The Flawed Governance of the Laowaitan and the Coping Strategies
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This chapter first describes and analyzes the initially disappointing governance of the Laowaitan and the gloomy business prospect, the reasons of which include problematic business planning and regulation, controversial property management, high cost of business operation, traffic problem, and slow and ineffective communication between the local state and business owners. Afterward, the various local governance initiatives in response to such crisis are discussed, including mainly the corporatist-style intermediation between the local state and business owners and the promotional campaigns organized by the local state. The subtle relationship between the municipal and the district governments is discussed to reveal the multilayered urban governance system in China and its consequences.