China: Converging to What?

Rather than looking at the entire East Asian region, this article studies one of its major economies--that of China--and questions where it is heading. After outlining the history of the Chinese economy over the past two decades, during which it moved toward an increasingly market-based economy, Perkins contends that the Chinese system is still not close enough to the Anglo-American model to comply with international standards as exemplified by the World Trade Organisation (WTO) or the International Monetary Fund (IMF). China is instead closer to the South Korean and Japanese models, where the state plays a greater role in the economy. Yet even this similarity is limited, making China's economy unique among all others in the current international order. While China must continue to move toward an economy in accordance with international norms, the current situation requires an international organisation that will recognise China's advances rather than demand immediate compliance.