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Chapter 15
Mt. Hua (Huashan) is located near the southeast corner of
the Ordos Loop section of the Yellow River basin, south of
the Wei River valley, at the eastern end of the Qinling
Mountains, in southern Shaanxi province. Mt. Hua is
usually referred to one of the birthplaces of the ancestors of
the Hua-Xia (Han) Chinese now living in Hong Kong,
Macau, Taiwan, and mainland China.
Mt. Hua, Shaanxi
Source: http://en.wikipedia.org/wiki/Mount_Hua
15. Understanding the ChineseSpeaking Economies
15.1 The greater China area
15.2 A multiregional economic
comparison
15.3 Cross-Strait economic relations
15.4 Overseas Chinese economics
Keywords:
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greater China,
spatial (dis)economies,
complementary condition,
Hong Kong,
Macau,
Taiwan,
cross-Strait relations,
peaceful reunification,
overseas Chinese
15.1 The greater China area
15.1.1 Hong Kong
15.1.2 Macau
15.1.3 Taiwan
15.1.4 Summary
Figure 15.1 Hong Kong and Macau
Figure 15.2 The Taiwan Strait
15.2 A multiregional
economic comparison
15.2.1 Social and economic
differences
15.2.2 Complementary
conditions
15.2.3 Summary
Table 15.1 Basic indicators of the greater China area
Indicator
Taiwan
Hong Kong
Macau
Mainland
Area (sq. km)
36188
1098
19
9600000
Population (million persons)
22.5
6.8
0.4
1284.5
GDP (2003, billion US$)
286.8
158.6
7.9
1416
GDP per capita (2003, US$)
12751
23311
17782
1090
Average growth rate of GDP per
5.50
3.98
2.03a
8.04
capita (1978–2002, %)
Exports (2003, billion US$)
144.2
224.6(15.7b) 2.6
438.4
Life expectancy (1990s,
77/71.8
81.2/75.8
71/68
Female/male, years)
Adult literacy rate (1990s,
86/96
88/96
95.7d
73/90
c
Female/male, %)
(a): Growth rate for 1982–2002.
(b): Exports of Hong Kong goods (re-exports are excluded).
(c): ADB (1996, pp. 11 and 28), SSB (1996, pp. 769, 781 and 803);
(d): Xie (1992, p. 115) for labor population.
Source: websites of the respective governments except those that are noted otherwise.
Table 15.2 Mutually complementary conditions in the greater China area
Economy Advantages
Mainland Adequate and various agricultural
China
products, energy, industrial
materials, excess labor, some hightech products, and huge domestic
market.
Disadvantages
Relatively shortage of advanced
equipments; shortage of
international management
experience and economic
infrastructures, especially in the
western, inland provinces.
Taiwan
Shortage of energy and industrial
resources, limited domestic market,
and insufficiency of and high costs
of labor supply.
High capital saving, advanced
equipment ready to move out,
vanguard agricultural and industrial
products, and management
experience.
Hong
Capital surplus, favorable
Kong and convenient conditions for
Macau
international trade, the freest
economic environment, and
management experience in
commercial and financial markets.
Severe shortage of agricultural and
industrial resources, especially fresh
water, foodstuff, energy, and land
and deficiency of labor; limited
domestic market.
15.3 Cross-Strait economic
relations
15.3.1 Historical evolution
15.3.2 Bilateral economic cooperation
15.3.3 Direct air and shipping services
15.3.4 Future perspective
Table 15.3 Military expenses, Taiwan and mainland China
Taiwan
Mainland
China
Defense expense (US$ 100 million)
104
562
Forces (1000 persons)
442
3,031
Defense expense as % of GNP
4.7
2.7
Defense expense as % of budget
20.0
16.2
Per capita defense (US$)
494
48
Forces per 1000 population
21.0
2.6
Item
Sources: The US Academy of Defense Agency (1993) and SSB (1996, pp. 230 and
580).
Figure 15.3 Links for air and shipping services between Taiwan and mainland China
15.4 Overseas Chinese economics
15.4.1 A history of Chinese emigration
15.4.2 Distribution of overseas
Chinese
15.4.3 Global economic contributions
Explaining the remarkable growth
of the overseas Chinese economy:
• (1) the thriftiness and hard-working nature of
the overseas Chinese;
• (2) an elite group of intellectuals;
• (3) a positive role of overseas Chinese
organizations; and
• (4) closer socioeconomic ties with mainland
China.
Case study 9
Location, size and political economy
of Chinese dynastic cycles
Song
(AD 960-1279)
Chosen
(AD 1392-1910)
(AD 1279-1368)
Tang
(AD 618-907)
Koryo
(AD 915-1391)
Yuan
Unified Shilla
(AD 668-933)
Ming
Qing
(AD 1368-1644) (AD 1644-1911)
Figure 15.4 A comparison of the Chinese and Korean dynasties
700
Life span (years)
600
Zhou
500
400
300
Shang
Han
Xia
Song
Tang
Ming
Qing
200
Jin
100
Yuan
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Land area (million sq. km)
(a) Chinese dynasties: lifespan versus territorial size
Source: Tables 15.4 and 15.5 and the author’s calculation.
700
Life span (year)
600
Zhou
500
Shang
Han
400
Xia
Tang
300
Song
Ming
Qing
200
Jin
100
Yuan
0
0
1000
2000
3000
4000
Distance between capital and farthest frontier (km)
(b) Chinese dynasties: lifespan versus distance
Figure 15.5 Location, territorial size and Chinese dynasties
Source: Tables 15.4 and 15.5 and the author’s calculation.
5000
Table 15.4 A comparison of selected Chinese dynasties in terms of location, size and
other parameters
Indicator
Capital city
Zhou
(1046-221BC)
Hao
(Xi’an)a;
Luoyi
(Luoyang)b
Distance between
capital and farthest 1200a; 950b
frontier (km)k
Area of territory
(million km2)l
3.4
Length of existence
825 (571)m
(years)
Major force(s) for
collapse
Han
(206BC-AD220)
Jin
(265--420)
Tang
(619-907)
Chang’an
(Xi’an)c;
Luoyangd
Luoyange;
Kaifengg;
Chang’an
Nanjingi;
Jiankang
Lin’an
j Beijing
(Xi’an)
Beijing
(Nanjing)f
(Hangzhou)h
3200c;
3300d
3500e;
2000f
3500
8.9
9.2e; 2.3f
12.5--8.0
426
155
289
Exogenous
Endogenous Endogenous
&
Endogenous
Endogenous
Song
(960--1279)
Ming
Qing
(1368-- (1644-1644)
1911)
2000i;
2600j
3900
4.6g; 4.0h
7.1
13.1
319
276
267
2000g;
1700h
Exogenous
Endogenous & EndoExogenous
genous
Notes: (a): from 1046 to 771 BC. (b): from 771 to 221 BC. (c): from 206 BC to AD 25. (d): from
AD 25 to 220. (e): from 265 to 316. (f): from 317 to 420. (g): from AD 960 to 1127. (h): from AD
1127 to 1279. (i): from AD 1368 to 1420. (j): from AD 1421 to 1644. (k): estimated by the author
based on the maps of ancient China. (l): available at
http://bbs.zanba.com/message/122377/122377304.html. (m): figure within parenthesis does not
include the “Warring States” period (from 475 to 221 BC).
Source: Calculated by the author except those that are specifically cited.
Table 15.5 A comparison of China’s three short-lived dynasties and their predecessors
Qin
Sui
Yuan
Indicator
(221 – 206
(AD 581 –
(1279 – 1368)
BC)
618)
Xian’yang
Chang’ana;
Dadu
Capital city
(near Xi’an)
Luoyangb
(Beijing)
Length of lifespan (years), which is
15
37
89
Less than that of its predecessor by
810 (556)c
118
230
Distance between capital and farthest
2000
3200a; 3100b
4000
d
frontier (km) , which is
Longer than that of its predecessor
800e; 1050f
-300a; 1100b 2000g; 2300h
(km) by
Area of territory (million sq. km)i,
3.6
8.4
16.8
which is
Larger than that of its predecessor
0.2
-0.8a; 6.1b
12.2g; 12.8h
(million sq. km) by
Major force for collapse
Endogenous
Endogenous
Endogenous
Exogenous &
Compared to that of its predecessor
Endogenous
Exogenous
Endogenous
Notes: (a): from AD 581 to 605. (b): from AD 606 to 618. (c): figure within the parenthesis is
based on that the Zhou dynasty does not include the “Warring States” period (from 475 to 221
BC). (d): estimated by the author based on relevant maps of ancient China. (e): based on the
Western Zhou dynasty (1046 to 771 BC). (f): based on the Eastern Zhou dynasty (771 to 221 BC).
(g): based on the North Song dynasty (AD 960 to 1127). (h): based on the South Song dynasty
(AD 1127 to 1279). (i): available at://bbs.zanba.com/message/122377/122377304.html.
Source: Calculated by the author based on Table 15.4 except those that are specifically cited.
Chapter conclusion:
Despite their common history and cultural
homogeneity, the greater China area has followed
during the past decades divergent political and
economic systems, from which different social and
economic performances have resulted. In this chapter,
the social and economic influences of Hong Kong,
Macau, Taiwan, and overseas Chinese, as well as their
influences on the economic development of mainland
China, are examined. Our focus is due to the great
potential of comparative advantages as well as the
close cultural linkages between Hong Kong, Macau,
Taiwan and mainland China. The remaining part of
this chapter analyzes the cross-Strait economic
relations and the overseas Chinese economics.
Suggested reading
Alesina, A. and E. Spolaore (1997). “On the Number and Size of
Nations,” The Quarterly Journal of Economics, Volume 112 (Nov.),
pp. 1027-56.
Alesina, A., E. Spolaore, and R. Wacziarg (2000). “Economic
integration and political disintegration,” American Economic Review,
Volume 90, pp. 1276–96.
Bolton, P., and E. Spolaore (1996). “ Economic Theories of Integration
and Break-up of Nations,” European Economic Review, Volume 81,
pp. 697-705.
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.
Gao, T. (2003). “Ethnic Chinese networks and international investment:
evidence from inward FDI in China,” Journal of Asian Economics,
Volume 14, pp. 611–629
Suggested reading
Goyal, S. and K. Staal (2003). “The political economy of regionalism,”
European Economic Review, Volume 48, pp. 563-93.
Harding, Harry (1993). "The Concept of 'Greater China': Themes,
Variations and Reservations," The China Quarterly, Volume 136
(Special Issue: Greater China), pp. 660-84.
Rauch, James E. and Vitor Trindade (2002). “Ethnic Chinese Networks
in International Trade,” Review of Economics and Statistics, Volume
84, Issue 1, 116-30.
Shambaugh, David (1993). "Introduction: The Emergence of 'Greater
China'," The China Quarterly, Volume 136 (Special Issue: Greater
China).
Smart, A. and J. Hsu (2004) “The Chinese Diaspora, Foreign
Investment and Economic Development in China,” The Review of
International Affairs, Volume 3, Issue 4, pp. 544 – 566
So, Alvin Y. (2011). “‘One Country, Two Systems’ and Hong KongChina National Re-unification: A Crisis-Transformation Perspective,”
Journal of Contemporary Asia, Volume 41, Issue 1, pp. 99-116.