CUHK Research: Changing the world

accounts for 90 per cent of the national total, compared with about 25 per cent in most countries.” Professor Song notes local government officials in China have strong incentives for introducing special deals because they want to boost their career trajectories, which have often depended on strong economic credentials. “There are about 300 prefecture-level cities in China and their top officials want to promote economic development. You can conceptualise local government officials as venture capitalists who fiercely compete with one another,” the Shanghai-born economist says. Reducing misunderstanding between China and the US According to recent narratives prevalent in some western countries, China’s economic miracle stems from the top-down grand strategy devised by the Chinese government. “Western countries are worried about China’s emergence as an economic superpower and consider it a serious threat because China's economic growth appears unstoppable,” Professor Song says. But he believes that the extraordinary economic growth in China did not result from deliberate strategic planning by the central government. “It is precisely the It is the combination of special deals andpowerful local governments that underpinnedChina’s economic success over the past 30years. 53