Abstract
There is growing recognition that business lobbying is an integral part of the policymaking process in China at both the local and national levels. The existing research primarily focuses on the lobbying of large-sized enterprises or state-level business associations in China by taking advantage of Guanxi or the relationship to pursue interests, whereas it is less concerned about the lobbying practice of local business associations that represent private small and medium-sized enterprises. This chapter argues that local business associations established and supported by private enterprises have diversified lobbying targets, approaches and strategies. Based on 146 survey questionnaires completed by business associations at Zhejiang province and Jiangsu province, this article finds that local and private business associations in the areas of vibrant private economy show initiative in lobbying, employ diversified lobbying approaches and strategies to target the Party and government agencies, adopt legitimate channels, and produce a great influence on local policies. Compared with the singularity and passivity of state-level business associations, the private business associations show pluralistic and institutionalized in lobbying at local level. Limited political resources and representative interests of privately-owned enterprises produce the above lobbying characteristics of private business associations. It concludes by discussing how the organizational and institutionalized lobbying is being developed among private enterprises in local China.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
The large-sized enterprises are those that have annual sales of at least 500 million yuan per year.
- 2.
It is stipulated in Some Opinions of the General Office of the State Council about Accelerating and Promoting the Reform and Development of Trade Associations and Chambers of Commerce (No. 36 [2007] of the General Office of the State Council) that a trade association shall endeavor to carry out in-depth investigations into, and the study of, the relevant industry, actively reflect the claims of the industry and its members to the government and the departments thereof, put forward its opinions and suggestions for industrial development and legislation, and so on, actively participate in the study and formulation of the pertinent laws, regulations, macro control, and industrial policies, participate in the formulation and revision of the industrial standards, industrial development plans, industrial entry requirements, improve the industrial management, and promote industrial development.
- 3.
Private business associations in this chapter include both industry associations and chambers of commerce that were established by private enterprises.
- 4.
In both Zhejiang and Jiangsu provinces, private economy is highly vibrant. In 2011, private economy accounted for 61–62.2% and 53% of the total gross domestic product (GDP) in Zhejiang and Jiangsu provinces, respectively.
- 5.
Hillman and Hitt (1999) divide strategies into informational, constituency-building, and financial categories. Constituency strategy involved grass-roots efforts to attract popular support for elections and policy mobilization campaigns.
- 6.
An interview with the president of one business association, Wenzhou, July 2012.
- 7.
An interview with the president of one business association, Hangzhou, July 2012.
- 8.
It is stipulated in Some Opinions of the General Office of the State Council about Accelerating and Promoting the Reform and Development of Trade Associations and Chambers of Commerce (No. 36 [2007] of the General Office of the State Council) that a trade association shall endeavor to carry out in-depth investigations into, and study of, the relevant industry, actively reflect the claims of the industry and its members to the government and the departments thereof; put forward its opinions and suggestions for industrial development and legislation, and so on; actively participate in the study and formulation of the pertinent laws, regulations, macro control, and industrial policies; participate in the formulation and revision of the industrial standards, industrial development plans, and industrial entry requirements; and improve the industrial management and promote the industrial development.
- 9.
“One business association in one industry” refers to the rule that there shall be no more than one business association with the same or a similar scope of activity in the same administrative district at a county level and above. It is stipulated in Article 13 of Regulation on Registration and Administration of Social Organizations issued in 1998 that “If in the same administrative area there is already a social organization active in the same [xiang tong] or similar [xiang si] area of work, there is no need for a new organization to be established.” During the process of implementation, this rule changed into “one business association in one industry in the same administrative district.” Although Regulation on the Administration of the Registration of Social Organizations issued in 2016 lifted the restrictions of “one business association in one industry,” we carried out our research in 2012–2013, during which period China still adhered to the principle of “one business association in one industry.”
References
Brødsgaard, K.E. 2012. Politics and business group formation in China: The Party in control? The China Quarterly 211: 624–648.
Cheng, H., W. Huang, and Y. Wang. 2003. Research into China’s social interest groups. Strategy and Management 4: 63–64.
Deng, G., and S. Kennedy. 2010. Big business and industry association lobbying in China: The paradox of contrasting styles. The China Journal 63: 101–125.
Dickson, B.J. 2003. Red Capitalists in China: The Party, Private Entrepreneurs, and Prospects for Political Change. Cambridge: Cambridge University Press.
Foster, K.W. 2002. Embedded within state agencies: Business associations in Yantai. The China Journal 47: 41–65.
Gao, Y. 2008. Institutional environment and MNEs’ strategy in transitional China. Managing Global Transitions 6(1): 5–21.
Gao, Y., and Z. Tian. 2006. How firms influence the government policy decision-making in China. Singapore Management Review 28(1): 73–85.
Hillman, A.J., and M.A. Hitt. 1999. Corporate political strategy formulation: A model of approach, participation, and strategy decisions. Academy of Management Review 24(4): 825–842.
Huang, D. 2013. How do entrepreneurs affect the local policy process: A case study and typology construction from the state-centered perspective. Sociological Studies 5: 172–196.
Ji, Y. 2015. The inner differentiation of business associations: How social foundation influences the organizational cohesion. The Journal of Public Management 1: 107–116.
Ji, Y., and X. Fan. 2017. Do deep pockets have more political influence? The size of private enterprises and their strategy selection in resolving administrative disputes. Sociological Studies 3: 193–215.
Jiang, H., and B. He. 2012. Contrastive research into policy-making participation of business associations: Nanjing and Wenzhou. Journal of Zhejiang Provincial Party School 1: 27–36.
Jiang, H., and J. Zhang. 2009. Analysis of the representativeness of business associations and its influence factors: A case study of Wenzhou-based business associations. Journal of Public Management 4: 78–88.
Jiang, H., J. Zhang, and Y. Zhou. 2011. Interests alignment: An analytical framework of the state and society relations in transitional China. Sociological Studies 3: 136–145.
Kennedy, S. 2005. The Business of Lobbying in China. Cambridge: Harvard University Press.
Kennedy, S. 2009. Comparing formal and informal lobbying practices in China: The capital’s ambivalent embrace of capitalists. China Information 23(2): 195–222.
Kennedy, S., and G. Deng. 2012. Analysis of the factors shaping the lobbying behavior of industry associations. Comparative Economic & Social Systems 4: 147–156.
Luo, Y. 2001. Toward a cooperative view of MNC-host government relations: Building blocks and performance implications. Journal of International Business Studies 32(3): 401–419.
Nevitt, C.E. 1996. Private business associations in China: Evidence of civil society or local state power? The China Journal 36: 25–43.
Pearson, M.M. 1997. China’s New Business Elite: The Political Consequences of Economic Reform. California: University of California Press.
Regina Chen, Y.R. 2004. Effective public affairs in China: MNC-government bargaining power and corporate strategies for influencing foreign business policy formulation. Journal of Communication Management 8(4): 395–413.
Regina Chen, Y.R. 2007. The strategic management of government affairs in China: How multinational corporations in China interact with the Chinese government. Journal of Public Relations Research 19(3): 283–306.
Saich, T. 2000. Negotiating the state: The development of social organizations in China. The China Quarterly 161: 124–141.
Sanyal, R.N., and T. Guvenli. 2000. Relations between multinational firms and host governments: The experience of American-owned firms in China. International Business Review 9(1): 119–134.
Tian, Z., and X. Deng. 2007. The determinants of corporate political strategy in Chinese transition. Journal of Public Affairs 7(4): 341–356.
Tsai, K.S. 2007. Capitalism without Democracy: The Private Sector in Contemporary China. Ithaca, NY: Cornell University Press.
Unger, J. 1996. Bridges: Private business, the Chinese government and the rise of new associations. The China Journal 147: 795–819.
Wang, S. 2006. Public policy agenda-setting patterns in China. Social Science in China 5: 86–99.
Wank, D.L. 1995. Private business, bureaucracy, and political alliance in a Chinese city. The Australian Journal of Chinese Affairs 35(33): 55–71.
White, G. 1993. Prospects for civil society in China: A case study of Xiaoshan city. The Australian Journal of Chinese Affairs 29: 63–87.
White, G., J.A. Howell, and X. Shang. 1996. In Search of Civil Society: Market Reform and Social Change in Contemporary China. Oxford: Oxford University Press.
Wu, W. 2008. Influence of political relationship building on the business activity of firms in China. Singapore Management Review 30(2): 73–94.
Yu, H. 2002. Business Associations and Their Development in China: Theory and Cases. Beijing: Economy and Management Publishing House.
Yu, J., K. Yashima, and Y. Shen. 2014. Autonomy or privilege? Lobbying intensity of local business associations in China. Journal of Chinese Political Science 19(3): 315–333.
Yu, J., J. Zhou, and H. Jiang. 2012. A Path for Chinese Civil Society: A Case Study on Industrial Associations in Wenzhou, China. Lanham, MD: The Roman & Littlefield.
Zhou, J. 2009. Policy advocacy of industry associations: Actuality, problems and mechanism building. Chinese Public Administration 9: 91–96.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Shen, Y., Yu, J. (2019). Lobbying of Private Business Associations in Local China: Targets, Strategies, and Influence. In: Yu, J., Guo, S. (eds) The Palgrave Handbook of Local Governance in Contemporary China. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-13-2799-5_18
Download citation
DOI: https://doi.org/10.1007/978-981-13-2799-5_18
Published:
Publisher Name: Palgrave Macmillan, Singapore
Print ISBN: 978-981-13-2798-8
Online ISBN: 978-981-13-2799-5
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)