In this timely work, Scott Kennedy documents the rising influence
of business, both Chinese and foreign, on national public policy in
China.
China's shift to a market economy has made businesses more
sensitive to their bottom line and has seen the passage of
thousands of laws and regulations that directly affect firms'
success. Companies have become involved in a tug of war with the
government and with each other to gain national policy advantages,
often setting the agenda, providing alternative options, and
pressing for a favored outcome.
Kennedy's comparison of lobbying in the steel, consumer
electronics, and software industries shows that although companies
operate in a common political system, economic circumstances shape
the nature and outcome of lobbying. Factors such as private or
state ownership, size, industry concentration, and technological
sophistication all affect industry activism.
Based on over 300 in-depth interviews with company executives,
business association representatives, and government officials,
this study identifies a wide range of national economic policies
influenced by lobbying, including taxes, technical standards, and
intellectual property rights. These findings have significant
implications for how we think about Chinese politics and economics,
as well as government-business relations in general.
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