Economics, Econometrics and Finance
4 years ago

Chinese industrial policies fail to influence investment patterns, driven by profitability.

SSRN Electronic Journal
Industrial Policies and the Changing Patterns of Investment in the Chinese Economy
Carsten A. Holz

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Investment in China has been a big deal for a long time. In 2004, the government changed how they control investments, focusing on specific industries. But it turns out, these new policies haven't really influenced where money goes. Instead, investments seem to be driven more by making money and private businesses than by government rules. This means that China's investment patterns don't really follow the government's plans like "Made in China 2025".