Abstract

Since 1978 industrial development has been the most important engine of the economic growth in China and it has been mainly powered by a process of fast capital accumulation and supported by intensive and extensive industrial policies. This paper is organised in three main sections. Firstly, we briefly describe some evident facts in the Chinese development dynamics, focusing on trends in gdp growth, investments and savings. Secondly, we describe how industrial policies developed during three periods of economic reforms, stressing the international integration and globalization of the whole Chinese economy, the processes of institutional building and, particularly, the State Owned Enterprises' transition to market economy. Finally, we underline some critical aspects for the future of China development related more to social and political matters, such as further institutional learning, a market-sustainable relationship between the private and public sectors, and the consumers' familiarity with the market.