China’s economic transition is not ‘trapped’. Instead, China has the capacity to move forward to a more sophisticated and equitable economy.
As Minxin Pei has pointed out, senior Chinese leaders remain determined to maintain control over China’s massive banking sector, using it to accomplish a host of policy and political outcomes.
China has achieved considerable success in building the necessary institutions for a functional legalsystem. However, it seems that the Chinese government is more willing to nurture rule of law in certain areas, while striving to maintain excessive administrative discretion in other areas.
An overview of a range of reflections by leading experts on Minxin Pei's thesis that China's transition has stalled.
This brief presents an alternative view to Minxin Pei, arguing that while China faces daunting challenges, it has also undertaken significant institutional reforms.