Book contents
- Demystifying the Chinese Economy
- Demystifying the Chinese Economy
- Copyright page
- Reviews
- Contents
- Figures
- Tables
- Preface to the Second Edition
- Preface to the First Edition
- 1 Opportunities and Challenges in China’s Economic Development
- 2 Why the Scientific and Industrial Revolutions Bypassed China
- 3 The Great Humiliation and the Socialist Revolution
- 4 The Comparative Advantage-defying, Catching-up Strategy and China’s Traditional Economic System
- 5 Enterprise Viability and Factor Endowments
- 6 The Comparative Advantage-following Development Strategy
- 7 Rural Reform and the Three Rural Issues
- 8 Urban Reform and the Remaining Issues
- 9 Reforming the State-owned Enterprises
- 10 The Financial Reforms
- 11 Deflationary Expansion and Building a New Socialist Countryside
- 12 Improving the Market System and Promoting Fairness and Efficiency for Harmonious Development
- 13 Supply-side Structural Reform and Economic Transformation and Upgrading under the New Normal
- 14 China’s Economic Development and Cultural Rejuvenation
- 15 Reflections on Neoclassical Theories
- Book part
- Index
- References
13 - Supply-side Structural Reform and Economic Transformation and Upgrading under the New Normal
Published online by Cambridge University Press: 12 December 2025
Translated by
Book contents
- Demystifying the Chinese Economy
- Demystifying the Chinese Economy
- Copyright page
- Reviews
- Contents
- Figures
- Tables
- Preface to the Second Edition
- Preface to the First Edition
- 1 Opportunities and Challenges in China’s Economic Development
- 2 Why the Scientific and Industrial Revolutions Bypassed China
- 3 The Great Humiliation and the Socialist Revolution
- 4 The Comparative Advantage-defying, Catching-up Strategy and China’s Traditional Economic System
- 5 Enterprise Viability and Factor Endowments
- 6 The Comparative Advantage-following Development Strategy
- 7 Rural Reform and the Three Rural Issues
- 8 Urban Reform and the Remaining Issues
- 9 Reforming the State-owned Enterprises
- 10 The Financial Reforms
- 11 Deflationary Expansion and Building a New Socialist Countryside
- 12 Improving the Market System and Promoting Fairness and Efficiency for Harmonious Development
- 13 Supply-side Structural Reform and Economic Transformation and Upgrading under the New Normal
- 14 China’s Economic Development and Cultural Rejuvenation
- 15 Reflections on Neoclassical Theories
- Book part
- Index
- References
Summary
After 2010, China’s economic growth rate continued to decline. This is partly due to the fact that, after the financial crisis in 2008, the developed economies have not fully recovered, resulting in insufficient external demand for China. Meanwhile, China suffered from excess capacity. To address this malaise, in addition to reducing production capacity on the supply side, it can adopt beyond Keynesianism stimulus, featuring proactive fiscal policy to support investment in infrastructure. Such investments can help eliminate growth bottlenecks in industrial upgrading and strengthen weak links on the supply side.
Keywords
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- Information
- Demystifying the Chinese Economy , pp. 254 - 275Publisher: Cambridge University PressPrint publication year: 2026
References
International Monetary Fund. World Economic Outlook, October 2014. Washington, DC: International Monetary Fund, 2014. (www.imf.org/en/Publications/WEO/Issues/2016/12/31/World-Economic-Outlook-October-2014-Legacies-Clouds-Uncertainties-41632).Google Scholar
Lin, Justin Yifu. Against the Consensus: Reflections on the Great Recession. Cambridge: Cambridge University Press, 2013.CrossRefGoogle Scholar
Lin, Justin Yifu. “Industrial Policies for Avoiding the Middle-Income Trap: A New Structural Economics Perspective.” Journal of Chinese Economic and Business Studies 15(1) (2017): 5–18.CrossRefGoogle Scholar
Lin, Justin Yifu. New Structural Economics: A Framework for Rethinking Development, Washington, DC: World Bank, 2012.CrossRefGoogle Scholar
Lin, Justin Yifu. “Supply-side Reform Should Not Copy the West.” 2015 (www.guancha.cn/LinYiFu/2015_12_28_346137.shtml).Google Scholar
Mazzucato, M. The Entrepreneurial State: Debunking Public vs. Private Sector Myths. New York: Anthem Press, 2013.Google Scholar
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