Nicholas R. Lardy, The State Strikes Back: The End of Economic Reform in China?

Excerpt

During the much anticipated Third Plenum of the 18th Chinese Communist Party (CCP) Congress in 2013, the party announced that it must ensure that “the market has a decisive role in the allocation of resources.” The change of language from “decisive role” (决定性作用) to “basic role” (基础性作用) was so significant that many observers believed that it signaled President Xi’s commitment to fundamental and deep market-oriented reform. More than five years from the announcement, Nicholas Lardy contends, in his new book The State Strikes Back, that the CCP has not met the commitment to pro-market reforms, and Xi has consistently championed the role of state companies. Lardy concludes that “absent significant further economic reform returning China to a path of allowing market forces to allocate resources, China’s growth is likely to slow, casting a shadow over its future prospects” (p.2). …