ABSTRACT
In China, regional economic policy has for many years been made as part of the macroeconomic policy. Political considerations have played a major part in the formulation of Beijing’s policy stances with regard to regional economic development. Regional industrial structure and regional industrial specialization have been controlled by the central government, while local governments have been treated only as implementation units. This kind of centralized planned economy, though it may be conducive to overall capital accumulation and industrialization, also made free flow and/or union among regions almost impossible.
