Poverty Reduction in China: Experiences and Measurement of Effects

This study employs the generalized method of moments(GMM)and panel vector autoregression(PVAR)models for a multi-factor quantitative dissection of China’s poverty reduction process across multiple stages,using provincial panel data from 2000 to 2019.According to our research,economic growth and social development are the key drivers of poverty reduction in China,but the trickle-down effect of economic growth is diminishing and marketization is having a lesser pro-poor effect.Public expenditure has failed to provide social protection and income redistribution benefits due to issues such as targeting error and elite capture.Increasing the efficiency of the poverty reduction system calls for adaptive adjustments.Finally,this study highlights China’s poverty reduction experiences and analyzes current challenges,which serve as inspiration for consolidating poverty-reduction achievements,combating relative poverty,and attaining countryside vitalization.

New Industrialization: Characteristics, System Development and Implementation Pathway

New industrialization in China, different from its past economic development pattern or patterns in developed nations, is the country’s theoretical innovation based on the positive and negative experiences of industrialization at home and worldwide. New industrialization has various novel characteristics, including new sources of efficiency, new factors of production, new organizational forms, and new constraints. In addition, it has certain particularities arising from modernization with Chinese characteristics. This article summarizes the characteristics of new industrialization from the perspectives of people-centered approach, quality-first concept, independent innovation, green low-carbon economics, digital-real integration, and open circulation. There are four systems for promoting new industrialization: A self-sustained scientific and technological system, a high-end advanced manufacturing system, a green low-carbon circular system, and a division of labor system with domestic and international circulation. The Chinese new industrialization proposes the pathway and policy measures considering the new global situation and the requirements of new goals of strengthening organization and leadership, reducing factor cost, accelerating independent technological innovation, smoothing domestic and international circulation, and optimizing competition environment.

China’s Industrial Modernization:Development Rationale,Current Status,and Policy Directions

Economies that have effectively escaped the“middle-income trap”demonstrate common traits in their industrial restructuring as they progressed to high-income status.These include a relatively stable share of an economy’s manufacturing sector,a reasonable economic structure,enhanced industrial capabilities,and growth driven by innovation.However,late-moving countries face a number of hurdles as they strive to cross this threshold.China’s development advantages include,among other things,a complete industrial system,a more balanced industrial structure,growing indigenous innovation capabilities,continual expansion and upgrading of domestic demand,and a greater degree of openness.These capabilities have provided continuous momentum for industrial growth,allowing China to capitalize on the next wave of technological and industrial revolutions while also promoting long-term,steady industrial development.During its modernization efforts,China has seen substantial changes in the external environment surrounding its industrial development.We must not only recognize the increasing complexity,intensity,and uncertainty of these changes,but also take proactive steps to solve diverse issues and capitalize on opportunities arising from global digital and green transitions.Equal focus should be placed on strengthening reforms and promoting high-level openness,improving policy coordination and consistency,and pursuing an innovation-driven strategy.This will speed the development of a modern industrial system and encourage the formation of new,high-quality productive forces.

Industrial Organization in the Digital Economy Era:Evolution and Effects

Advances in digital technology and vast data applications have resulted in the emergence of the digital economy paradigm,which is a new techno-economic paradigm for the digital economy age.Under this paradigm,the industrial organization has shifted toward networked,platform-based,boundaryless,and integrated development with new characteristics.Specifically,there has been a fierce“positional arms race”fueled by financial capital,accelerating the growth of platform companies.The“hierarchical monopolistic competition”market structure has taken shape,resulting in a“coexistence without disruption”monopolistic competition.As platform businesses expand into new business sectors,competition among industrial ecosystems intensifies.Data and algorithms have become secret weapons for corporate success,allowing platform companies to expand their monopolistic forces.Industrial organization in the digital era has revolutionized the operating rules and logic of industrial economy,giving rise to new industries,business models,and paradigms,as well as being conducive to international cooperation and intelligent regulation.Meanwhile,it has introduced new challenges to socioeconomic development,making platform companies’anti-competitive and monopolistic behaviors more implicit,privacy and security concerns more conspicuous,and antitrust identification and investigation more difficult.The government should embrace the evolving trends of industrial organization in the digital economy era,accelerate regulatory transition,and strengthen governance and regulation under the digital economy paradigm.

Connected Advantage Interlinked supply chains are good for both China and the rest of the world

As both a beneficiary of global supply chain integration and a contributor to the creation of a new supply chain ecosystem,China is of immense importance to the growth of international supply chains.For example,it’s manufacturing industry is indispensable across every stage of the global supply chain from raw material to intermediate goods production and the assembly of finished products.And with a large consumer base,China has been the place where global goods and services are consumed.

Seven-Decade Structural Transformation of China’s Industrial Economy

Over the past seven decades since the founding of the People's Republic of China in 1949,China's industrial structure has experienced transformations in various stages,which is consistent with the general pattern of industrialization and China's domestic and international situations.These changes also have to do with China's reforms in building the socialist market economic system.China's seven-decade industrial structural transformation offers valuable experiences:In promoting its industrial development,China has persistently carried out economic reforms,kept pace with changing factor and demand structures,invested in technology importation and innovation,leveraged global resources and markets,and formulated development policies in line with specific industrial development stages.Despite industrial structural problems,China has set the stage for innovation-driven development,further opening up,and balanced regional development.China's industrial structure will keep evolving amid its transition toward a competitive industrial nation.

A Review and Outlook of the Centennial of China’s Industrialization:The CPC’s Industrialization Strategy

Industrialization has been a dream for the Chinese nation since modern history and a goal of the Communist Party of China(CPC).Ever since its founding in 1921,the CPC has been exploring a path for China’s industrial development based on socialism as the political and institutional premise.Since the founding of the People’s Republic of China in 1949,the Chinese people have established a socialist system under the CPC’s leadership and carried out industrial development for over seven decades in the world’s most populous country,blazing a new trail of socialist industrialization with Chinese characteristics.Under the CPC’s leadership,China established an independent and complete industrial system in less than three decades from 1949 to 1978,and developed into the world’s largest industrial power with the most complete industrial sectors in over three decades from 1979 to 2016.In its future industrial development,China aims to complete new-type industrialization by 2035,build a modern economic system,reach the level of moderately developed countries in terms of GDP per capita,and develop into a major world industrial power by the centennial of the founding of the People’s Republic of China in 2049.

AModeling Analysis of Local Governments Competing in Offering Subsidies to Attract Investment：the Cause of Industrial Overcapacity]

Although championed by academia and policy-makers, the theory of ＂wave phenomenon＂ is a questionable explanation for overcapacity. First, enterprises do not necessarily share the same expectation for future demand of a promising industry. Second, in its model, overcapacity is explained as a deviation from equilibrium under the incomplete information hypothesis, which is in fact nothing but normal in a market economy. The prime reason for overcapacity resides in the fact that local governments are engaged in a subsidy competition to attract investment. We endeavor to illustrate the following via modeling： the subsidy effect produced by local government＇s offering of cheaper land and matching loans results in less investment from companies. Under this circumstance, enterprises channel a disproportionate amount of funding to building production capacity, which overloads the entire industry. To address the problem, reforms are needed in land property, environmental protection policies, and financial and fiscal systems.

Estimation of emission reduction potential in China's industrial sector

The industrial sector is usually the largest economy sector for carbon emissions in many countries,which made it the sector with greatest potential for carbon reduction although the process duration might be very long.Studying the potential of industrial emission reduction has great significance in estimating the carbon emission peak of China on the one hand,and adjusting its strategy in international climate change negotiations.By employing the economic accounting method,this article estimates the emission reduction potential of China's Industrial sector for the period of 2010-2050.It reveals that,taking 2030 as the year when the emission reaches the peak,the total reduction can be 8.38 billion tons(bts) for the period of 2010-2030,with 3.12 bts from structural reduction while 5.26 bts from intensity reduction.Afterwards,reduction will continue with a total amount of 6.59 bts for the period of 2030-2050,where the structural reduction accounts for 2.47 bts,and intensity reduction 4.115 bts.If both industrial and energy consumption structures are improved during the above period,the reduction potential can be even greater,e.g.the emission peak can arrive five years earlier(in the year of 2025) and the peak value can decline by about 8%as compared to the original estimation.Reviewing the trajectory of emission changes in developed countries indicates that the industry sector can contribute to the overall reduction targets through the dual wheels of structural reduction and intensity reduction,even beyond the emission peak.This article concludes with the following policy suggestions.(1) Our estimation on the emission peak of the industrial sector suggests that China should avoid any commitment earlier than 2030 on the timeline of the overall emission peak;(2) the great potential of industrial emission reduction can improve the situation of China in climate change negotiation,where the intensity reduction can serve as an important policy option.(3) Reduction potential can be further enhanced through technology advancement,which requires furthering of market oriented reforms and improvement of institutional design.(4) To secure the reduction effects of the industrial structure adjustment,the balanced development among different regions should be encouraged in order to avoid the reverse adjustment caused by industrial transferring.(5) International cooperation promoting the application and development of industrial emission reduction technologies,including carbon capture,utilization and storage,should be encouraged.

Industrial Ecosystem and the Development of Strategic Emerging Industries

Based on the theories of business ecosystem and national innovation system, this paper proposes a concept of industrial ecosystem. Differ from ecologists and environmentalists who regard industrial ecosystem as the natural ecosystems in which material, energy and information circulates, this paper defines industrial ecosystem as a set of factors that are vital to the development of a certain industry and their interrelationship. The industrial ecosystem consists of three sub-systems that are innovation ecosystem, production ecosystem, and application ecosystem, and subsidiary factors that include factor supply, infrastructure, socio-cultural environment, international environment and policy system. The industrial ecosystem is characterized by interdependencies, complex interactions, self-recovery and co-evolution. The development of an industry is＇ the result of the reaction of the whole industrial ecosystem; therefore, the competition in strategic emerging industries among countries is in essence the competition in industrial ecosystems. Those countries which are able to take the lead in setting up complete industrial ecosystem will occupy advantage in developing strategic emerging industries. Cultivating and developing strategic emerging industries requires promoting the development and coordination of the whole ecosystem.

Systematic Optimization of China's Manufacturing Industrial Structure

Using China's two-digit manufacturing sectors as samples, this paper first analyzes China's output structure optimization objectives and energy conservation and emissions abatement potentials in 2015, then examines various factor inputs' matching, and estimates their capacity utilization status, focusing on capital stock factor. Results of our study suggest that:(1) China's manufacturing output structure has great potentials of optimization to reduce energy intensity and carbon intensity by 18.08% and 17.42% respectively over the original values;(2) to reduce factor mismatch, various supporting input factors need to be introduced after manufacturing output structure optimization. The level of capital stock, in particular, requires a substantial change;(3) China's manufacturing capacity utilization(56.14%) in 2015 was far below its average level(73.27%) in the mid and late stage of the 11 th Five-Year Plan period(2008-2010). The low capacity utilization was attributable to economic slowdown and investment inertia. After input factor matching, capacity utilization may rise to the latter level.

China's 60 years of industrial transformation reviewed

In China, the real industrialization and modernization process started in 1949, when the Chinese people were emancipated from the yoke of the Kuomintang and the People's Republic of China (P.R.C) was founded. However, the road of emancipation has been a bumpy one. In particular, the emancipation of the mind has often been full of twists and turns. The tremendous liberation of social productive forces originated in the emancipation of the mind, whose truth has been tested by economic development practices. In the past 60 years China has paid tremendous efforts and costs in pursuit of emancipation, and today it still needs to emancipate the mind anew. For 60 years, since the formation of P.R. C, the country has kept pursuing the emancipation of the mind while exploring ways of change in institution, strategy and policy. In the first 30 years China attempted to devise an idealistic approach of transition to the socialist planned economic system, which was characterized by continuous revolution and movement. In the second 30 years China explored a realistic approach of transition to the socialist market economic system, which is characterized by incremental reform and opening-up. For six decades industry has remained at the forefront of transformation. The emancipation of the mind and the realization of change aim to ultimately make China a strong nation with an affluent people. The purpose of the six-decade struggle in new China is to erase the stigma of "being poor and blank," secure a firm and strong foothold in the world, restore China's status as a world power and let the Chinese people enjoy the affluence and welfare of a well-off society. The central mission of this national revitalization is to realize industrialization. Therefore, industrialization has been the central theme of China's revitalization in the past 60 years. After 60 years of industrialization, hundreds of millions of Chinese people are now able to enjoy ever-increasing wealth from industrial civilization. However, still a larger proportion of China's 1.3 billion people are awaiting industrial civilization. In this sense, industrialization is not only the focus of China's socioeconomic development but also the world's largest livelihood mission. Industrial development is more of a means of enhancing people's livelihood than a means of regaining the title as a world power. This will become one of the distinctive characteristics of China's industrialization in the new stage.

What Accounts for Rising Profitability of Chinese Industrial Enterprises?

Based on the latest data, this paper analyses the profitability status of Chinese enterprises and the reasons behind profitability. The authors hold that the profitability of Chinese industrial enterprises has improved significantly whilst the degree of monopolization and extent of entry barriers in the industrial sector has decreased. With the exception of a few resource and administrative monopolizing industries, the increasing profitability of Chinese enterprises indicates rising competitiveness. Improved management level, efficient assets operation, enhanced investment benefits and salary-transfer-profit are all contributing to the profitability of enterprises.

The environmental costs of China's industrial development

This paper estimates China’s industrial costs under the virtual cost accounting approach.The estimation results show that Chinese industries have disbursed an increasing amount of environmental costs since 1992 while expanding environmental investment;China’s industrial cleanness has been on the rise since 1998;the virtual industrial environmental costs have been in decline since 1998.In 2007,the total industrial environmental costs accounted for merely 0.73%of gross industrial output value and only 2.52%of industrial value added;the virtual environmental costs accounted for merely 0.23%of gross industrial output value and only 0.81%of industrial value added.These figures indicate that the effects of environmental costs on the international competitiveness of Chinese industries are very limited even if China complies with the highest environmental standards.

A regional comparison of China's industrial development efficiency

The Chinese economy has been experiencing extensive growth for decades. Along with this growth, however, there have been industrial-economic, social and environmental inefficiencies. In some regions, problems exist because of overemphasis on GDP growth, or growth at the expense of the environment. Looking at efficiency through the prism of economic, social and environmental factors, this article analyzes the industrial economic development during the 10th Five-Year Plan (2001-2005). The authors conclude that economic development should be achieved while making overall improvements to economic, social and ecoenvironment efficiency.

Simulation Analysis of Macroeconomic Policy Orientations' Effects on the Industrial Economy——Based on Dynamic CGE Model

There are three different orientations of the macroeconomic policies,namely,factor-expansion,prudent-continuation and structural-adjustment.The paper uses the dynamic CGE model to simulate the effects of the three different orientations on the economy,and arrives at the following conclusions:while the factor-expansion policies can lead to growth of economic output,they also result in the further imbalance in the industrial structure and the "crowding-out effect" on the private investment.In addition,such growth is unsustainable in the long run;the growth of the industrial economy will decline rapidly to a lower level after reaching a certain high level.The prudent-continuation policies refer to the continuation of the current policies that sustain the current trends of the industrial economy,and such policies reduce the growth of the industrial economy to a lower level in the long run.The structural-adjustment policies reduce the economic output at the current stage;however,it can bring a gradual improvement of industrial structure and a balance of the supply and demand.In the long run,the optimized structure will improve the total factor productivity(TFP) and the production-possibility frontier,and thereby realize a longterm steady and rapid growth of the industrial economy.Four policy recommendations are proposed based on the simulation of the models,including taking the structural adjustment as the fundamental orientation of macroeconomic policies,lowering the "floor level" of economic growth with macro regulation,giving play to the fundamental role of market mechanism in structural adjustment and increasing the role of TFP in the growth of the industrial economy.

The Mission and Value of Industry——Theoretical Logic of Industrial Transformation and Upgrading in China

China is currently in a critical stage of industrial transformation, the key to which is the transformation of the manufacturing industry. Research on industrial transformation is essentially an exploration of the origin of industry and the values of industrial development. Industry offers the impetus for human development and contributes to social welfare. Industrial transformation is a simultaneous representation of the innovative and revolutionary nature of industry. Currently, industrialization is far from being complete in China and most regions of China have yet to develop a strong social foundation of modern industrial civilization. China still has large gaps with the standards of developed industrial powers. In addition to the lack of a solid industrial, technological foundation, China＇s industrial transformation and upgrade are confronted by the negative inclination towards excessive ＂instrumental rationalism＂. An obsession with speed, quantity, capital appreciation, and the single-minded pursuit of profitability have constrained the real values of industry. China＇ s current industrial transformation essentially requires a readjustment of the relationship between instrumental utility and real values and calls for a release of the innovative capabilities of industry. Currently, one of the most imperative, strategic tasks for China is to continue strengthening its industry. In-depth integration between industrialization and IT application will bring China＇ s industrial civilization to a new level.

The Integrated Development of China's Industrial and Ecological Civilization:Paths and Policy Options

Judging by the general pattern of human civilization, ecological civilization is not a simple negation of industrial civilization. Given China＇s unique national conditions and uneven process of industrialization, it is inappropriate to separate eeological civilization from industrial civilization. Instead, government should identify the common ground between industrial civilization and ecological civilization, fully utilize material wealth, technology means and organizational system of industrial civilization of the world, leave the freedom of imagination and practices for creating the new-type industrial civilization to businesses and the public, continuously strengthen the material foundation of China＇s ecological civilization, with a view to supporting the development of ecological civilization with high-quality real economy and achieving the integrated development of industrial civilization and ecological civilization while expediting the new-type industrialization and delivering the benefits of industrialization to 1.3 billion Chinese people.

Industrial Policy Analysis of Restricted Development Zones in Western China——A Study of State-level Main Producing Areas of Agricultural Products and Key Ecological Functional Areas

As one of the important policies of promoting the formation of main functional areas, the industrial policy directly determines the sustainable growth of space control ability of main functional areas. A restricted development zone is a type of main functional area which provides agricultural products and ecological products, assures the supply of national agricultural products and the stability of ecosystems, as well as safeguards the ecological functions and agricultural functions of wider regions by restricting its own development. Therefore scientific, complete and operable industrial policy support is needed. Restricted development zones are distributed widely in western China. With the restriction of their main functions, differential industrial policies should be implemented in the development of the restricted development zones: Dealing well with the relationship between industrial development and ecological protection, developing special industries which are friendly to resources and environment and appropriate for local conditions, guiding and encouraging industries to learn from regions with favorable development conditions, orderly withdrawing industries and enterprises adverse to main functions, facilitating industrial structure upgrading, optimizing industrial organization, improving industrial technological level and rationalizing industrial layout.

China's Industrial Economy Evolves into an Era of Steady Progress:Prospects and Challenges

China's industrial economy's.growth has steadily evolved into a period of slowdown but the development momentum of its industrialization and urbanization requires and supports a relatively high rate of growth of the industry.Rapid growth has transformed into an era of "steady progress ".That heralds great changes in the momentum of growth,the nature of institutional systems,and policy concepts of the industrial economy.The character of industry and the achievement of healthy development are the essence of industrial advancement in the era. "Steady progress" requires a stabilization of attitude,policy and expectation. "Progress " calls for better quality of growth,equilibrium and environmental performance.Above all,advancing reforms is fundamental to achieving these new objectives of the "steady progress ".As market is potentially powerful while government's function is limited,only moderate,prudent and cautious government regulation will provide the reliable policy assurances necessary to set China's economy firmly on the track of steady progress and sustainable growth.