Abstract

The article examines the history of the searches for China’s industrialization strategy in the writings of Fang Xianting. The experience of studying the history of the industrial development of England and the influence of the German historical school became important components of his understanding of China’s economic prospects in the first half of the 20th century. The starting point for the study of Chinese economy was Bücher’s classification of types of industrial organization in their historical evolution. Analysis of data collected by Fang Xianting on the socio-economic characteristics of a number of industries (carpet industry, cotton industry) made it possible to identify the obstacles to industrialization. The scholar recommended focusing on the development of rural industry while avoiding following the Western model of concentration of large enterprises in the cities. Rural industry needed no large investments, resources and sophisticated equipment, it could use the labor of peasants and was not under the control of foreign powers. Although China’s rural industry suffered from reduction in sales to foreign markets during the global crisis, Fang Xianting hoped for its revival and transformation into a driving force for industrialization. In the development of small-scale decentralized production, he saw the possibility of counteracting foreign dumping, preserving the family as a production unit and maintaining social stability. The scholar recommended developing a system of rural cooperatives that can protect the economic interests of producers and increase the competitiveness of Chinese goods. It is concluded that Fang Xianting’s research has become an important part of the advancement of Chinese economists towards a deeper understanding of the prospects of China’s industrialization that take into account national specifics. His research method combined the collection of objective economic information with the study of political, social and legal institutions for the sake of identifying the impact of industrialization on Chinese society. Emphasis on the priority of rural industry reveals the historical origins of the economic strategy in the initial stage of Chinese reforms in the 1980s that was aimed at improving the living standards of peasants through the development of rural industries.

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