The growth champions of the past few decades – Japan in the 1950’s and 1960’s, South Korea from the 1960’s to the 1980’s, and China since the early 1980’s – have all had activist governments collaborating closely with large businesses. All aggressively promoted investment and exports while discouraging (or remaining agnostic about) imports. Some believe that China’s pursuit of a high-saving, large-trade-surplus economy in recent years embodies mercantilist teachings. Do you agree? What is the proper role of the state in the modern economy? How does this growth strategy compare to others?
China‘s economic structure