The Economist notes –
“IT IS not quite
Keynes-Hayek, but Lin-Zhang is a marvel in its own right. …Justin Lin, a former
chief economist of the World Bank, who leans to Keynesian faith in public
spending, has squared off against Zhang Weiying, a self-professed Hayekian who
doubts bureaucrats can ever beat the free market.
Like their
predecessors, Mr Lin and Mr Zhang have been sparring over two decades. And
whereas Keynes and Hayek were down the road from each other (respectively, in
Cambridge and London), the Chinese professors are now only a few paces apart,
both at the prestigious Peking University. Their latest debate has been one of
their fiercest, becoming a talking point for the domestic press, other
academics and even officials.
At issue is one of
the big questions facing China’s economy: does industrial policy work? The idea
that the government can champion specific industries is central to Chinese
policy. Officials have long favoured different sectors, from textiles in the
1980s to renewable energy this decade. China’s growth record would seem to
vindicate this. But critics disagree, arguing that favoured companies produce
little innovation.”
--
Meanwhile, Xi Jinping is consolidating his power
“China’s leader, Xi
Jinping, already general secretary of the ruling Communist Party, president,
and commander of the country’s military forces has been given another new title
– “core” of the party leadership”