ABSTRACT
This chapter identifies the determinants of the changing centre/provinces paradigm, and assesses their significance for the emerging political and economic system in China. It argues that the growth in both centre/provinces and interprovincial conflict was partly an inevitable consequence of the reformulation of China’s development strategy. The relationship between the central authorities and the provinces is a complex one determined by the interaction of a number of variables. A quantum leap to a totally new political and economic system was out of the question, and change has thus proceeded in several small steps. The problems associated with this lack of elite consensus were compounded by the second important feature, concerning the way in which policy changes in individual areas were concluded. Specific decentralization policies and the move towards the market have combined to diffuse decision-making power to a much greater extent than at any time since 1949.
