How China Works: An Introduction to China’s State-led Economic Development

A Chinese political economy bestseller, with over 1.5 million copies sold, which provides the first systematic explanation of how the Chinese economy works. The author uses accessible language to reveal the complex interrelationships between macroeconomic trends, center-region relations, the land and real estate market, public finances, the bureaucratic system, social inequality, the stock market, industrial development, and foreign trade imbalances. Through the prism of business cases from a number of industries and companies, the book shows how the state attracts capital and invests it in development, without relying solely on the “invisible hand” of market forces. The book identifies the objective root causes of serious structural problems in the Chinese economy, their impact on the global economy, and possible solutions. The book is based on the latest research and will be of interest to anyone fascinated by modern China, economic development models (developmentalism), and international trade, as well as anyone who works with Chinese partners in a practical capacity.