ) Administration served the authoritative state with a Leninist party as an instrument of political struggle the Republic of China (ROC, ) The Kuomintang Party (KMT) founded the Nationalist regime in 1925 and established the State Council as the highest executive branch. In 1929 the Five-Yuan System, including the Executive Yuan, the Judicial Yuan, the Legislative Yuan, the Examination Yuan, and the Control Yuan, was established according to Sun Yatsen’s Five-Power theory. Nonetheless, the KMT Party was in full control of the state apparatus. Due to the Japanese invasion ( ), the two Civil Wars ( , ) between the KMT and the Chinese Communist Party (CCP), and the actual warlord control over many provinces, the administration of ROC mainly served wars.

(14) Period of the PRC (1949-present) Administration was driven by a communist ideology and focused on class struggle, which culminated during the Cultural Revolution ( ). (1) Government was under strict control of the party. Administration was basically driven by politics. (2) State-Owned Enterprises (SOEs) almost monopolized industries and commerce. (3) The government was omnipotent and deprived or penetrated most social spheres.

(14)5 Major features of administration ( ) 1. Politics-driven Using political ideology in recruiting personnel, setting major work tasks, and evaluating governmental performance. Decisions were highly politicized. 2. A top-down order-driven system Maintaining a strong capacity of the party to mobilize the whole country. Control and compliance were emphasized. 3. Omnipotent functions Direct economic functions and social functions

(14)6 Stage 3. Public Administration (Post-1978) Administration increasingly served demands from citizens. Publicness is a matter of degree. 1) Rise of pragmatism and goal changes; 2) Major reforms to modernize and globalize administration; 3) More accessible, accountable, and responsive administration.

(14)7 Changing contexts for public administration Economic marketization and Chinese miracle Social change and rise of civil society More liberal political environment

(14)8 Major features of administration (1978-present) 1. Performance-driven Performance, especially economic goals, are sought. 2. Increasing decentralization Rely on local incentives and innovations 3. Limited government Cut back to basics Deregulation Privatization

(14)9 The story of Rong Family: A miniature of China’s transformation Before 1949, Rong family controlled half of flour industry and textile industry in China. After 1949, Yiren Rong remained in Shanghai. In the 1950s, he contributed his assets to the state and became a high-rank official. He was a symbol of red capitalist. After Deng came into power, he was needed by reformers. He was trusted to establish the China Citic Bank in In 1993, he became the vice president of China. He was reported to be the richest mainland Chinese in 1999 and 2000 by the Hurun Report. His son, Zhijian Rong, was also top 10 of Hurun Report 2008.

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(14)11 Burgeoning international trade China’s international trade in goods is now no. 1 in the world.

(14)12 The world’s major destiny of Foreign Direct Investment Between 1979 and 2006, totally FDI actually utilized in China accumulated to USD 691 billion.

(14)13 Global cities in China China is expected to become the largest international tourist market in 2020.

(14)14 Two Major Forces Shaping the Transition of PA in China 1. The modernization momentum; 2. The historical legacy.