“Double Surplus,” Capability Gaps and Innovation: A Macro- and a Micro-perspective on the Transformation of the Chinese Mode of Economic Development

In order to deploy the crucial levers in the transformation of the Chinese mode of economic development, it is necessary to identify the nature and reasons for the economy’s existing mode of operation. The paradox of China’s “double surplus” in the international balance of payments reflects the substantive issue of the appearance of a capability gap in Chinese economic development, which, interacting with dependence on FDI, hinders industry...