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China’s Developmental State in Transition: In Light of the East Asian Experiences

  • Wei Chen
  • Shu Keng
Chapter

Abstract

In the second half of 2016, a heated debate attracted widespread attention in China. Two eminent economists, Prof. Justin Yi-Fu Lin, former Chief Economist of the World Bank, and Prof. Wei-Ying Zhang, former Dean of the Guanghua School of Management, Peking University, thoroughly debated the effectiveness of industrial policy (reports). Putting this debate in a larger context, it originates from the growing concerns with China’s development strategy. Looking back, China’s economic success has greatly benefited from its heavy state intervention. But looking forward, China is likely to be caught in the “middle-income trap,” given the slowdown in growth rates and draining in production factors in recent years. So, shall China stick to its old state-led development strategy (Lin’s suggestion) or shift to the market-enhancing approach (Zhang’s point)?

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Wei Chen
    • 1
  • Shu Keng
    • 2
  1. 1.Institute of Social Work and Social PolicyEast China University of Science and TechnologyShanghaiChina
  2. 2.School of Public AffairsZhejiang UniversityHangzhouChina

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