The State Strikes Back: the end of economic reform in China? by Nicholas R. Lardy.

The strongest section of the book is Lardy's discussion of the disparities between state- and privately - owned firms and their roles in China's current growth woes. I The State Strikes Back i suggests that the dilemma between market-driven reform and political legitimacy is a false one for China, and that further economic reform may in fact be the only way for the Chinese state to sustain its domestic and global credibility. A Chinese government representative might look at that description and conclude - contrary to Lardy - that the government is on the right path by trying to create ever-larger and more consolidated state-owned industry champions. [Extracted from the article]