The Rise of China's Industrial Policy, 1978 to 2020

Can China's remarkable, rapid emergence as a large economy and technological power be attributed to specific policies, and more generally to a Chinese program of industrial policy? More simply put: What is it that China has done right? This is the fundamental question that Barry Naughton addresses in his extended essay. Disentangling the threads of China's industrial policies since 1978, Naughton argues that a distinctive, "government-steered market economy," a term articulated by the country's policymakers, is indeed taking shape and warrants serious consideration as a new type of economic system—one that has ramifications far beyond China's borders.. Cover CONTENTS FOREWORD 1. Introduction: What is Industrial Policy? What is China’s Industrial Policy? 1.1. Setting Aside Three Misconceptions 1.1.1. China is NOT Just Another East Asian Developmental State 1.1.2. There is NO Definable “Chinese Road” 1.1.3. Conflict Among Technological Powers is NOT Inevitable 1.2. Defining Industrial Policy 1.3. The Impact of Industrial Policy 1.4. What is not Industrial Policy? 1.5. Plan of the Essay 2. Bringing the Economy to Life: Growth without Industrial Policy 2.1. A Series of Failed Plans 2.1.1. The Planning Failure that Began the Reform Era 2.1.2. Subsequent Failed Plans 2.1.3. Discussion 2.2. Alternative Approaches 2.3. Waves of “Enlivening” 2.4. The New Normal: Policy-Making Under Zhu Rongji 2.5 Conclusions 3. The Turning Point: Reviving Industrial Policy, 2006-2013 3.1. The Resumption of Industrial Policy in 2006 3.2. The Megaprojects 3.2.1. Technology Choice in the Megaprojects 3.2.2. Megaproject Management 3.2.3. Evolution of the Megaprojects 3.3. The Second Wave: Strategic Emerging Industries 3.3.1. A Fully-Fledged Industrial Policy 3.3.2. Formulation of the SEIs 3.4. SEIs and the Policy Turning Point 3.5. Conclusions 4. The Innovation-Driven Development Strategy, 2015-Present 4.1. Targeting a Technological Revolution 4.2. A Key National Policy 4.2.1. A Portfolio of Policies with an Integrating Vision 4.2.2. Authoritative National Policy 4.2.3. Cycles and Waves of Policymaking 4.3. Magnitude of the Policy 4.4. Industrial Policy for a Technological Revolution: General Purpose Technologies 4.4.1. Downstream: Three Areas of Application 4.4.2. Upstream: Key Sectors for the Technology Triangle 4.4.3. Chinese Strategy: Upstream and Downstream Together 4.5. The Latest Component: New Infrastructure 4.6. The Broad Development of Industrial Policy and Economic Strategy 4.7. Key Success Factors 4.8. Conclusions 5. Instruments and Institutions 5.1 Combining Market Forces and Government Direction 5.1.1. Flexible, Pragmatic, and Opportunistic 5.1.2. Spending and Raising Money 5.2. Institutional Creation: Industrial Guidance Funds 5.2.1. Industrial Guidance Funds - A Quantitative Sketch 5.2.2. Key Institutional Features of IGFs 5.3. The Funding Hierarchy 5.3.1 State-owned Banks 5.3.2. State Investment Corporations 5.4. Institutions and Issues: Evaluation 5.4.1. Dominance of Government Expenditure 5.4.2. Implicit Government Guarantees 5.4.3. Soft Corruption 5.4.4. Investment Bubble 5.5. Conclusions 6. Conclusions References "Is China’s dramatic rise due to its adoption of targeted industrial policies? Is there a “Chinese model” that will shape China’s future growth? In The Rise of China’s Industrial Policy, Barry Naughton disentangles the threads of China’s industrial policies over the past forty years. He shows that earlier attempts at planning did not cause China’s rapid rise, while China today is engaged in an unprecedented -- and potentially risky -- effort to mobilize resources and steer the economy toward a new technological future. The success or failure of this Chinese effort will shape our common global future."--Page 4 de la couverture