China's reformers insisted over two decades ago that the iron rice bowl, symbol of the Communist Party's compact to provide cradle-to-the-grave security for all, had to be broken if China was going to modernize. China's leaders knew they had to risk their careers and the Party's future, yet the reforms they initiated have not gone far enough. The iron rice bowl is still unbroken. China's Economic Challenge reveals how transition from a planned economy to a market-oriented one has been fraught with contradiction, dilemma and difficult choices. Membership in the World Trade Organization poses the greatest challenge yet, because while Party leaders are gambling that more new jobs will be created than old ones are lost, most state enterprises are not ready for international competition. Author Neil Hughes captures the complexity of China's economic revolution, involving wide-open competition, traditional networks exploiting new opportunities, civil servants "privatizing" state...

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