Policy Transfer and Banking Sector Reform – the Case of Launching the Strategic Management

This paper examines the process of policy transfer and administrative reform in China’s banking sector, focusing on the adoption of strategic management as a critical mechanism for modernization and market adaptation. Against the backdrop of China’s ‘Reform and Open Door Policy’ and its accession to the World Trade Organization (WTO) in 2001, the study explores how globalization and international competition compelled China’s banking industry to transition from a politicized, state-controlled system to a market-oriented, strategically managed sector. The paper analyzes the introduction of foreign management models, such as mergers and acquisitions, joint ventures, and strategic alliances, and evaluates their impact on improving banking sector efficiency, competitiveness, and service quality. It highlights the challenges faced during implementation, including increased competition from foreign banks and the resultant pressures on domestic banks, such as loss of indigenous capability and shifts in business focus. Using a policy transfer network model, the study assesses the role of the WTO as an agent facilitating international policy learning and transfer. The findings suggest that China’s banking reform represents a form of elite renewal driven by pragmatic policy borrowing and adaptation, contributing significantly to China’s broader economic reform and transition to a market economy. The paper concludes by discussing the implications of these reforms for understanding policy transfer processes and the evolution of China’s financial sector within the global economy.