Local Government and Big Business in the People's Republic of China -- Case Study Evidence from Shandong Province

Ling Liu

Asia Pacific Business Review, 2008, vol. 14, issue 4, 473-489

Abstract: China has implemented comprehensive industrial policies that originally had their origins in the command economy. It is argued in this case study that one characteristic of industrial policies in China involves government intervention at all levels, namely central, provincial, municipal, county, township and village. This article presents an in-depth examination of the role of provincial government in pursuing industrial polices and in constructing big businesses during the reform period. It draws the conclusion that even in the World Trade Organization (WTO) era, it is still feasible for provincial governments to manage the local economy and promote big businesses by allowing local firms to enjoy both economies of scale and subsidies.

Date: 2008
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DOI: 10.1080/13602380701458284

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