China's unique economic model to provide stability: think-tank

"We have in the West a false perception of China being a very centralized government with authoritarian rule from the center. In fact, economically, and politically to some extent, it is a very devolved political economy and both the political futures of its leaders and the success of its economic experiments begin at a very local level in cities and states ... ," Bryson explained.

"So what we get is a crucible of experimentation the likes of which we do not see in the West," he said, adding "The West could learn a lot from that. It implies a certain amount of trust or preparedness on the part of the center."

Bryson points to the evidence of the five reports in the review.

China is seemingly paradoxical in achieving such growth with what appear to be weak institutions. However, the review argues China has engineered incentives for growth and productivity, albeit in an unorthodox fashion, which have delivered very substantial economic benefits.

China's impact on the global economy is so large that its development is hard to comprehend within the confines of models which have traditionally examined countries which are much smaller and, if larger, less open to the international economy.

Questions are frequently raised about the sustainability of China's growth trajectory. The review points to the importance of one-off hikes in productivity arising from various experiments China has undertaken with respect to capital restructuring and labor market reform.

But these one-off episodes appear to happen quite regularly, though China must achieve technological progress to make the productivity improvements needed to sustain its growth.

Bryson highlights the success of special economic zones, which from the early 1980s attracted foreign direct investment that allowed China to absorb a "very substantial amount of foreign investment."

"That was an experiment that was allowed by the center but given devolutionary responsibilities at local level," said Bryson.

There remain big challenges to the Chinese economy, including the speed at which the Chinese economy develops.