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CHAPTER ONE: DEFINITION AND SCOPE OF CHINESE ECONOMIC THEORY

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Chapter Summary

The basic principles of Chinese economics are the management of human activities and the adjustment of goods, and the study of national planning and the people's livelihood. The scope of Chinese economics is broader than that of Western economics. Chinese economic theories, whether Confucian or Legalistic, all base their discussion of the relation between men and things on the rational nature and wants of mankind. Thus the basis of Chinese economic theory is man's rational nature, not his wants. Chinese economic theory does not base itself on the individual or single unit. It is based on the study of mankind and society as a whole. This is quite different from the theories of all Western economists. In summary, it may be stated that the principles of Chinese economic theory are to study and administer the relations between men and goods and to enable man's rational nature to improve his livelihood.

Keywords: Chinese economic theory; Confucianist theory; legalist theory; man's rational nature; Western economics

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