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Frontiers of Economics in China

Front Econ Chin    2011, Vol. 6 Issue (3) : 345-358
On Deep-Rooted Problems in China’s Economy
Guoqiang Tian()
Department of Economics, Texas A&M University, College Station, TX 77843, USA School of Economics and Institute for Advanced Research, Shanghai University of Finance and Economics, Shanghai 200433, China
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China’s economy is currently at a crossroad leading to two different directions. One is to further deepen the reform, concentrate on crucial aspects and relax control over details, govern by non-intervention and let the market play an increasing role and lead the economy; while the other is to enhance the state sector with weakening the private sector, and let the government play a greater role and lead the economy. Which direction should China head for? The answer would undoubtedly be the former. As such, this paper argues that there does not exist the so-called “China Model” and attributes the deep-seated problems caused by those misconceptions in China’s economy to three pairs of “over-emphasis” versus “under-emphasis”, namely, over-emphasis on the government versus under-emphasis on the market, over-emphasis on enriching state versus under-emphasis on enriching the people, and over-emphasis on development versus under-emphasis on public service. Moreover, in regard to how to solve these problems, the paper proposes to further advance the two fundamental transformations of government functions: (1) to transform from a development-oriented government to a service-oriented government, and (2) to transform from an omnipotent government to a limited government.

Keywords government versus market      enriching state versus enriching the people      development versus public service      government functions     
Corresponding Author(s): Guoqiang Tian,   
Issue Date: 05 September 2011
 Cite this article:   
Guoqiang Tian. On Deep-Rooted Problems in China’s Economy[J]. Front Econ Chin, 2011, 6(3): 345-358.
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