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

This book, a bestseller in China with over a million copies sold, depicts the role played by the Chinese government in China‘s economic development. It explains how the Chinese government has gradually established and improved market mechanisms while promoting economic growth. The book particularly points out that the Chinese government not only governs the economy through policy guidance but also directly participates in the process of urbanization and industrialization as part of the market. It also introduces the specific mechanisms of government involvement in economic activities, which forms a bridge between economic theory and the reality of China. This book, a winner of the Wenjin Book Award by the National Library of China, will be an invaluable reference for scholars seeking to understand China‘s economic policy and government system reform in the years to come.

Part 1: Microeconomic Environment.- Chapter 1: The Roles and Responsibilities of Local Government.- Chapter 2: Finance, Taxation and Government Behavior.- Chapter 3: Government Investment, Financing and Debt.- Chapter 4: Government and Industrialization.- Part 2: Macroeconomic Consequences.- Chapter 5: Urbanization and Imbalances.- Chapter 6: Debt and Risk.- Chapter 7: Domestic and International Imbalances.- Chapter 8: Summary: Government and Economic Development in China.

Xiaohuan Lan is a professor of economics at the School of Economics, Fudan University. He is also a research fellow at the Shanghai Institute and International Finance and Economics. He received his PhD in economics from the University of Virginia. He was the Director of Strategy and Research at Yangtze River Industry Fund, one of the largest industrial investment funds owned by local governments in China.