Hong Zhang, assistant professor in the Department of International Studies at the Hamilton Lugar School, has been published in Studies in Comparative International Development. Her article, “From Shielding to Pushing: Evolving Risk Management Regimes in China’s Infrastructure Export Industrial Policy,” examines how China’s approach to overseas infrastructure financing reflects deeper industrial policy dynamics.
Zhang identifies three phases in China’s risk management strategy for its international project contracting industry:
- “Shielding an infant industry” (late 1990s–mid-2000s): The state absorbed key risks to enable market entry, using tools like Letters of Guarantee and interest subsidies.
- “Neutralizing risks for rapid expansion” (mid-2000s–mid-2010s): Export credits and insurance mechanisms centralized financial risk within the state, fueling growth but creating moral hazards.
- “Pushing for market discipline” (since mid-2010s): Facing global scrutiny, China now encourages firms to adopt investment–construction–operation models and public-private partnerships, exposing them to greater commercial risk and incentivizing long-term competitiveness.
Rather than “de-risking,” Zhang argues, the state is “re-risking”—reallocating risk to firms and financiers as part of a broader strategy to promote industry maturity and global competitiveness.
This research builds on Zhang’s broader focus on China’s political economy and global development engagement. Students interested in topics such as industrial policy, infrastructure finance, and China’s role in the Global South can explore related courses and research opportunities in the Department of International Studies at the Hamilton Lugar School. Learn more about programs and faculty expertise at Hamilton Lugar School.
Read Zhang’s full article on SpringerLink: “From Shielding to Pushing: Evolving Risk Management Regimes in China’s Infrastructure Export Industrial Policy.”