Research Series on the Chinese Dream and China’s Development Path Yingqiu Liu Editor New Interpretations on the Development of China’s Non-Governmental Enterprises Research Series on the Chinese Dream ’ and China s Development Path ProjectDirector XieShouguang,President,SocialSciencesAcademicPress SeriesEditors LiYang,Vicepresident,ChineseAcademyofSocialSciences,Beijing,China LiPeilin,Vicepresident,ChineseAcademyofSocialSciences,Beijing,China AcademicAdvisors CaiFang,GaoPeiyong,LiLin,LiQiang,MaHuaide,PanJiahua,PeiChanghong, QiYe,WangLei,WangMing,ZhangYuyan,ZhengYongnian,ZhouHong Drawingonalargebodyofempiricalstudiesdoneoverthelasttwodecades, this Series provides its readers with in-depth analyses of the past and present and forecasts for the future course of China’s development. It contains the latest research results made by members of the Chinese Academy of Social Sciences. Thisseriesisaninvaluablecompaniontoeveryresearcherwhoistryingtogaina deeper understanding of the development model, path and experience unique to China. Thanks to the adoption of Socialism with Chinese characteristics, and the implementation of comprehensive reform and opening-up, China has made tremendousachievementsinareassuchaspoliticalreform,economicdevelopment, and social construction, and is making great strides towards the realization of the Chinesedreamofnationalrejuvenation.Inadditiontopresentingadetailedaccount of many of these achievements, the authors also discuss what lessons other countriescanlearnfromChina’sexperience. Moreinformationaboutthisseriesathttp://www.springer.com/series/13571 Yingqiu Liu Editor New Interpretations on the Development ’ of China s Non-Governmental Enterprises Editor YingqiuLiu CenterforPrivateEconomicStudies ChineseAcademyofSocialSciences Beijing,China Translated byCHEN Fuyu,CAO Shunfa; Sponsored bytheChineseFundFor theHumanities and Social Sciences ISSN2363-6866 ISSN2363-6874 (electronic) ResearchSeriesontheChineseDreamandChina’sDevelopmentPath ISBN978-981-10-3870-9 ISBN978-981-10-3872-3 (eBook) DOI10.1007/978-981-10-3872-3 LibraryofCongressControlNumber:2017940485 ©SocialSciencesAcademicPressandSpringerNatureSingaporePteLtd.2017 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilarmethodologynowknownorhereafterdeveloped. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthis book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained hereinor for anyerrors oromissionsthat may havebeenmade. Thepublisher remainsneutralwith regardtojurisdictionalclaimsinpublishedmapsandinstitutionalaffiliations. Printedonacid-freepaper ThisSpringerimprintispublishedbySpringerNature TheregisteredcompanyisSpringerNatureSingaporePteLtd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore (cid:129) KeyResearchProjectofChineseAcademyofSocialSciences,2009 (cid:129) ProgramofNationalSocialScienceFundofChina,2009 v Authors (Inorderoftaskundertaken) LiuYingqiu,ZhangJun,LiuXiahui,LiMengjuan,JuJinwen,Lu€ Fengyong, XueBai,XuHaoqing,ZhaoLei,LiuJianxiong,ZhuXiongbing,WuYanbing, Wang Hongling, Gu Qiang, Dong Ruiqing, Zhao Sanying, Zhang Liang, XiaXianliang vii Abstract Followingtheshadowoftheinternationalfinancialcrisisanditsindelibleimpacton China’snon-governmentalenterprises(NGEs),thisbookinvestigatesandanalyzes theproblemsinandchallengestoNGEs’developmentinthenewstageofChina’s economicandsocialdevelopment,followingitsentryintotheWTO.Itelaborates on and demonstrates the necessity, urgency, and inevitability of China’s NGEs to vigorouslypromotetheirorganizational,technological,andmanagerialinnovation atthepresentstage,andsuggestssomestrategicoptionsforfurtherdevelopment. This book consists of twelve chapters. Chapter 1 reveals and analyzes the new challenges, choices, and countermeasures available for the new development of China’s NGEs. Based on the effect principles, Chap. 2 describes the dynamic process of NGEs’ development and, using human resource management models, illustratesthepositiveroletheyplayinChina’seconomicgrowth.Chapter3reveals thatChina’sNGEsarestillconcentratedinlow-endindustriesandfields,andpoints outthat,intheprocessofindustrialtransformationandupgrading,NGEsshouldnot blindly discard traditional industries, but should instead focus on integrated inno- vation and innovative development in order to push forward the integration of industrialchainsandregionalindustrialtransfer.Throughanempiricalanalysisof thebarrierstoNGEs’entryintomonopolizedindustries,Chap.4explorestheorigin of monopoly barriers and proposes feasible measures for better and more rapid developmentofChina’snationaleconomy.Chapter5isanin-depthanalysisofthe governance structure and mechanisms of China’s NGEs as well as the problems therein.Chapter6teasesoutthenewcharacteristicsandtrendsofNGEs’expansion and improvements to their efficiency, analyzes the relationship between scale, efficiency, and growth, and lays out several reasonable paths for NGEs’ growth and development. Chapter 7 focuses on the labor-capital distributive relationship anditsdevelopmentwithinChina’sNGEsandtestsitempiricallybyusingtheC-D production function. Chapter 8 studies the arrival of the Lewis Turning Point, the disappearing advantage of cheap labor, and new changes in labor supply and demandasChinaentersanewstageofeconomictransformation,whileempirically concluding that only by increasing their competitiveness can NGEs obtain ix x Abstract sustainableandsounddevelopment.Chapter9startswiththestatusandefficiency of NGEs’ technological innovation and illuminates the paths to and realization of potentialtechnologicalinnovations.AgainstthebackgroundofSMEs’(small-and medium-sizedenterprises’)financingdifficulties,Chap.10exploresandexpounds upon the special significance ofdeveloping micro finance institutions with aneye towardsthelong-term,sustainable,andhealthydevelopmentofChina’seconomy. BasedonNGEs’developmentinhigh-techindustries,Chap.11revealsthedriving role high-tech industries play in the development of China’s NGEs by using the CoordinationDegreeModelandaquantitativeanalysisofridgeregression.Finally, Chap. 12, while stressing the fact that China’s NGEs are entering a new stage of transnationaldevelopment,centersaroundtheinternationalizationoftheRMBand focuses on the new environments, problems, and challenges facing NGEs’ trans- national operation from the perspective of global economic adjustment and rebalancinginthepost-crisisera. Series Preface SinceChina’sreformandopeningbeganin1978,thecountryhascomealongway on the path of socialism with Chinese characteristics, under the leadership of the CommunistPartyofChina.Over30yearsofreformeffortsandsustainedspectac- ulareconomicgrowthhaveturnedChinaintotheworld’ssecondlargesteconomy, and wrought many profound changes in the Chinese society. These historically significant developments have been garnering increasing attention from scholars, governments,andthegeneralpublicalikearoundtheworldsincethe1990s,when thenewestwaveofChinastudiesbegantogathersteam.Someofthehottesttopics haveincludedtheso-calledChina miracle,Chinese phenomenon,Chineseexperi- ence, Chinese path, and the Chinese model. Homegrown researchers have soon followed suit. Already hugely productive, this vibrant field is putting out a large number of books each year, with Social Sciences Academic Press alone having publishedhundredsoftitlesonawiderangeofsubjects. Because most of these books have been written and published in Chinese, however, readership has been limited outside China—even among many who study China—for whom English is still the lingua franca. This language barrier hasbeenanimpedimenttoeffortsbyacademia,businesscommunities,andpolicy- makersinothercountriestoformathoroughunderstandingofcontemporaryChina, ofwhatisdistinctaboutChina’spastandpresentmaymeannotonlyforherfuture butalsoforthefutureoftheworld.Theneedtoremovesuchanimpedimentisboth real and urgent, and the Research Series on the Chinese Dream and China’s DevelopmentPathismyanswertothecall. This series features some of the most notable achievements from the last 20yearsbyscholarsinChinainavarietyofresearchtopicsrelatedtoreformand opening. They include both theoretical explorations and empirical studies, and covereconomy,society,politics,law,culture,andecology,thesixareasinwhich reform and opening policies have had the deepest impact and farthest-reaching consequences for the country. Authors for the series have also tried to articulate their visions of the “Chinese dream” and how the country can realize it in these fieldsandbeyond. xi