Course Code


Course Name

Chinese Business and Economy


Monday 6:30-9:15pm


WMY 402


Patrick Pak Cheung CHAN

Teaching Assistant

WEN Mingrui

Course Description

The aim of this course is to offer a broad coverage of key issues in economy and business in contemporary China. It would be particularly appropriate for students who have not studied economic issues in any depth before.

The 1978 reform of China has produced a fastest growing economy in the world with an astonishing GDP growth rate annually. Since 2004, China has become the second largest economy of the world after USA. In addition, it carries the world’s largest foreign currency reserves.

Students will acquire a comprehensive understanding of Chinese business and economy in the light of its recent successes and the challenges that China may face in sustaining rapid economic growth. Understanding Chinese business and economic development requires a basic appreciation of her past. This course draws on research in history, foreign trades, and political, economic, socio-cultural, technological (PEST) perspectives.

Students are required to apply fundamental economic principles to illustrate a series of plausible of causes and effects brought about the advances of ‘China Inc.’ in relation to her impacts to the world economy and globalization. Finally, an emphasis is placed on encouraging students to adopt a common-sense approach in examining contentious issues about China’s ideology and technological development.

Course Outline

Detailed Course Outline is available on Blackboard.

Week 1: Introduction to the Chinese business and economy

Week 2: Economic development of China in perspective

Week 3: China’s rise and fall (pre-1949): The Needham puzzle

Week 4: Failure of Socialist revolution and the factor endowment structure

Week 5: China and the world economy – International trade and foreign direct investment

Week 6: Revision and Mid-term examination

Week 7: National strategy on economic growth – Comparative Advantages Defying (CAD) v Comparative Advantages Following (CAF) 

Week 8: Looking to the future: China’s fundamental institutions and reform

Week 9: “State Capitalism” and the reform of Chinese financial system

Week 10: Urban Economy: Ownership and corporate governance (CG)

Week 11: Urban Economy: Technology and industrial policy

Week 12: Sustainability and knowledge-based economy

Week 13: Macroeconomic Policy: Instruments and outcomes

Assessment & Assignments

Research Report (20%)

Mid-term exam (30%)

Final term paper (40%)

Class participation and attendance (10%)

Honesty in Academic Work

Attention is drawn to University policy and regulations on honesty in academic work, and to the disciplinary guidelines and procedures applicable to breaches of such policy and regulations. Details may be found at

With each assignment, students will be required to submit a signed declaration that they are aware of these policies, regulations, guidelines and procedures.

  • In the case of group projects, all members of the group should be asked to sign the declaration, each of whom is responsible and liable to disciplinary actions, irrespective of whether he/she has signed the declaration and whether he/she has contributed, directly or indirectly, to the problematic contents.
  • For assignments in the form of a computer-generated document that is principally text-based and submitted via VeriGuide, the statement, in the form of a receipt, will be issued by the system upon students’ uploading of the soft copy of the assignment.

Assignments without the properly signed declaration will not be graded by teachers.

Only the final version of the assignment should be submitted via VeriGuide.

The submission of a piece of work, or a part of a piece of work, for more than one purpose (e.g. to satisfy the requirements in two different courses) without declaration to this effect shall be regarded as having committed undeclared multiple submissions. It is common and acceptable to reuse a turn of phrase or a sentence or two from one’s own work; but wholesale reuse is problematic. In any case, agreement from the course teacher(s) concerned should be obtained prior to the submission of the piece of work.