The core of Fulong Wu and Fangzhu Zhang’s new book is the thesis of state entrepreneurialism, which is significant for both China studies and urban studies. The authors explore this thesis through both in-depth theoretical analysis and comprehensive empirical studies. The introduction chapter situates the concept of state entrepreneurialism within a governance framework and the context of urban development in China. Besides the introduction and conclusion chapters, there are seven chapters dedicated to explaining the theoretical framework, historical background, key mechanisms and major applications of state entrepreneurialism.
Chapter one provides a comprehensive theoretical overview of the literature on governance. Moving beyond theories of neoliberalism and urban entrepreneurialism, this chapter introduces key perspectives on the evolving nature of governance in China, including neoliberalism, GDP tournament, land finance, the shareholder state, market in state and the governmentality of authoritarianism. It then further explains governance as a mode of regulation that maintains “structural coherence,” which is essential for understanding governance within the context of China’s changing political economy. The theoretical discussion on governance leads to an exploration of state entrepreneurialism, emphasizing the role of the state in engaging with the market, particularly in the Chinese political economy.
Chapter two explains the process and mechanisms through which state entrepreneurialism emerges as a governance mode from China’s evolving political economy. It offers a historical, grounded and generative understanding of state entrepreneurialism. The historical review shows that state entrepreneurialism is a phenomenon rooted in historical materialism, often described as a “grounded project.” It covers all key periods of the PRC’s economic development, including the centrally planned economy, the initial market-oriented reforms, the deepened market reform and export-driven industrialization, the world-factory model, and the final stage of state entrepreneurialism, when local authorities began to prioritize using their own financial tools to raise capital. Based on this review, chapter two summarizes the main features of state entrepreneurialism, viewed as a strategic role of the state in urban governance. Its role is further explained as 1) the state operating both within and through the market; and 2) a reflection of territorial logic. The concept of state entrepreneurialism provides a comprehensive governance framework for planning and development. Three policy priorities – urban regeneration, suburban development and rural revitalization – are highlighted as key elements of how urban development has been managed under this model. The chapter also presents examples of state entrepreneurialism in action, exemplified by mega-urban projects across various Chinese cities. These projects showcase how state entrepreneurialism as a governance model combines central planning with market mechanisms, with the state playing a crucial role in governance paradigms that integrate state, capital accumulation and authoritarian private governance.
Chapters three and four examine two key mechanisms of state entrepreneurialism: planning and financialization, respectively. Chapter three begins with theoretical discussions on neoliberal and post-political planning in Western market economies, highlighting the impact of market hegemony on planning as a form of state political intervention. It points out the limitations of the post-political perspective in explaining China’s state-centred system. The chapter provides a brief history of city planning in China and notes that city planning was essentially a technical activity within local governments. It also mentions that city planning has been strengthened alongside increased market development. During the era of market reform, planning became more crucial, particularly in the form of planning for growth. Since 2018, multiple plans have been consolidated into a single system called the “spatial plan for national territory.” Two examples are presented to illustrate this significant change: Shanghai’s Zhangjiang High-tech Park and the development of greenway systems in Chinese cities. The examination of planning emphasizes the importance of the Chinese political economy in understanding state entrepreneurialism. Chapter four examines the mechanisms of financialization of large-scale urban development projects and cities, and how those mechanisms influence urban governance. This chapter offers a comprehensive review of the process of financialization in China, through which the Chinese state promotes a financial approach in urban development. Urban housing commodification and land financialization, along with infrastructure development and public finance, are analysed as three key aspects of the financial approach. The chapter argues that “financializing Chinese cities” reveals a state-centred approach to urban development financialization, and financialization is a state strategy and by-product of state operation.
The following three chapters further explore state entrepreneurialism through three cases of governance issues. Chapter five investigates China’s urban development by examining evolving concepts of urban regeneration and changing practices of urban growth. Urban village redevelopment – a key issue in Chinese urban development – is analysed in detail within the framework of state entrepreneurialism, alongside discussions on small-scale redevelopment projects. Chapter six explores an innovative governance model as a hybrid case under state entrepreneurialism. Through a detailed analysis of how innovation models in China have shifted from the 1950s to the present, this chapter shows that China’s approach to innovation has evolved from an initial state-funded, mission-oriented system to a greater reliance on market mechanisms and actors. The case of a high-tech park illustrates how the state’s strategies for innovation and urban development influence innovation and spatial governance. This chapter highlights the limitations of entrepreneurial governance in scenarios characterized by heavy investment and highly uncertain financial returns. Chapter seven presents another important case – environmental governance. Alongside an ecological approach focused on green infrastructure, the strategies of ecological civilization adopted by the state play a vital role in China’s environmental governance.
The conclusion chapter highlights the dialectical relationship between the state and capital within state entrepreneurialism. In particular, it emphasizes the significant role of the state in governing urban development in China.
This book offers thought-provoking theoretical dialogues by analysing state entrepreneurialism within a rich theoretical framework that addresses both Western and Chinese contexts. It also provides a comprehensive review of the historical development of governance mechanisms amid China’s urbanization. Wu and Zhang highlight key governing mechanisms in China’s urban development, supported by significant case studies of governance issues in various locations in China. Their book is essential reading for scholars of urban studies and governance in China, and it serves as a crucial resource for understanding the role of the state, China’s political economy, and the interplay among the state, market, and society. The open-access format of the book will help this important work reach a broader audience.
