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Yang examined the influence of external factors on each institution, such as the influence of Westernization and Communism on family, and the impact of industrialization on rural markets. He also analyzed the impact of public opinion and past culture on institutions, therein revealing the circular nature of diffusion.

Despite the common perception that China had no religion, he uncovers the influence of classical Confucianism as the basis for many ethical value systems, and follows its diffusion into state and kinship systems, as well as Taoism and Buddhism. Writing in the early years of Communism, Yang had little hard data with which to test his theories.

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Social change in contemporary China : C. Yang and the concept of institutional diffusion. Wenfang Tang , Burkart Holzner.