New Thinking on Global Economic Governance with an Open View: Upgrade and Innovation

Experience from Chongqing

Hu FU

Party School of Chongqing Municipal Committee

Abstract: Increasingly close ties between China and the world economy is producing a "spillover effect": The influence of Chinese road and China’s leading role is worthy of reference for global economic governance. Chongqing particular is an exemplary case. As an inland and developing city, its industrial development experience not only has more universality and replicability, but also marks a new contribution to the development of traditional economic theory and global economic governance practices. Chongqing experience features transformation and upgrade by "reconstructing the structure of industries" to ｃｒｅａｔｅ comparative advantages, innovation-driven practices featuring growing endogenous capacity by “focusing on emerging industries” and open approach to fit into global value chains by “facilitating channels for outbound channels”, etc. The above practices can be used for reference for global economic governance and the development of economics theory: First, it changes "the transfer of production capacity" to "industrial chain remodeling"; secondly it replaces "spontaneous innovation" with "autonomous innovation"; and thirdly, it gives up "closed internal circulation" for "open and collaborative model".

Keywords: Global economic governance; Comparative advantage; Endogenous endowment; Industry transition