India, Aug. 30 -- As the world grapples with economic chaos and uncertainty owing to trade and technology disputes kicked off by the US, the International Monetary Fund has recently shared an upbeat view on the Chinese economy. It has predicted 4.8% growth this year compared with a previous forecast for 4%. Amidst the overall gloomy global growth situation, China seems to be dodging the cyclical headwinds well. But it is clear that without significant government intervention, maintaining a steady upward trajectory would be difficult. In this context, understanding China's political economy becomes more urgent than ever.

While the Chinese government, since the Covid crisis, refrained from announcing an aggravated stimulus package, its cal...