nep-cna New Economics Papers
on China
Issue of 2023‒04‒24
three papers chosen by
Zheng Fang
Ohio State University

  1. Implications of China's Growing Geo-Economic Influence for the EU: Addressing Critical Dependencies in the Green Transition By Olga Pindyuk
  2. China’s monopolization of newspaper ownership in the context of changing policies By Aya KUDO
  3. Household-level welfare effects of land expropriation: Evidence from China By Randolph, Hannah

  1. By: Olga Pindyuk (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: Although China has become a major trading partner of the EU, the EU-China relationship has deteriorated over the last decade. This has been demonstrated, for example, by disputes over trade issues, unequal treatment of EU investors by Beijing, frictions over the transfer of intellectual property, and human rights violations. The EU’s critical dependency on supplies from China, which became evident during the COVID-19 pandemic, further complicates the relationship. The issue of the green transition has a central importance in the context of intensified geo-economic competition and possible decoupling from China, as here the EU has critical dependencies on the country, which is responsible for about 60% of global extraction of rare earth elements, about 60-65% of global processing of lithium and cobalt, and nearly 90% of global processing of rare earth elements. So far, EU policy with respect to China has lacked co-ordination and solidarity, with the splits running across countries, institutions and economic sectors. This makes it challenging for the EU to develop a unified strategy toward Beijing. This paper examines the issues and sets out our suggestions for the policies the EU and Austria can undertake to decrease the bloc’s dependency on China in supplies of critical inputs for its green transition and to minimise the vulnerabilities of their economies.
    Keywords: China, European Union, Geopolitics, Geo-economic policy, Renewable energy, Energy security, Energy transition, Critical materials, Rare earth elements
    JEL: F02 F50 F52 F64 Q28 Q48 Q58
    Date: 2023–03
  2. By: Aya KUDO (Research Fellow of the Japan Society for the Promotion of Science)
    Abstract: This paper examines the mechanism of the Chinese Communist Party’s (CCP) monopolization of media outlets, especially newspaper ownership, from the 1950s by analyzing the process of the institutional development of newspaper ownership. The CCP’s substantial monopolization of newspaper ownership and the exclusion of private and foreign capital influence on media outlets leaves the CCP in the position of the owner of all newspapers. This study reveals institutional changes by examining the institutional development and path dependency of “newspaper owner-sponsor institutions” (主管主办单位制度) from the perspective of Historical Institutionalism. The Newspaper OwnerSponsor Institution evolved as an institution to ensure that the party owns newspapers while avoiding controversies over the property rights of newspapers. The development of the Newspaper Owner-Sponsor Institution was fostered by the threat of private and foreign capital inflows. The Newspaper Owner-Sponsor Institution has led to the stability of the control over newspapers, but the institution might generate instability because the CCP is stuck in a path dependency and cannot change the institution.
    Keywords: China, Chinese Communist Party, Newspaper, Ownership, Institution, Non-public capital
    Date: 2023–03
  3. By: Randolph, Hannah
    Abstract: A number of developing countries use land expropriation policies to expand cities and develop peri-urban areas. In China alone, an average of 1, 600 square kilometers were expropriated annually between 2004 and 2018. The impact of this urban development strategy on expropriated households is not well-understood. I estimate the causal effect of expropriation on Chinese households' livelihood choice and earned income, relying on panel data and comparison to non-expropriated households to observe how household-level outcomes change in response to expropriation. Controlling for baseline outcomes, I find that for at least the first two years, expropriation reduces household agricultural participation and production but does not increase other types of income-generating activities. The result is reduced food security and ability to earn income. Compensation paid to households does not fully offset these effects in cases where households lose all their land or are uncompensated. These findings suggest concrete policies governments can implement to lessen the negative welfare impacts of urban development on expropriated households: higher compensation rates, development of rural non-agricultural labor markets, and direct food assistance to expropriated households.
    Keywords: Land rights, Land expropriation, Household welfare, China
    JEL: H13 O15 Q15
    Date: 2023–03–03

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