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China's economic recovery and the China model

  • Baocheng Ji
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    Starting with the US subprime crisis, the world has fallen into the most severe economic crisis since the Great Depression. Unlike other major nations, China was the first to recover from the economic downturn. Researchers and policymakers have begun to wonder if China could actually bring the world out of the financial crisis. This paper intends to contribute to the discussion relating China's outstanding economic performance with reference to the 'China model'. China has recently managed to escape from the world economic recession and demonstrated a strong tendency for full recovery. The core reason lies in the fact that the Chinese system is characterized with a unique mechanism of resource allocation, and a macroeconomic decision-making process functions as a powerful and effective instrument with regard to crisis management. Moreover, the existence of state enterprises that are compatible with a market-oriented economy has played an important role in stimulating economic activity.

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    Article provided by Taylor & Francis Journals in its journal Journal of Chinese Economic and Business Studies.

    Volume (Year): 8 (2010)
    Issue (Month): 3 ()
    Pages: 215-226

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    Handle: RePEc:taf:jocebs:v:8:y:2010:i:3:p:215-226
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