In a relatively short period, the growth of investment to China and the resulting increase in Chinese trade has resulted in a reconfiguration of the East Asian regional economy, and is now altering financial and resource flows across the globe. This book explains how this transformation has come about, focusing on the interplay between domestic politics in China and the transition from socialism on one hand, and the ongoing evolution of global or transnational production networks on the other. It shows that while events in China have considerable global significance, this importance does not necessarily equate with the "power" that some already ascribe to China. Whilst recognizing that global economic integration has contributed to the reduction of poverty, it also shows how it has contributed to the emergence of new social cleavages and the changing basis of communist party rule.

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