Inside China's Economic Development

Drawing on years of teaching and research by Lan Xiaohuan, an associate professor at Fudan University’s School of Economics, this book integrates economic principles with the practical realities of China’s economic development, with a particular focus on local government investment and financing. The work is organized into two parts. The first part explains microeconomic mechanisms, covering local government operations, revenue and expenditure, land financing and development, investment, and debt. The second part examines how these microeconomic behaviors connect to broader macroeconomic phenomena, including urbanization and industrialization, housing prices, regional disparities, debt risks, domestic economic structural imbalances, and international trade conflicts. The closing chapter offers an overview of China’s political economy system and outlines the basic methods local governments use to manage the economy. The author argues that the Chinese government has played a crucial role in promoting economic development, while also gradually establishing and improving market mechanisms through its deep involvement in industrialization and urbanization. By exploring the complex relationships between local government actions and wider economic trends, the book provides a comprehensive understanding of China’s economic development and the mechanisms underlying it.