ABSTRACT
More people are beginning to discuss whether China’s economic growth brings new externalities to the world political balance. China completed a transformation to a state-led developmental model of party/governmental capitalism by means of two policies that fully utilized the special characteristics of capital in East Asia. The central government set up local taxation bureaus for national taxation, and changed the system by which local governments remitted taxes to the center. The tax system also forced local governments to seek sources of revenue, and led local governments everywhere to ally with commercial forces and develop so-called ‘local state corporatism’. China’s ultimate goal of the united front in tourist operations was to create Taiwanese economic dependence, such that in the short term it could serve as economic leverage to exert political influence, and in the long term could achieve actual economic unification between China and Taiwan.
