The Chinese developmental state in transition: in light of the East Asian experiences

Abstract

Current debates over China’s industrial policy are the responses to the growing concerns over China’s economic slowdown since late-2000s. After earlier efforts pursuing industrial upgrading, the country now starts to reassess its state-led development strategy. Going forward, the question arises: Why is it necessary to shift from state-led approach to market-enhancing strategy? Grounded on the similarities between the Chinese case and its East Asian neighbors, the paper first reviews the developmental experiences of those East Asian development states and then proposes a hypothesis that heavy state intervention works only for late-developers but less so for economically leading counties. The findings of the paper will not only just shed new light on the general associations between development stages and development strategies but also offer additional references for the countries bidding farewell to economic backwardness.