Summary Of Wong's Model Of State-Led Development In China

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In the interview “Can China’s Model of State-Led Economic Development Pick Life Science Winners?” by Claire Topal, Dr. Joseph Wong discusses the potential positive and negative elements of Chinas state-led economic development model through the progression of the domestic life sciences sector. To illustrate Wong 's analysis on China 's economic development it is imperative that the differences between state-led and market led development approaches are defined. According the textbook Comparative Politics by Dickovick and Eastwood on page 104, market-led development is an approach to economic management in which the state aims to control the economic behaviour as little as possible. This approach follows Adam Smith 's laissez-faire ideology …show more content…
The textbook on page 420 and 421 discuss the history of China 's economic developments and failures such as the "Great Leap Forward" under Mao Zedong in the 1950 's-1970 's which led to famine as well as the "Cultural Revolution" under Deng Xiaoping in 1978 which, over the last 30 years has been a key influence in growing the economy. Some of the issues plaguing the modern Chinese economy are the vastly growing income inequality, the controversial nature of the low value of Chinese currency, especially in regards to trade with the U.S, and sustainability issues. Joseph Wong does not particularly touch on any of these topics other than the sustainability point. He addresses that China should focus on creating clean tech, one of the examples he gives is the growth of the solar energy sector. Wong however offers alternative issues to the challenges of Chinese development. The first is that the Chinese must maintain ahead of other countries creating cutting edge and innovative technology to stay in the game, second is to hone in on the success of foreign research and development firms and implement similar techniques of collaboration and knowledge transfers between Chinese tech firms to focus on competing in foreign markets versus one another. Thirdly, Biotechnology regulation should have strengthened regulatory frameworks to provide legitimacy and efficacy to their developments and finally, the state should work …show more content…
He also suggest that China needs to focus on creating effective intellectual property protections that are enforced through a strong rule of law so foreign research and development firms do not outsource to China out of convenience. These policies, he feels, will be advantageous in allowing domestic research and development to flourish. Joseph Wong’s final proposal is allowing formal or informal incentives for the government to take bigger risks in investment as it will be more conducive for innovation. The political economy of China is highly unique and both the interview and textbook case represent this position. China is a highly advanced economy, and it is highly adept at manufacturing and exports. China, as also explicitly highlighted in the article has the opportunity to be the frontrunners of life science innovation which is highly advantageous in the global market. The struggles that China faces with income inequality and sustainability should be key issues in fostering a productive economy that benefits all. Without considering these two factors, especially in regards to life science, biotech and technology advances, there is a dangerous precedent set for low standards in regards to human rights, poverty and health issues. Encouraging these values will allow China to dominate the global economic market, but

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