Course title #1
Credits 4
China’s Economic Development and SINO-US Economic Relations
Catalog Description (a brief description of the intent of the course, similar to descriptions
found in university catalogs; may indicate special teaching techniques):
China includes one- fifth of the world population (four times the U.S. population) and
its economy is one of the fastest growing and largest in the world, with effects far
beyond China’s borders. Understanding Chinese economic development is therefore
of critical importance. This course covers a number of aspects of the Chinese
economy and supplies students with systematic knowledge about the economic
rationale for development, reform and operation of the contemporary Chinese
economy. Through this course PSU students will have the opportunity to acknowledge
and understand the dynamic process, implications and economic rationales of the
fast-growing, second-largest economy in the world. The course will also contribute to
understanding about the importance and potential benefits of economic cooperation
between USA and China.
Objectives (a list of the course objectives and what the student may expect to know or
achieve by taking the course. Instructional procedures may be indicated in this section):
On successfully completing this course, students will be able to understand and analyze
the basic economic factors that affect the Chinese economy and hence comprehend the
operational mechanisms of China’s economic development. It enables students to
appreciate the close economic and trade relationship between China and USA. Students
will be able to independently investigate topics related to the Chinese economy,
communicate the results, and articulate their own thoughts in a brief presentation to a small
group of people.
Instructional Format (a brief description of how the class will be conducted):
This subject will be taught in both lecture and seminar formats. Students are required to do
projects on topics chosen or assigned, to present their mid-session and final papers, and
to participate actively in discussions in the class, do library reading of relevant reference
materials, including internet research. Office hour discussions with students will also be
important.
Total Contact Hours (normally 10 contact hours [a contact hour is 50 minutes] are
required for each credit offered, e.g., a 4-credit course requires approximately 40 contact
hours): 40 contact hours.
Method of evaluation (criteria and/or products for granting credit and assigning grades;
how the activities measure whether the student has met the objectives you have listed. If
the course carries both upper division undergraduate credit and graduate credit, (i.e., a
400 level/500 level course), note additional requirements for graduate credit.)
Précis: One 1-page interpretative précis of a non-required text chosen by the student,
showing her/his expectations for this course, (10%);
Mid-session paper (3 pages) and group presentation (5-10 minutes) in class, 40%;
Final paper (4 pages) and presentation (5-10 minutes) in class 40%;
active class participation, 10%
Graduate students will be held to a higher standard for all the required papers. Graduate
student mid-session and final papers must each be two pages longer. Further, while
undergraduate student papers will focus primarily on summarization, graduate students
must show clear evidence of analysis and critique.
Classroom Expectations:
Do not hesitate to ask questions!!!
texting, browsing, chatting, etc)
The précis and two presentations encourage students to critically absorb research
literature as well as to speak in front of a group of people and respond to comments and
questions. The two papers allow students to practice independent investigation of a
specific topic.
Prerequisites (such as previous coursework, consent of instructor, or other requirements
that the student should have to be admitted to the class. Prerequisites are generally
required for 300 level courses or above):
EC 201 Principles of Economics-Micro
EC 202 Principles of Economics-Macro
Intended audience (description of who will take this course):
Undergraduate and graduate economics majors and other PSU students with required
background (total cap 40 students)
Required text(s) (A required reading list falls in this category. Instructors are
responsible for meeting summer book ordering deadlines through the PSU
Bookstore or other vendors): Bibliography (a prepared bibliography should be attached,
if available. This should include references you have used to design the course.
Include author, title, publisher, and copyright date):
(1) Barry Naughton. The Chinese Economy: Transitions and Growth. MIT Press, 2007.
(2) China's Economic Transformation by Gregory C. Chow (Paperback - Feb 13, 2007)
(3) The U.S.-China Trade and Economic Relationship by U.S.-China Economic and Security
Review Commission (Sep 2, 2011) ; 2010:
http://books.google.com.hk/books?id=qU4uE-A1pUAC&pg=PA175&dq=The+U.S.-China+
Trade+and+Economic+Relationship+by+U.S.-China+Economic+and+Security+Review+
Commission&hl=zh-CN&sa=X&ei=L0L0T9rIAo-kiAfs_-mDBw&ved=0CEEQ6AEwAg#v=on
epage&q&f=true
(4) China 2030: Building a Modern, Harmonious, and Creative High-Income Society
February 27, 2012, http://www.worldbank.org/en/country/china
http://www.worldbank.org/en/news/2012/02/27/china-2030-executive-summary
(5) China's Remarkable Economic Growth by John Knight and Sai Ding (May 16, 2012)
http://books.google.com.hk/books?id=UsldmE8B1_cC&printsec=frontcover&dq=China's+
Remarkable+Economic+Growth+by+John+Knight+and+Sai+Ding&hl=zh-CN&sa=X&ei=
PkP0T5WUJeipiAffqfTrBg&ved=0CDcQ6AEwAA#v=onepage&q=China's%20Remarkable
%20Economic%20Growth%20by%20John%20Knight%20and%20Sai%20Ding&f=false
(6) Interpreting China's Economy by Gregory C. Chow (Jul 12, 2010)
http://books.google.com.hk/books?id=5i7c6r3lXV4C&printsec=frontcover&dq=Interpreti
ng+China's+Economy+by+Gregory+C.+Chow&hl=zh-CN&sa=X&ei=v0P0T5j_LYmiiAeP9XOBg&ved=0CDoQ6AEwAA#v=onepage&q&f=false
(7) Justin Yifu Lin, Fang Cai, and Zhou Li. The China Miracle: Development Strategy and
Economic Reform (Revised), Hong Kong: Chinese University Press, 2003 (English
edition).
(8) Chinese Economic Performance in the Long Run, 960-2030 AD, Second Edition.
http://browse.oecdbookshop.org/oecd/pdfs/browseit/4107091E.PDF
(9) THE PEOPLE'S REPUBLIC OF CHINA NATIONAL REPORT ON
SUSTAINABLE DEVELOPMENT, NDRC, 2012
http://www.ndrc.gov.cn/xwzx/xwtt/t20120601_483687.htm
Content outline and/or syllabus (an outline of the major topics to be covered in the
course and/or a complete course syllabus -- attach if necessary):
WEEK 1:
Introduction to the course (2 hours)
Economic history: (2 hours)
Given China’s technical superiority over the West at times in the past, why did China fall
behind and not industrialize earlier?
The Economic Development under central planning and the Reform and Opening up
policy (2 hours)
Forced industrialization and Soviet-style central planning; de-collectivisation of agriculture
and the reform of state-owned enterprises; the reform of public finance and banking
system; the price reform and the development of commodity and factor markets; the reform
of the external sector, shift of policy regimes from import-substitution to export-orientation.
Population, natural resources and the environment: (2 hours)
Population explosion, resources shortages, environmental pollution and ecological
degradation, the sustainable development strategy, and scientific development outlook,
energy saving and emission reduction, restructuring and transition to a new development
style
WEEK 2:
Economic transition: (2 hours)
China has undergone (and is still undergoing) a process of economic transition from a
centrally-planned to a mixed market-oriented economy. The transition process and its
contribution to economic growth, government involvement in the economy, and their
implications
Economic development: (2 hours)
Economic transition is accompanied by a rapid process of economic development—how
does it proceed in China, and how does China’s experience relate to traditional concepts of
development economics?
Sectoral development and total factor efficiency: (4 hours)
Infrastructure(energy, utility, road, railway, airlines, waterways, communication),
agriculture, industries(traditional and modern manufacturing, real estate and construction),
and tourism
Mid-session paper and group presentation (2 hours)
WEEK 3:
Economic geography: (2 hours)
What are the underlying geographic realities of China’s economy? Rural and urban
development disparity, regional imbalance and coordinated development
Microeconomic Issues: (2 hours)
The micro foundation of macroeconomic issues in China: planning versus market
mechanism of resource allocation; market intervention and price determination; labor and
capital market distortion; households’, firms’ and government’s behaviors.
Macroeconomic Issues: (2 hours)
The making and operation of monetary and fiscal policies, public finance and monetary
systems, as well as foreign trade and exchange policies. Issues on measuring GDP and
inflation, long-term economic growth, consumption, savings and investment, employment
will also be covered.
Politics and culture: (2 hours)
China’s political institutions differ from those of the West, and so do many cultural and
political values—what is their economic relevance?
WEEK 4:
Impact of China’s economic growth worldwide: (4 hours)
The economic rise of China has implications for economies (and people) around the world,
through channels ranging from foreign trade and investment to migration and
environmental issues.
Sino-USA economic interconnectedness: (2 hours)
Regional and sectoral Trade and investment between China and USA, business in China,
and Portland in China
Final paper and presentation (2 hours)