China S Industrial Policy Transformation Theory And Practice

The debate on industrial policy has been in full swing among the academic circles in recent years. The crux of this debate is not whether China needs industrial policies, but rather, the kind of industrial policies it wants. Given the profound changes to the domestic and international environments, and institutional background during China's industrial development, industrial policies must be able to make up for 'market failures,' while avoiding 'government failures'. To this end, it is suggested to establish a 'market-friendly' industrial policy system dominated by functional industrial policies, in accordance with the requirements of building an 'interactive and cooperative' government-market relationship to help transform and upgrade China's industries.

This book examines suitable approaches to and makes policy suggestions on China’s industrial upgrading according to the requirements of the transformation of economic growth. It is divided into two major parts, the first of which provides an in-depth analysis of the impact that transforming economic growth will have on industrial development, particular regarding export policy adjustments, the rise of labor wages, and the development of a low-carbon economy, offering valuable insights into the difficulties entailed by the transformation process. In turn, Part II discusses the paths chosen for China’s industrial upgrading, examines its past failures and current orientation, and puts forward corresponding policy suggestions for the future.

In the past three decades, China has successfully transformed itself from an extremely poor economy to the world’s second largest economy. The country’s phenomenal economic growth has been sustained primarily by its rapid and continuous industrialisation. Currently industry accounts for nearly two-fifth of China’s gross domestic product, and since 2009 China has been the world’s largest exporter of manufactured products. This book explores the question of how far this industrial growth has been the product of government policies. It discusses how government policies and their priorities have developed and evolved, examines how industrial policies are linked to policies in other areas, such as trade, technology and regional development, and assesses how new policy initiatives are encouraging China’s increasing success in new technology-intensive industries. It also demonstrates how China’s industrial policies are linked to development of industrial clusters and regions.

In recent years, the 'supply-side structural reform' has become a popular term in all regions and fields in China. The supply-side structural reform is the key component of the Chinese government's economic policy framework during the '13th Five-Year Plan' period. It is crucial in both theory and practice, to have an accurate understanding of its background, content, essential features, principles, and goals.The theme of the book revolves around the supply-side structural reform and analyses the concept from different perspectives, such as the basic theories and institutional framework, the fiscal taxation system, the financial system reform, and the innovation system. It attempts to address questions such as: how to understand the supply side and the demand side; why the supply-side structural reform is currently proposed; how to implement the reform; what are the changes brought about by the reform; what factors should be taken into consideration in its implementation; what are the policies to be developed in the process, etc.

As China has blended market reforms with comprehensive industrial policies, most research has focused on the national government's strategies for economic growth. However, one of the unique characteristics of industrial policy in China is that it involves government intervention at all levels, from the political elite all the way down to village leaders. This book focuses on the domestic appliance industry, and China's three major business groups in this area - Haier, Hisense and Aucma. The Haier Group, in particular, is one of the most successful and competitive enterprises in China and is very well-placed to compete globally as the Chinese economy becomes more integrated with the world trading system. This volume shows how industrial policy is formulated at the national level and implemented at the local level, and examines how local government frequently intervenes in local enterprises' business strategy and management. Of practical importance, this book provides academics, business people and policy makers with valuable insights into the development process and a concrete understanding of the challenges faced in the global business revolution by one of the world's most dynamic economies.

This book analyses the industrial reform measures taken by the Chinese government during the decade 1985-95 and identifies the economic and political tensions and contradictions that state enterprise reform has presented to a leadership intent on maintaining its authoritative political position. Using government sources and interviews with economists and workers at one of China's largest state-owned enterprises (The Second Automobile/Dongfeng corporation ), Hannan concludes that the relationship between state policy and enterprise is a complex two-way process characterised by tensions resulting from conflicting priorities.

This book is about the political economy of China’s industrial reform and the rise of a group of Chinese big businesses under the Communist Party and the central state’s control. It examines the origins, evolution and institutional configuration of this centralized system in governing the ‘commanding heights’ of the Chinese industrial economy. Shaped by persistent industrial policies to develop China’s ‘national champions’ enterprises, the core parts of China’s central industrial ministries and mono-bank system have been transformed into a ‘national team’ of giant modern business firms in industries such as oil, power generation, telecommunications, aerospace, aviation, nuclear, shipbuilding, mining, construction, automobile and banking. Through an adaptive process of learning, experimentation and restructuring, the bedrock of the authority relations and control mechanisms among the Party, government bureaucracy and firms has been consolidated rather than dismantled in the system’s transformation. This alternative view of China’s industrial reform presents a direct challenge to the neo-liberal transition model of China’s institutional development and the mainstream Western conceptions of Chinese big business.