China’s New Economic Model

China's economy has grown by almost 10% annually for 30 years, lifting hundreds of millions of Chinese out of poverty. But, as Joseph Stiglitz explains, if China is to sustain rapid economic growth, the time has come to shift from exports and high savings to an expansion of domestic consumption and investment.

China’s success since it began its transition to a market economy has been based on adaptable strategies and policies: as each set of problems are solved, new problems arise, for which new policies and strategies must be devised. This process includes social innovation . China recognized that it could not simply transfer economic institutions that had worked in other countries; at the least, what succeeded elsewhere had to be adapted to the unique problems confronting China.