Planning Like a State: Railway Modernization in China by Shu Liang (Karl) Yan A thesis submitted in conformity with the requirements for the degree of Doctor of Philosophy Department of Political Science University of Toronto © Copyright by Shu Liang (Karl) Yan 2020 Planning Like a State: Railway Modernization in China Shu Liang (Karl) Yan Doctor of Philosophy Political Science University of Toronto 2020 Abstract Railroads in China represent something special. As China enters the third decade of the 21st century, one of its hallmark achievements has been the remarkable modernization of its railway system. However, post-1949 sectoral modernization did not occur in a linear fashion. The Party-state failed to develop this critical sector, both during the 27 years of the Mao era (1949 to 1976) and the first 25 years of Deng’s reform and opening (1978 to 2002). China’s railway dream—sustained rapid development—only took off in the early 2000s. Against such a backdrop, my research questions are as follows: 1) Why did China’s railway dream only take off in the early 2000s, despite five decades of centralized Party rule? 2) What were the obstacles to sectoral modernization, and how were they finally overcome? 3) What political and economic factors, both internal and external, most decisively shaped the evolution of China’s railway system? 4) Finally, what do the distinctive patterns of railway development tell us about the broader political economy of industrial development in China? This dissertation argues that the practice of “concentrating powers to accomplish big things” was the principal reason for sustained rapid modernization, and China’s accession to the World Trade Organization provided the crucial catalyst. I define “power concentration” as an institutionalized and centralized means ii of shaping and supporting a particular approach to sectoral development to meet the broader developmental challenges of the time. Power concentration manifested as the alignment of a clear developmental approach, professionalized and institutionalized macro-economic planning agencies and strategic industrial policies with restrictive targets that focus on overall planning and top-level design. In the absence of such policy guidance and environment, railway development was meagre during the Mao era and early periods of reform and opening. iii Acknowledgements Giving birth to this project was a bittersweet process. I was fortunate to be surrounded by a group of people who helped me midwife this study and made this journey a pleasant one. It is truly a pleasure to express my sincere gratitude to them. My heartfelt thanks go to Louis Pauly and Victor Falkenheim for their excellent supervision. I first walked through the double doors of Sidney Smith Hall as a shy graduate student. Years of encouragement, inspiration, kindness and support from Lou and Vic shaped my academic life immeasurably. I will pass on Lou and Vic’s incisive criticism and emphasis on writing to my prospective students. And, for now, I am proud to be Vic’s last Ph.D. student, however abbreviated this moment may be. Gregory Chin, my committee member, has been a great mentor since my time at York University. Greg is a down-to-earth and generous person who has inspired my own research. Completing this project under their guidance was a luxurious experience, and they were an outstanding supervisory committee. My two reviewers, Joseph Wong and Jeremy Paltiel, provided positive and constructive appraisals, albeit under a tight schedule. My gratitude goes to Joe for his illuminating advice, which pushed me to think beyond railway development and what it means for China’s developmental path. It was fitting that Jeremy served as the external examiner. Indeed, since the autumn of 2015, Jeremy has prodded me to pursue this type of research and pushed me to digger deeper into the railway story. I am fortunate to receive their invaluable feedback. I am indebted to professors who have taught me and influenced my development as a scholar: Kenichi Ariga, Diana Fu, Antoinette Handley, Matt Hoffmann, Shiv Mukherjee, Lynette Ong, Rob Vipond and Lucan Way. I am also thankful that professors Harald Bathelt, Ed Schatz and David Wolfe have lent a helping hand during my search for an intellectual puzzle. I also want to thank Carolynn Branton and Louis Tentsos for their administrative support. I have benefitted immensely from my conversations with Shaun Breslin, Cheng Yongdong, Andrew Grant, Han Haoying, Lai Puqing, Sonny Lo, Tom Narins, William Norris and Margaret Pearson. I especially appreciate comments and suggestions from Cheng Zhongxing, iv Gao Xudong, Han Baoming, Jiang Zongbin, Ali Liao, Ma Guangsheng, Wu Qiang, Xu Houguang and Zhang Jianwei. In many ways, they helped shape the trajectory of my research and allowed me to grasp the complexity of railway modernization in China—that railroads are a set of interlocking relationships consisting of a myriad of actors. I will always cherish the friendship that I have built with many wonderful emerging scholars, such as Asif Farooq, Nick Fraser, Kevin Luo, Scott McKnight, Stephen Smith, Junyang Wang and Alvin Yang. Special thanks to Bowen Yu; his wisdom and intelligence were the perfect tonics for me when I was struggling to maintain my focus. I also learned many valuable lessons about teaching and writing from my long conversations with Binfan Wang, Yao Wen and Steven Yet. I hope we can continue to travel together on our journey as scholars. Fieldwork in China was challenging, and I certainly learned that from the hard way. But support from professors Cui Shunji, Lang Youxing, Shen Yongdong, Yu Hanzhi, Zhang Liwen, Zhou Yongheng, and, especially, Zhu Tianbiao helped provide the forward thrust during my time at Zhejiang University. I was privileged to have Gerry Gao, Tao Jin, Max Ma and Andrew Yu as close companions during my stay in Guangzhou. I remain impressed by Tao and Andrew’s erudition. Academics and industry leaders such as Michael Huang, Yoshitaka Ishii, Yasuhiro Matsuda, Tomoko Oishi, Torkel Patterson, Atsushi Sunami, Tang Liang, Xu Kai and Ryohei Yamada helped me navigate Japan. My gratitude also goes to Indonesian academics and politicians for their assistance during my stay in Jakarta: Tauhid Ahmad, Yose Damuri and Satya Yudha. Writing was a painful process, and the pain multiplied in the final year. I was fortunate to have my friends by my side. “Weekly Game Nights” with Stephanie Gui et al., Tang Shen, Junye Zhang and Hang Zhen were undoubtedly entertaining. Their exuberance and vivacity helped lift my mood. Members of our writing group certainly helped me stay disciplined. Many thanks to Xiaoling Gong, Shuiqing He, Aurora Li, Yin Yang and Shiying Zhu. I also thoroughly enjoyed many intermittent conversations with Hanlin Li, Arlene Min, Andy Xia, Paul Zhang, Zoe Zhao and Ning Zou. Several institutions funded my research and this dissertation. I am grateful to the Canada- China Scholars’ Exchange Program, Royal Bank Canada, Dr. David Chu Scholarship for Asia v Pacific Studies and the Department of Political Science and the School of Graduate Studies at the University of Toronto. I gratefully acknowledge the following institutions for their field support: Canada’s Missions to ASEAN and Indonesia, Centre for Strategic and International Studies (Indonesia), China Chamber of Commerce in Indonesia, China Railway Corporation, Global China Research Foundation, Guangzhou Railway Group, International High-Speed Rail Association, Japan External Trade Organization, Japan International Cooperation Agency and Kereta Cepat Indonesia China. I also want to thank my interviewees, who generously shared their insights and expertise. Finally, I am most grateful to my family—consisting of three generations of railway workers—for their support. My deepest gratitude goes to my parents, Yan Ming and Chen Huiguang, my uncles, Li Yongben and Guo Qiang, my aunt, Yan Qi, and my cousins, Sun Xiang and Li Yiyan. They’ve helped tremendously by explaining some of the jargon of the Chinese railway system and providing important field contacts. Special thanks to Jessica, who has always supported and “herded” me toward the finish line. I want to dedicate this work to them. In the end, I take great pride in my training as a “China scholar”—to pay attention to the granular details of the agency story and to strive toward conducting “solid” empirical research. I am also fortunate to be trained to “take a step back” and capture the bigger, moving picture. Lastly, all errors and omissions are mine and mine alone. Karl Yan Toronto, Canada August 28, 2020 vi Table of Contents ACKNOWLEDGEMENTS ...................................................................................................................................... IV LIST OF TABLES ................................................................................................................................................... X LIST OF FIGURES ................................................................................................................................................ XI LIST OF APPENDICES ......................................................................................................................................... XII CHAPTER 1 ......................................................................................................................................................... 1 THE PUZZLE .................................................................................................................................................................