China's economic strategy: when theory meets practice

ABSTRACT

In the recent years, the Chinese government under Xi Jinping's leadership has outlined an ambitious economic strategy for China, manifested in the following four key elements: further reform towards the marketisation of its economy, ‘Made in China 2025’, the mega project BRI, and a new model of China–US relations. However, there are severe contradictions between these elements and China has also met many challenges internally and externally when implementing this strategy. After discussing those challenges, this article makes a recommendation for China's strategic direction of its national development in the short term.

KEYWORDS:

• China's economic strategy
• challenges
• reform

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes on contributors

Dr Jade Guan is a lecturer of Strategic Studies at Deakin University in Australia and an academic adviser for the Defence and Strategic Studies Course at the Australian War College in Canberra.

Professor Yinhong Shi is a professor of International Relations, Chairman of Academic Committee of the School of International Studies, and Director of the Center on American Studies at Renmin University of China in Beijing. His profile in English is available https://thebeijingcenter.org/people/shi-yinhong/

Notes

1 Ministry of Finance of China in September 2019 issued special bonds of 3.08 trillion RMB to Chinese local governments. In November 2019, it issued another new quota of 1 trillion yuan for special projects in 2020. See China Economic Daily. 2019. “财政部提前下达明年1万亿新增额度” (The MoF has issued a new quota of 1 trillion yuan in advance for next year), November 29. http://www.gov.cn/xinwen/2019-11/29/content_5456887.htm

2 This was in Deng Xiaoping's Southern Tour Speech made in 1992. In Chinese political discourse, the Right refers to those favouring liberalism and the Left preferring a planned economy.