China's Industrial Policy Transformation

In the recent two years, the debate on industrial policy has been in full swing among the academic circle. It is generally believed that the crux is not whether China needs industrial policies, but rather, what kind of industrial policies it wants. Thisbook believes that profound changes have occurred to the domestic and international environment, institutional background, and factor conditions during China's industrial development. As such, industrial policies must transform to return to the origin ofmaking up for market failures," while "government failures" should be avoided. To this end, it is suggested to establish a "market-friendly" industrial policy system dominated by functional industrial policies, in accordance with the requirements of building an "interactive and cooperative" government-market relationship to help transform and upgrade China's industries"--