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China's economic performance over the past 30 years has been remarkable. The report is based on the strong conviction that China has the potential to become a modern, harmonious, and creative high income society by 2030. The report proposes six strategic directions for China's new development strategy: 1) rethinking the role of the state and the private sector to encourage increased competition in the economy; 2) encouraging innovation and adopting an open innovation system with links to global research and development networks; 3) looking to green development as a significant new growth opportunity; 4) promoting equality of opportunity and social protection for all; 5) strengthening the fiscal system and improving fiscal sustainability; and 6) ensuring that China, as an international stakeholder, continues its integration with global markets.

Unemployment is one of the most politically explosive issues in China and has gained further prominence as a result of the present global financial crisis. The novelty, urgency, and complexity of Chinese unemployment have compelled the government to experiment with policy initiatives that originate in the West. This book argues that although China is not a liberal democracy, it has turned to neo-liberal forms of governance to deal with unemployment, which now function alongside pre-existing Chinese modes of governance. This book examines the initiatives which represent China's attempt to institutionalize and humanize its approach to governance: these initiatives include training programmes; counselling; a web-based national labour-market information network; insurance; and using community (shequ) organizations as the base for new mechanisms of governance and informal job generation. Based on extensive original research including semi-structured interviews, the book discusses the ways in which the government combines the new techniques with old campaign-style policy techniques. The author argues that these multiple modes of governance make the state's power visible in the new Chinese labour market, and at the same time run the risk of policy incoherence or even failure.