By Taciana Fisac, Leila FernA?ndez-Stembridge

Because the Nineteen Eighties, China has longed for a huge position at the overseas monetary scene and has hence attempted to advertise a picture of modernization. Having elevated its efforts in the direction of foreign integration, family reform keeps to provide China with certainly one of its maximum demanding situations. This quantity analyses numerous very important elements of modern day China: fiscal adjustments, the hunt for a social compact in city China, the id of latest social conflicts that coexist within the dialectics of keep watch over and unity and the matter of state development and collective identities.

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27 Source: State Statistical Bureau (various years). 0 Source: MOFTEC internal documents, 1998. 0 80 Source: Tariff Adjustment Table in 1997, State Customs, Beijing, 1998. imports. By the end of 1996, China achieved its renminbi (Rmb) convertibility on the current account. China also benefits a great deal from foreign investment, especially foreign direct investment (FDI). 3). It has become the largest recipient developing country of foreign investment since 1993. 30 Source: State Statistical Bureau (1998).

But again, it is very difficult for us to judge how far this process has proceeded. The specific uncertainties about remaining links to work units and the degree of competition with rural migrants provide an indication of our uncertainty about the ultimate form of the urban society – and urban social 24 S TAT E E N T E R P R I S E R E S T RU C T U R I N G compact – that is emerging in China. It is clear that urban residents are losing security but gaining opportunity. For some, this trade-off leaves them clearly worse off.

Clearly, these changes are disadvantaging millions of urban workers. Dissatisfied groups include the unemployed, the laid-off, pensioners seeing their benefits eroded or not getting paid at all, and production workers seeing their relative income standing fall, and perhaps their absolute real incomes as well. One particularly poignant example of a group losing ground is the demographic group which came of age during the Cultural Revolution. Born during the first part of the 1950s, this group had its education interrupted by the Cultural Revolution, and many members of the group were sent to the countryside between 1969 and 1975.

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