State and Business Players in the Evolution of China’s Industrial Development

Abstract

China’s decades of economic development involve both state and business actors. The general assumption in policy circles is that the state and state-owned enterprises are the two major drivers of economic development. However, in an economy as large as China’s, the relations among a series of actors are key: central governments, local governments, state-owned enterprises, private businesses, and foreign-invested firms. One would not be able to gain a fundamental understanding of China’s economic ecosystem without examining the changing dynamics among these actors.

Keywords: China, political economy, state-business relations, economic policy