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At the beginning of 2009, as an important part of the package to cope with the international financial crisis, China implemented adjustment and revitalization plans in ten industries, including steel, non-ferrous metals, petrochemicals and automobiles. The adjustment and revitalization plan is a combination of short-term crisis response measures (maintaining growth) and medium- and long-term industrial development policies (structural adjustment). Among them, the "structural adjustment" policy is a continuation of the original industrial policy, which has the regulatory characteristics of strong direct intervention in the market, replacing the market mechanism with government choice and restricting competition, and is a typical selective industrial policy. This book provides a detailed analysis of the specific implementation of the adjustment and revitalization plan of the above ten key industries, the important problems faced and the effects of the policies. From the perspective of implementation, the adjustment of the revitalization plan has played an immediate effect in maintaining growth and expanding domestic demand, but it has also brought some adverse policy consequences, such as further stimulating capacity investment in steel and other industries, making the problem of overcapacity more prominent after the withdrawal of policies to maintain growth and expand domestic demand. Although the adjustment and revitalization plan has a limited role in adjusting the structure, and due to the excessive reliance on administrative means, there are many debatable points in the policy, which has brought many negative effects. Based on this, this book further reflects on the theoretical basis and policy orientation of China's industrial policy on the basis of re-understanding market mechanism and "market failure". The so-called "market failures" that exist in developing and transition countries are actually "government failures" or "institutional failures", and the implementation of direct intervention in market-based industrial policies will only exacerbate the problem. China should adjust the orientation of its industrial policy and shift to a functional industrial policy that "improves market mechanisms, maintains fair competition, enhances market functions, expands the scope of market roles, and supplements market deficiencies."（AI翻译）
