Whither China? Chinese leaders ponder choice between 2 economic modelsDecember 19, 2011
The European Council on Foreign Relations has produced a new China Analysis that compares two models for the Chinese economy that leaders are debating as they consider China’s future path. The models are named after two Chinese geographical entities- the city of Chongqing in Central China, and the Southeastern coastal province of Guangdong. The Chongqing model is largely a continuation of the current scheme – luring foreign investment and rapidly growing GDP through large exports. The Guangdong model, on the other hand, is a move away from the export based strategy and an attempt to build a sector leading high tech economy. The Chongqing model, I think, is nearing (and possibly has already reached) its peak; the Guangdong model, on the other hand, presents a difficult road and is far from a sure thing.
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