004 : Neo-Liberal Approach in China’s Model of Development: Challenges and Opportunities

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The view of economic development provides the argument that promoting industrialization is a good strategy so that Newly Industrialization Countries (NICs) can increase per capita income so that they do not depend on other countries. But not all countries can succeed with that strategy. Examples of countries that succeed are countries in East Asia, while countries in sub-Saharan Africa and several countries in Latin America are less successful in using that strategy.

China's robust economic power at this time is influenced by economic reforms carried out in 1978. In that year, China adopted an open-door policy, which meant that China would open itself to the outside world.

These efforts were made by China to increase its economic growth. In addition to conducting economic interactions with foreign investors, China also instills neoliberalism in its economic system, such as privatization and joining the WTO.

However, neoliberalism carried out by China is slightly different from other countries that use the Washington Consensus as the guide. China still uses the ideology of socialism in its government structure; it causes the Central government of China to still doing an intervention in the economic process even there are more private companies than public companies after China doing economic reformation. That is why China is doing so-called state-neoliberalism.

In line with the changing world development, China faces challenges that must be met, namely economic reforms that are always developing, the impact of globalization, environmental problems, and geopolitical shifts. Therefore, China must utilize the opportunities that exist to face these challenges, such as by building cooperation with the U.S., increasingly opening trade and investment channels to other countries, and paying attention to lending projects to other countries to strengthen bilateral relations with partner countries.