Local competition drives rural vitalization

Rural vitalization is one of the key strategic imperatives of China's development paradigm. After eradicating absolute poverty, the country has shifted its focus to the implementation of the rural vitalization strategy. However, this is not merely an economic issue; it is a complex interplay of political and economic factors. The task therefore is to expedite this process through political-economic interaction.

At the heart of China's rural development lies a sophisticated mechanism of political-economic interaction. This dynamic, which I refer to as the "government plus market" model, is crucial to the development of county-level economies and the broader rural vitalization efforts. Local governments and market entities in a specific region maintain a frequently competitive relationship with their counterparts in other areas, spurring one another to propel growth.

Local governments' competition is based on critical metrics such as GDP, tax revenue and foreign investment, while businesses engage in market competition. These dual forces are intricately intertwined, propelling the local economies forward and, in turn, contribute to rural vitalization.