Suggested reading For further reading related to specific economic topics, see the suggestions for further reading following each individual chapter. A wide variety of academic journals now carry articles on the Chinese economy. Of the China-related jou

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Chapter 1
The Yellow river
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1. A Brief History of China

• 1.1 The origins of the nation
• 1.2 Rise and fall of the empire
• 1.3 China in the new millennium

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Keywords

• Chinese nation,
• Chinese civilization,
• dynasty,
• Confucius,
• feudalism,
• revolution,
• collectivism

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1.1 The origins of the nation

• 1.1.1 Cradle of the nation
• 1.1.2 Xia, Shang and Zhou dynasties

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King Wu (c 1066 BC)Here Luoyi, a place
in central China is the center under
heaven, from which all other states bear same
distance when they come to pay tributes.(ci
tianxia zhi zhong, sifang rugong daoli jun)
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Hezun Early stories about China
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1.2 Rise and fall of the empire

• 1.2.1 Qin, Han and Jin dynasties
• 1.2.2 Sui, Tang and Song dynasties
• 1.2.3 Yuan, Ming and Qing dynasties
• 1.2.4 Fall of the empire

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Events in the early 20th century

• 1912, Chinas final dynasty, the Qing, was
  replaced by the Republic of China (ROC)
• 1921, Chinese Communist Party (CCP) was founded
  
• 1931, Japan invaded the Northeast China
  (Manchuria)
• 1937, Japan invaded China and the War of
  Resistance Against Japan began
• 1945, Japan surrendered unconditionally and,
  thereafter, the Civil War between the
  Nationalists and the Communists broke out
• 1949, the Peoples Republic of China (PRC) was
  founded, followed by the large-scale land
  reform and socialist transformation.

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1.3 China in the new millennium

• 1.3.1 Socialism in transition
• 1.3.2 Capitalism, Chinese style?

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Figure 1.1 A dynamic view of the Chinese economy,
AD 1500-2000 Source Created by the author based
on Maddison (2001).
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Confucius said

• Since the age of 15, I have devoted myself
  to learning
• since 30, I have been well established
• since 40, I have understood many things
  and have no longer been confused
• since 50, I have known my heaven-sent duty
• since 60, I have been able to distinguish right
  and wrong in other peoples words and
• since 70, I have been able to do what I
  intended freely without breaking the rules.

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Case study 1

• Understanding Chinese culture

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Table 1.1 Confucianism versus Taoism some basic
facts
Confucianism Taoism
Founders name Kongzi (Confucius) Laozi (Lao Tzu)
Founders year of birth 551 BC c. 600 BC
Founders place of birth / living Qufu lower reaches of Yellow river Luyi/Luoyia middle and upper reaches of Yellow river
How the founder suffered from river flood Very serious Not serious
Overall goal Find peaceful and harmonious place of life No overall goal
Rule of behavior Follow a certain relationship between people Follow the life according to the Tao
Attitude toward flood control Narrow channel by high levees Wider flood plain between lower levees
(a) Laozi spent most of his career first at Luoyi
(capital of the Eastern Zhou dynasty) and later
at the mountain areas in western China.
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Chapter conclusion Starting with a brief
history of China (called zhongguo in Chinese,
meaning center under heaven), this chapter is
focused on various factors that could have shaped
Chinas existing political, economic and cultural
characteristics. It investigates the causes and
consequences of Chinas periodic changes of
feudal dynasties as well as their political,
economic and cultural implications to the Chinese
economy in the new millennium.
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Suggested reading

• Analects of Confucius (lunyu) by Confucius (an
  English text is available at http//www.confucius
  .org/lunyu/lange.htm).
• Bolton, P., and G. Roland (1997). The Breakup of
  Nations A Political Economy Analysis, The
  Quarterly Journal of Economics, Volume 112, pp.
  1057-89.
• Friedman, D. (1977). A Theory of the Size and
  Shape of Nations, Journal of Political Economy,
  Volume 85(1), pp. 59-77.
• Shiji (records of the grand historian) by Sima
  Qian (an English introductory text is available
  at http//en.wikipedia.org/wiki/Records_of_the_Gr
  and_Historian).
• Tao Te Ching (or daodejing) by Lao Tzu (or Laozi)
  (an English text is available at
  http//academic.brooklyn.cuny.edu/core9/phalsall/t
  exts/taote-v3.html).