This book focuses on the political economy behind innovation in China's new industrial sectors, particularly the effects of policies and government regulation in the absence of the rule of law. In its analysis, the book aims to elucidate the mechanisms that generate innovation from multiple perspectives while utilizing insights from political science and law. The analysis in this book focuses on the following three points. First, by examining Guizhou Province's Big-data industry promotion policy, "import substitution digitization" policy, and government intellectual property strategy, we seek to empirically clarify the extent to which Chinese government industrial policy has stimulated innovation. Next, we examine in detail the issues surrounding the "rule of law" in China regarding introducing anti-monopoly laws for digital platform companies and developing the intellectual property court system. Third, it focuses on the role played by local governments in industrial policy, including the impact of industrial guidance funds on the efficiency of the regional financial sector and the impact of local bond issuance on the effectiveness of resource allocation among regions.

Kai KAJITANI is a professor at the Graduate School of Economics at Kobe University. He received his Ph.D. in Economics from Kobe University in 2001, specializes in modern Chinese economics. His research interests also include development economics and comparative economics. He was a visiting scholar at the Center for Chinese Studies, University of California, Berkeley, from September 2005 to June 2006. He is the author of Political Economy of Reform in China, Springer (with Tomoki KAMO), Lectures on Chinese Economy, Chuou Koron Shinsha, 2018 (in Japanese), Chinese-Style Capitalism Evolving beyond Dual Trap: Empirical Studies on Ambiguous Institution (eds. with Hiroyuki KATO), Minerva Shobo, 2016, (in Japanese), The Fiscal and Financial System in Modern China: The Economics of Globalization and Central-Local Relations, Nagoya Daigaku Shuppankai, 2011, (in Japanese), and other works.

.- Introduction.

.-Import Substitution Digitalization Strategies?Examining China's Protectionism "Myth".

.- Big Data and the Guizhou Economy.-What Patent Data Reveal: The Current State of Innovation in China.

.- Strengthened Enforcement of Chinese Antimonopoly Law against Digital Platform Businesses:Political Economy Behind the Policy Changes from a Sanctuary through a Hunting Ground to the Normalized Supervision.