The Role of Local Governments in Driving High-Quality Growth in the People’s Republic of China

The People’s Republic of China has gone through a long period of remarkable growth, lifting millions of people out of poverty over the past 25 years. Yet, growth has come at a cost, resulting in environmental degradation, increasing socioeconomic and spatial inequalities, and building up of fiscal liabilities at the local government level. Under the High-Quality Growth agenda, the country aims to rebalance the economy in part by implementing tax reforms. This paper emphasizes the key roles that the central and local governments play in the implementation of that agenda.