Abstract: The issue of “returning to the state” has long received widespread attention in academia as it has been discussed in political science, theoretical economics, sociology, and other disciplines. However, such discussions are held within the domestic political, economic, and social arenas and centered on the role of the state within the framework of state-society-market. Yet, in the 21st century, domestic political economy can no longer stand alone beyond the international or even global political economy. A discussion of the issue of “returning to the state” at the domestic level merely concerns the internal functions of the state’s role, failing to well understanding the role of the state. To better understand the state, two perspectives, namely historical institutionalism, and the context of globalization and the global governance system, should be employed. Under the impact of trade protectionism and economic nationalism, “returning to the state” aims to promote internal institutional openness and globalization with institutional openness, thus better serving advancing the “smart globalization”.

Key words: returning to the state, understanding the state, globalization, global governance system, role of the state