The Political Economy of China’s Regulatory State: A Reappraisal

Abstract

The revolutionary Chinese institutional order has given way to a more liberal governance regime, which continues to evolve. Nevertheless, as changing patterns of micro-economic regulation illustrate, this has not been a linear and straightforward process. Rather, waves of decentralization and recentralization have unfolded in close succession, and liberalization and reregulation have often been pursued simultaneously. This apparently unique policy configuration seems to be impinging on governance in other parts of the world, given that the “emerging giant” responsible for the “product” is increasingly acting as an active global “rule maker,” as distinct from a merely passive “rule taker.” Yet, it is inadequately understood and is subject to insufficiently critical evaluation. A detailed and probing examination of the substantial academic literature on the subject reveals lingering ambiguities, noticeable gaps, a significant scope for further integration of the various threads, and an uneven picture pointing to potentially less favorable lessons than commonly drawn. * Adjunct Professor of Economics and Finance, Syracuse University (Hong Kong Program) and Adjunct Professor of Global Finance and Governance, Chinese University of Hong Kong. ** Professor of International Law, Hopkins-Nanjing Center, Paul H. Nitze School of Advanced International Studies (SAIS), Johns Hopkins University and Honorary Professor, Faculty of Law, University of Hong Kong. BYU Journal of Public Law [Vol. 27