Professors Clash Over Proper Role of Government in Economy

Chinese economists have long struggled with the ideological gap that separates free-market advocates and supporters of government controls on market forces.

That struggle was evident Wednesday during a debate between two prominent Peking University economists firmly entrenched on opposite sides of the debate.

Professor Justin Yifu Lin, a Chinese government adviser and former chief economist at the World Bank, supports the industrial policies common in China — including subsidies, tax breaks and financial incentives — aimed at supporting specific industries considered crucial for the nation's economic growth.