The Shanghai model can be characterized as having three key elements. The first is heavy-handed intervention by the state in most micro affairs of the economy. The second is that the city has the most blatant anti-rural bias in its policy orientation in the country. (And, according to the line of reasoning developed in this book, an anti-rural policy orientation is strongly anti-market.) The third is a biased liberalization that privileges foreign capitalists – namely, FDI – and restricts and discriminates against indigenous capitalism.
