Introduction

A state-directed economic model, which refers to a system wherein the state maintains a guiding role in the economy based on the functioning of a market mechanism that is instrumental to the state, has experienced a rapid proliferation during recent decades. As a typical example of a state-directed economies, China has developed a highly institutionalised economic system characterised by a deep integration between the state and the market. This book aims to answer the questions as to how and why the prevalence of the state-directed economic model in China has challenged the existing international order.

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Notes

GDP at Market Prices (Current US$) (2016). The World Bank. http://data.worldbank.org/indicator/NY.GDP.MKTP.CD. Accessed 1 September 2018.

See, e.g., Bremmer (2009). Ibid, p. 40. ‘Capitalism’, in Merriam-Webster’s Collegiate Dictionary (11th edn, Merriam-Webster 2003). Whitley (1999), pp. 6–7.

SIEs can be used to refer to the enterprises in which a state entity holds shares. These enterprises, compared to traditional SOEs, usually possess an independent personality and maintain a modernised corporate governance mechanism. However, the term ‘SIEs’ is often seen as interchangeable with and thus conflated with the term ‘SOEs’. See Chap. 4 of this book.

See, e.g., Szamosszegi and Kyle (2011). Lardy (2014), Chapter 3. Liebman and Milhaupt (2015), p. xiv. Black et al. (2012b). Black et al. (2012a). Mises and Greaves (2011), pp. 10–12. Mandel (1986), p. 6. Lang (2011), pp. 3–10. See also Gilpin (2011), pp. 309–312.

Chapter 5, Sect. 5.1 of this book. See also WTO The Multilateral Trading System — Past, Present and Future. WTO. https://www.wto.org/english/thewto_e/whatis_e/inbrief_e/inbr01_e.htm. Accessed 1 September 2018.

Chapter 5, Sects. 5.2 and 5.3 of this book. Chapter 5, Sect. 5.1.

See, e.g., Agreement Between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Arab Republic of Egypt, for the Promotion and Protection of Investments (11 June 1975) preamble.

See, e.g., Model Text [Draft] Agreement […] Between The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of […] for the Promotion and Protection of Investments (2008) preamble. also German Model Treaty — Treaty Between the Federal Republic of Germany and […] Concerning the Encouragement and Reciprocal Protection of Investments (2008) preamble.

See, e.g., Treaty Between the United States of America and the Oriental Republic of Uruguay Concerning the Encouragement and Reciprocal Protection of Investment (11 April 2005).

Although scholars have consistently delved into how China is involved in various international economic regimes since China has opened up to the international market, only a few articles directly link China’s involvement with its state-directed economic system. Du (2014). See also Wu (2015) pp. 313–350.

Chapter 6, Sect. 6.3 of this book. ‘Public Law’, in A Dictionary of Law (8th edn, Oxford University Press 2015). ‘Private Law’, in A Dictionary of Law (8th edn, Oxford University Press 2015). Walker (2002), p. 259. See, e.g., Sui and Ma (2015), pp. 145–148. Clarke (2015), pp. 35–47. Ibid, p. 47. Clarke (2004), pp. 27–30. See also, Weintraub and Kumar (1997), pp. 8–10. Bremmer (2010), p. 26. Lin and Milhaupt (2013). Szamosszegi and Kyle (2011), pp. 1–3. Marx (2010), Preface. Marx (1976), pp. 290–291. Harvey (2015), pp. 62–29. Xie and Yang (2013), pp. 13–14. Yu (2007), pp. 25–27. Wang (2013a, b), pp. 19–20. Lu and Lv (2013), pp. 10–11. Liu (2009), pp. 13–14. See, e.g., Bremmer (2010). Ljungqvist et al. (2015), pp. 31–32. Musacchio and Lazzarini (2012), pp. 38–39. Zhang (2010), pp. 64–65. This purpose is central to the philosophy of the ‘socialist market economy’. See Yu (2007). Huchinson and Duncan (2012), p. 83.

In the most recent five-year plan in China, it is noted that the leadership of the state and the CPC should continue to be essential to China’s economic development. See Guojia Wunian Guihua (国家五年规划) [National Five-Year Guideline>. China. http://www.china.com.cn/chinese/zhuanti/wngh/1163433.htm. Accessed 1 September 2018 (in Chinese).

See, e.g., Chap. 2, Sect. 2.2 of this book. Wright and Nguyen (2000), pp. 169–170. Daftary (2014), pp. 711–712. Chapter 6, Sect. 6.3.1.2 of this book. See, e.g., Chap. 2, Sect. 2.1.3 of this book. Legislation Law of the People’s Republic of China (Adopted on 15 March 2000). Chapter 5, Sects. 5.2 and 5.3 of this book. Chapter 6, Sects. 6.2.2 and 6.3.3.1.

Chapter 6, Sect. 6.2.2. See also Foreign Investment Law of the People’s Republic of China (Draft for Comments) (2015).

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