Finance & economics | The incubator state

Xi Jinping’s bold plan for China’s next phase of innovation

If it works, the strategy will redraw the country’s economic map

|SHANGHAI

THINGS ARE looking bright for Zhuzhou. The city of 4m people in landlocked Hunan province has often caught the runoff of industrial business from the more populous provincial capital, Changsha, to its north. In the 1990s it became a regional hub for chemicals and metals production. But that caused horrible environmental destruction; more than 1,000 polluters were eventually shut down, with dire economic consequences. Zhuzhou’s inland economy has remained behind that of coastal cities. Over the past decade its moderate growth has been typical of the mid-tier cities that dot China’s interior.

This article appeared in the Finance & economics section of the print edition under the headline “Xi’s incubator state”

What China is getting wrong: It’s not just covid

From the April 16th 2022 edition

Discover stories from this section and more in the list of contents

Explore the edition

More from Finance & economics

A ping pong game with a container instead of a ball.

Do tariffs raise inflation?

Usually. But the bigger problem is that they harm economic growth and innovation

A Gulfstream G600 from Hampshire Aviation Company lands at Barcelona Airport in Barcelona, Spain.

European governments struggle to stop rich people from fleeing

Exit taxes are popular, and counter-productive


Eagle claws, getting ready to collect bonds from a top hat.

Saba Capital wages war on underperforming British investment trusts

How many will end up in Boaz Weinstein’s sights?


Has Japan truly escaped low inflation?

Its central bankers are increasingly hopeful

How American bankers dodged the MAGA carnage

The masters of the universe have escaped an anti-globalist revolt