Strategic Planning of China’s Economic Development

Abstract

Strategic planning is one of the most important functions of strategic management. The state uses different strategic planning tools when developing and implementing strategies. China boasts one of the most effective best practices in strategizing, which can be expanded to other countries. This review covers the main approaches to strategic planning in China. The methodology relied on the theory of strategy and methodology of strategizing developed by Vladimir L. Kvint, Dr.Sc.(Econ.), foreign member of the Russian Academy of Sciences. The Chinese system of strategic planning takes into account the latest achievements of strategizing, including Dr. Kvint’s ideas. Its longterm, medium-term, and short-term development is compiled by the Academy of Sciences, research centers of the State Council, and the Committee for Development and Reform. Chinese regional development strategies are based on the modern global trends. However, the regions evaluate their own resources and development rates, as well as use estimates from various central and regional departments. The policy differs from region to region, depending on both objective factors, e.g., geography, and various subjective features. Large investments in R&D are a necessary part of innovation-driven strategy, but they not always ensure high innovation performance. In fact, Chinese R&D needs more attention to provide innovative development. The regional economic structure fails as a result of unbalanced regional development. Eastern China has better science and technology than the less developed Central, Western, and North-Eastern regions. However, the high population density and the close interregional collaboration compensate for the uneven development for the country, as well as provide a centralized management of economic growth and distributed research infrastructure. Conclusion. The experience of strategic planning in China can serve as a role model for other countries. The prolonged strategic interests, goals, and objectives increase the effectiveness and motivation. In addition, China is constantly developing the field of strategizing theory, methodology, and practice, thus increasing its scientific and innovative potential.