The last two decades have seen a large part of China's integration in international financial markets. In my dissertation, I evaluate the economic policy related to China's globalization and how it interacts with the development of the Chinese economy. In Chapter 1, I show that China's export surge to the U.S. in the 2000s does not contribute to any growth of industrial wage or labor productivity on average, but drives dramatic industrialization and urbanization in China's local labor markets. In Chapter 2, I show how Chinese local cultural policies transmit the trade-inhibiting effect of historical conflicts over three generations. In Chapter 3, I study the impact of China's three largest state-owned banks ownership reform on credit allocation. My findings have important implications for policy design in China.