The State Strikes Back

The State Strikes Back examines China's economic trajectory from 2008-2018, focusing on the country's shift away from market reforms toward increased state control. The book analyzes data and policies to document how China's growth has slowed during this period. Nicholas Lardy traces the rise of state-owned enterprises and the corresponding decline of private firms in China's economy. He presents evidence about credit allocation, industrial policy, and the role of the Communist Party in business decisions. The book incorporates statistics and case studies to evaluate the costs of China's economic strategy under Xi Jinping. Charts and data visualizations support the analysis of investment patterns, productivity trends, and financial markets. At its core, this work raises questions about the sustainability of China's current economic model and the global implications of its policy choices. The tension between state control and market forces emerges as a central theme that shapes China's future prospects.

Readers value the detailed economic data and analysis of China's shift toward state control under Xi Jinping. Reviews highlight Lardy's documentation of declining private sector growth and increased state intervention in markets. Likes: - Clear presentation of economic statistics and trends - Well-researched evidence supporting key arguments - Balanced perspective on China's economic policies - Accessible writing for non-economists Dislikes: - Some found the writing dry and technical - Limited discussion of social/political implications - Several readers wanted more context about regional differences - Data mostly stops at 2016 Ratings: Goodreads: 3.9/5 (19 ratings) Amazon: 4.4/5 (31 ratings) One reviewer noted: "Provides concrete evidence of state sector's growing dominance, contrary to common assumptions about China's market reforms." Another wrote: "Dense with statistics but lacks broader analysis of what this means for China's future."

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🔹 Nicholas Lardy has been studying the Chinese economy for over four decades and is considered one of the Western world's leading experts on China's economic development. 🔹 The book challenges the popular narrative that China's slower growth in the 2010s was inevitable, arguing instead that it was largely due to deliberate policy choices. 🔹 The research shows that China's private sector consistently outperforms state-owned enterprises, generating returns on assets that are three to four times higher. 🔹 Despite President Xi Jinping's public statements supporting market reforms, the book documents how state intervention in China's economy actually increased significantly after 2012. 🔹 The Peterson Institute for International Economics, where Lardy is a senior fellow, has published several of his influential works on China's economy, including "Markets Over Mao" and "Sustaining China's Economic Growth After the Global Financial Crisis."