Ye, M. (2020). The Belt Road and beyond: State-Mobilized Globalization in China 1998-2018. Cambridge University Press. doi: 10.1017/9781108855389
VIctor Manuel Isidro Luna Victor Manuel Isidro Luna is an instructor in the School of Economics at the National Autonomous University of Mexico. He obtained a Ph.D. in Economics from the University of Utah (2013) and has numerous articles in journals such as Journal of Economic Issues, World Review of Political Economy, and Ecos de Economía. His main areas of interest are development banks, BRICS, and the role of money in development. Email:u0559410@uofutah.onmicrosoft.com
THIS BOOK EXPLORES THE CHINESE MOD- scription of the three national initiatives. The pro-
EL of development by reference to the notion of cess of the SMG starts with the announcement of
“coordinated-capitalist state”. The author of the ambitious and often ambiguous proposals by po-
book, Min Ye, associates China’s model with the litical leaders. The proposals are then interpreted
“state-mobilized globalization” (SMG) formula. by commercial actors, which, through the market,
According to Ye, over the last 20 years, China has results in feedback on the adequacy of the policies
witnessed a unique interaction between econom- for a fragmented bureaucracy. The process of the
ic and political actors. In the first place, political SMG is circular and conflictive, but in the end,
leaders formulate certain strategies, and then eco- it frequently leads to harmonious results. The re-
nomic actors such as private and state companies sources for carrying out projects are provided by
as well as subnational entities interpret these strat- taxing economic growth. All the actors involved
egies in an attempt to achieve economic growth in these projects agree on taxation as a source of
following market rules. All the actors involved in funding as long as the wealth of the country is
this process share three underlying values: nation- increased. Finally, the author explains how the
alism, competition in the market, and a common WDP, the CGG, and the BRI –initiated in 1999,
quest for economic growth. The book addresses 2000, and 2013, respectively– have followed the
three national initiatives: the western development SMG patterns described above.
program (WDP), the China Goes Global (CGG) Chapter 3 is dedicated to the initiative of the
strategy, and the Belt and Road Initiatives (BRI). western development program (1999). This pro-
Chapter 1 makes the case for three crucial gram was implemented in view of: (1) the eco-
observations revolving around the SMG. First- nomic backwardness of western China, (2) the
ly, it shows that China’s above-mentioned na- political objectives of Chinese leaders throughout
tional strategies have been proposed in response the 1990s and (3) major events that shaped the
to a number of economic challenges: shrinking global economy in the 1990s. First of all, western
exports, loss-making state-owned enterprises China has historically lagged behind the coastal
(SOEs), and industrial overcapacities. Secondly, it region in terms of industrialization, Gross Domes-
describes the SMG, which is a process led by mar- tic Product (GDP), and foreign direct investment
ket forces and integrated by interactions between (FDI). Second, during the 1990s, political leaders
political and economic actors. After national po- emphasized the western economic development
litical leaders propose overall strategies, private and the need for infrastructural development in
and state-owned enterprises as well as subna- the region. Finally, external events included the
tional entities interpret them in accordance with following: the Asian financial crisis and China’s
their own interests. Even though certain conflicts entry into the World Trade Organization, which
among actors may exist, what unites them is a encouraged the restructuration of Chinese’s state-
strong commitment to economic growth. Finally, owned enterprises.
the chapter contrasts the difference between the Chapter 4 takes into account the mobiliza-
SMG and other growth models: state capitalism, tion of outbound FDI through SOEs under the
liberal economy, coordinated markets, and devel- policy of CGG, which started in 2000. This policy
opmental state. was implemented in response to several economic
Chapter 2 focuses on interactions among the challenges in China (industrial overcapacity, sub-
main actors of the SMG, China’s available resourc- stantial nonperforming loans, and SOE losses), the
es for carrying out projects, and an empirical de- initiative of Chinese authorities, the mobilization
of subnational governments, and the restructur- the market in the process of development; the
ing of SOEs. After 2007, Chinese outbound FDI relationship between the accelerated process of
increased, especially to the US. globalization in China over the last 20 years and
Chapter 5 describes the Belt and Road Initi- liberal democracy; the centrality of political pow-
ative established in 2013. This initiative is mainly er in China; and the uniqueness of China’s model
driven by the consequences of the 2007-2008 cri- of development using the ambiguous mandates of
sis, the ideas of Chinese authorities, and China’s political authorities combined with the strong par-
search for development and security. Antecedents ticipation of local entities.
of the BRI were Chinese authorities’ proposal for a Overall, this book is well documented and also
Chinese Marshall Plan and the building of in road provides vivid and context-rich descriptions of the
and maritime infrastructure in Asia and Eurasia. political economy of Chinese companies and cit-
Even though this policy can be thought of as an ies. In my opinion, two major contributions of this
international initiative, it is also dedicated to do- book are: (1) the comparison in Chapter 2 of the
mestic development. Whereas BRI targets political Chinese model (SMG) with other developmental
leaders’ goals with respect to foreign and domestic models; and (2) the neat explanation in Chapters 6
policies, moreover, different local actors mobi- and 7 of the complementary relationship between
lize their resources to boost their exports or solve the micro agents (companies, fragmented bureau-
problems of overcapacity. cracies, and subnational entities) and the macro
Chapters 6 and 7 describe the local actors’ initiatives in promoting growth. Other important
interpretation of central government policies and issues are addressed in the book, but they could
the implementation of diverse strategies to take ad- have been explored in greater depth. For example,
vantage of China’s subnational territorial specifici- the possibility of China reforming new global in-
ties and market opportunities. Chapter 6 describes stitutions is omitted in Chapter 8; however, the US
the experience of three cities: Chongquin, Ningbo, and China are, today, the most powerful countries
and Wenzhou. The three cities have implemented in the world, and, thus, China’s role in shaping new
different strategies for development and they have institutions may be inevitable. Given the gravity of
also pursued different goals. According to the au- certain social and economic problems in today’s
thor, the development strategy in Chongquin is world, it is desirable that leading countries such
state capitalism, whereas Ningbo pursued a model as China participate in the construction of a new
developmental state. Wenzhou drew on the liberal international order, as highlighted by Tutan (2019-
market model. These cities also prioritized differ- 20), or in security issues, as has been singled out by
ent sectors and different degrees of public-private Chen (2020). Finally, another worldwide concern
partnerships: SOEs, state banks, and highly po- that the book could have taken into account is the
liticized local governments in Chongquin; strong cultural aspects of China influencing initiatives
local bureaucracies in Ningbo; and private compa- such as the BRI.
nies in Wenzhou. Chapter 7 outlines how private
companies as well as SOEs have always pursued References
commercial interests in adjusting to the process of Chen, Y. (2020). The Middle Eastern security dilemma
increasing capital mobility and exploring overseas and its impact on China’s Belt and Road Initiative.
expansion. Belt & Road Initiative Quarterly, 1 (2), 36-48.
Tutan, U. (2019-2020). Political-economy Finally, Chapter 8 revisits the book’s argureconfiguration in global power system: From
ments in light of a number of crucial issues: the the 18th century until today. Belt & Road Initiative
relevance of relationship between the state and Quarterly, 1 (1), 31-44.