An analysis of China’s industrial policy including conceptual frameworks and its differences with other East Asian countries

Executive Summary: one of the Key debates in the developmental literature is the role of government intervention in East Asia. China has generated huge growth rates over recent decades hence this report analyses the industrial policies they used extensively from a historical perspective to how they developed. A comparison will then be made with the industrial policies of Japan, Taiwan and Korea (JTK), where this report finds considerable similarities which are probably due to geography and trade links. The development of the conceptual framework will be analysed as China progressed from a planned economy to a more neo-liberal one, opening up to foreign trade. The Chinese economy poses many opportunities for western firms, hence this report will then assess the implications of Chinese industrial policy on western companies, operating in China.

Contents An analysis of China’s industrial policy including conceptual frameworks and its differences with other East Asian countries 1 Introduction 2 China development model 4 How china achieved economic growth 4 China’s ‘great leap forward’ 5 The ‘open door policy’ 5 Special Economic Zones 6 How Chinese industrial policy generated growth 7 Asian development model 7 Similarities 9 Differences 9 Economic makeup 9 Competiveness 10 FDI 11 Consequences for western business of Chinese industrial policy 12 Conclusion 13 Bibliography 14 References 17

Introduction
In this report I will consider how China has achieved its rapid economic growth through its rigorous use of industrial policies, I will then compare and contrast their policies with those of East Asia. More specifically I will focus on Japan, Taiwan and Korea (JTK) the ‘east Asian development model is based