Perspectives on Recent Economic Developments in China: A Symposium GARY H. JEFFERSON Since June 1989, industrial output in China has been virtually stagnant-a striking retreat from the annual growth rates of lo%-15% enjoyed by China during its first decade of reform. Coincidentally, the government has expanded allocation of raw materials to the state sector and imposed new controls on prices. Moreover, reports proliferate concerning the forcible closing of private and township-village enterprises, severe restrictions on the allocation of credit to these non-state sectors, and distribu- tions of government bonds to urban workers in lieu of cash wages. What has happened to the Chinese economy? Why is it that, once the flagship of socialist economic transition, China’s reform program now seems in disarray? In this symposium, our four contributing authors explore the origins of China’s recent economic difficulties and the turnabout in economic policy. Each of the contributors shares the view that these recent harsh economic policies respond to a set of economic problems that predate June 1989 namely, the acceleration of infla- tion and increasingly widespread corruption. Dwight Perkins cites the leadership debate during the year preceding Tiananmen that resulted in a loss of influence among those who favored pushing reform. Barry Naughton adds that “both the political crisis of June (1989) and the tough economic policies that preceded it were responses to the breakdown of the previous policy regime which had become mani- fest during 1988.” Calla Wiemer and Edward Ames also emphasize the roots of current economic policy in decisions preceding Tianamen, although their contribu- tions, at least implicitly, suggest the importance of underlying structural issues. Wiemer, in particular, stresses the tension between economic reform and economic interests (i.e. “distributional stability”) inherent in the reform program. While al- lowing that recent economic policy derives from pre-Tiananmen conditions, Ames factors in the recent experiences of East Europe and the Soviet Union and concludes Gary H. Jefferson * Brandeis University, Waltham. MA 02254-9110. Journal of Asian Economics, Vol. 1, No. 2, 1990, pp. 333-336. ISSN: 1049-0078 Copyright a 1990 by JAI Press, Inc. All rights of reproduction in any form reserved. 333