Financial Mechanism in China’s Industrial Development: Success Stories and Weak Links

Since the reform and opening up program kicked off in 1978, China’s industrial development has achieved remarkable progress in terms of scale, diversification, transformation, and upgrading. This is the result of many factors working together, among which the financial factor is indispensable. Thanks to the financial restraint policy and online balance sheet repair strategy, China’s financial system has developed rapidly and maintained stability for a long time, thereby creating the prerequisite conditions for effective financial support to industrial development.