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How China Should Use Its Foreign Reserves

Enabling Privatization Without Social Disorder

Deepak Lal

How China Should Use Its Foreign Reserves

China’s labor-intensive economic growth over the last two decades allowed the transfer of a vast amount of low-wage labor from both the rural sector and the declining state-owned enterprise (SOE) sector. That allowed China to grow by “walking on two legs”: by keeping the SOE sector alive while the...