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Yasheng Huang on the Development of the Chinese State
Conversations with Tyler
The Chinese State in the 19th Century
China had a much smaller state in terms of the physical capacity as compared with Europe during that comparable period of time. Today, if you look at the tax revenue relative to GDP, even China today is not an excessively high ratio. So I would argue that Chinese state in the 19th century did not derive all its power from taxation. But say when China needs to fight Britain in the Opium Wars, or come the 1920s, is that lack of fiscal capacity what's holding back China?
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