Central-Local Relations and the Rise of the Corporate Economy in Contemporary China

  • Jinhua Cheng
Part of the Governing China in the 21st Century book series (GC21)


This chapter is a case study of the impact of central-local relations on economic growth in the People’s Republic of China during the market transition period and an application of the dual intergovernmental transformation for market development (DITMD) model in the Chinese case. The main purpose of this chapter is to illustrate how the fundamental state-market dilemma has been partially resolved through separating the three hands of the state and dual intergovernmental transformation in the reforming China. Meanwhile, it also points out that the Chinese market transition is second best, at most. Not only has the transformation of state-market and central-local relations been incomplete, but also will further reforms be significantly constrained by the political nature of the regime, that is, a centralized one-party dictatorship.


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© The Author(s) 2019

Authors and Affiliations

  • Jinhua Cheng
    • 1
  1. 1.KoGuan Law SchoolShanghai Jiao Tong UniversityShanghaiChina

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