Since the beginning of economic reforms in China in 1978, the country has transformed from an impoverish economy into a ‘Factory of the World’ by following an export-led growth policy through its labor-intensive manufacturing. After that, the primary focused of the new factories were in the southeastern coastal provinces. However, this policy yielded positive outcomes like high annual growth and creation rates, but the negative consequences included the growing social and environmental issues. In 2012, regularities decided to transition to local consumption-led growth policy. The primary approach to accomplish the objective was to expand the existing manufacturing into the remote areas of the country. To accommodate this policy and to divert investor towards this policy, the government made significant reforms in the infrastructure of the hinterland. This case portrays the Western China’s largest municipality, Xi Yong Micro-electronics Industrial Park in Chongqing. The case traces the implementation of the government’s reforms at Xi Yong and asks students to determine that these infrastructure’s reforms would result in the desired outcomes for the government.
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