ABSTRACT

In general, discussion of China’s economic reforms revolves around its huge absorption of foreign capital, fast growth of GDP and the daily proliferation of its ‘red’ supply chain. In the eyes of an ideal neo-classical economist, foreign investment has brought China technological advance, purchase orders and integration into the world division of labor with its position of comparative advantage—allowing Chinese industry to gradually sink its roots into solid economic growth in the global supply chain. It is assumed that fast growth of economic specialization and capacities will advance an internal social division of labor and pluralism, and from this extend to liberal democracy; so after the economic liberalization of China, democratic processes as familiar to Western countries would emerge. After all, Taiwan has performed as a shining example of modernization theory, a testament to political democratization following on acceptance of economic liberalization.