China’s banking sector as a tool for implementing industrial policy strategies: an institutional aspect

Objective: to identify institutional mechanisms for the implementation of industrial policy strategies and measures of the People’s Republic of China by influencing the country’s banking sector.
Methods: qualitative methods, the method of historicism, comparison, generalization.
Results: institutional mechanisms were identified that facilitate the involvement of the Chinese banking sector in the implementation of strategies, programs and measures of China’s industrial policy. In developing industrial policy directions, the Chinese leadership mostly relies on measures to stimulate the development of strategically important industries through the provision of various benefits, subsidies, and easier access to bank loans. The institutional mechanisms of the Chinese government’s influence on commercial banks’ decisions on granting loans to priority industries are built in the logic of the Leninist-type party; it is the real center of strategic decision-making for the country’s socio-economic and political development. It implements its vision of development strategies through formal and informal institutions of party control over political and economic institutions.
Scientific novelty: the institutional mechanisms of influence of the PRC state and party institutions on the country’s banking sector are identified. The research shows that the system of regulation of the banking sector in the People’s Republic of China and the activities of its largest banks includes a mechanism of party influence, where bank managers simultaneously occupy key positions in party structures.
Practical significance: the findings are useful for teaching courses on institutional economics, regional studies and industrial policy, as well as for adapting the Chinese experience to the Russian economy in the face of sanctions.

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