Of the many factors that have contributed to China’s industrial development and technological rise, the role of government policy has been impossible to ignore. Policies adopted by the central and local governments in China continue to exert enormous influence on industry in China. While China has been gradually moving to a development model that increasingly stresses market mechanisms over central planning, the state still intervenes in significant ways. It is therefore helpful to understand the policymaking process and how this process impacts the development of firms and industries, as well as how it affects the overall direction of China’s industrial development. This report gives an overview of the players, processes, and tools that comprise Chinese policymaking. Although this focuses on industrial policy, many of the descriptions and conclusions are applicable to the broader policy spectrum.
