• April 2013
Scott Kennedy and He Fan, The United States, China, and Global Governance: A New Agenda for a New Era (Bloomington, Indiana and Beijing, China: RCCPB & CASS, April 2013). Full Text (全文）
The RCCPB is proud to announce the release of a report offering policy recommendations on how to move forward global governance in the 21s century. Entitled, The United States, China, and Global Governance: A New Agenda for a New Era (中美两国与全球治理：新时代的新议题),the report is co-authored by the RCCPB’s Scott Kennedy and He Fan of the Institute of World Economics and Politics in the Chinese Academy of Social Sciences. The report holds that there is a significant global governance deficit, and that both China and United States need to be more responsible stakeholders of the international system. Kennedy and Fan offer specific recommendations related to strengthening global governance in general and with regard to international trade, cross-border investment, and global finance.
The report, available in English and Chinese, caps the RCCPB’s three-year Initiative on China and Global Governance, which has included 30 working papers, 4 international conferences, multiple journal articles, 3 books, and several policy dialogues. CASS’s Institute of World Economics and Politics has long played a leading role in China in conducting policy-related research on international trade, finance, and other areas of international political economy. It has just opened a new center on the study of global governance.
In April 2013, Kennedy and He presented their report at four events in New York City, Washington D.C., and Beijing. To view the international media coverage of these events, please visit our news page (click here).
• September 2012
Scott Kennedy and Shuaihua Cheng, eds., From Rule Takers to Rule Makers: The Growing Role of Chinese in Global Governance (Bloomington, Indiana, and Geneva Switzerland: RCCPB & ICTSD, September 2012). Full Text (全文)
The Research Center for Chinese Politics & Business (RCCPB) and the International Centre for Trade and Sustainable Development (ICTSD) are proud to jointly issue a study that analyzes the policy implications of growing Chinese involvement in global governance. Edited by the RCCPB’s Scott Kennedy and the ICTSD’s Shuaihua Cheng, From Rule Takers to Rule Makers presents 12 commentaries on the growing participation of Chinese in several arenas: international trade, finance, climate change, labor, public health, and foreign aid. The short chapters (2,500-3,000) words distill research first presented as working papers in the RCCPB’s Initiative on China and Global Governance.
Some important conclusions:
- Many Chinese, both state and non-state actors, participate in global governance. Hence, we should talk of “Chinese” participation, plural, not “China’s” participation, singular.
- Chinese are moving up the learning curve in many areas of global governance, though most rapidly in areas directly related to international trade.
- Chinese participation has a decidedly “statist” feel, particularly at the multilateral level. Government actors are generally more active than non-state actors, and Chinese are more involved in state-based institutions than in non-state private governance institutions.
- In some areas they are stubborn defenders of the status quo, and in others they promote limited reforms of the international system. In no area are Chinese radical anti-status quo participants.
- Chinese influence still depends heavily on China’s “hard power” and less on “soft power.” Chinese are more influential, but not yet dominant leaders in any area of global governance.
- Greater Chinese participation has in many areas led to the advancement of addressing global problems, but by simply being new, major participants so quickly, their involvement also has complicated both negotiations and implementation of agreements.
- Chinese influence will likely continue to grow simply as Chinese gain more experience and become more deeply integrated into the world economy and society, but Chinese influence that contributes to addressing global problems may continue to be limited by two sets of factors: first, by domestic factors that hinder policy transparency, coordination across government departments, and activism and independence on non-state actors, both companies and non-governmental organizations; and second, by international factors that shape how the world’s current leading powers and international institutions engage Chinese participants.
The full complement of working papers from the initiative are on the RCCPB’s website. A scholarly book on this subject will be published in Routledge Press’s Series on Global Institutions, and available in March 2013.
The Initiative on China and Global Governance and publication of this book are generously supported by the Henry Luce Foundation and Indiana University.
> Working Paper Series
• October 2014
Deng Xinming, “Chinese Consumers’ Ethical Consumption: Between Intent and Behavior," Working Paper #36, October 2014. Full Text (全文)
Abstract: Consumers' ethical shopping behavior isvery complicated. There is an apparent gap between intent and actual behavior. Through two approaches the paper analyzes the factors preventing consumers from translating their stated ethical intentions into actual ethical buying behavior. The first type of data draws on in-depth interviews and identifies 6 personal consumerand 5 shopping situational factors impeding the transformation from consumer’s stated ethical intentions into actual ethical behavior. The second dataset is based on questionnaires from 1,000 consumers to test the adaptability of those personal and situational factors identified in the interview data, andinvestigates the moderating effects of these factors on the relationship between intentions and behavior. The findings show that among those personal factors, moral maturity, economic rationality, buying inertia, cynicism, and ethical cognitive efforts all have a significant moderating role on the relationship between ethical intentions and action. All of the situational factors moderate the relationship between intention and action. Finally, the paper develops an overall theoretic framework for consumers’ ethical decision-making process, which can provide insight into how to motivate consumers to support a firm’s ethical behavior and to transfer this kind of support into truly positive purchasing behavior.
• August 2014
Dilip K. Das, “China’s Outbound Foreign Direct Investment: Sources of Growth and Transformation,” Indiana University Research Center for Chinese Politics & Business, Working Paper #35, August 2014. Full Text (全文)
Abstract: The Chinese economy is in the middle of a transformation from an economy that was a recipient of the second largest amount of foreign direction investment (FDI) in the world after the US to one that has started making enormous amounts of outward FDI. In 2012 it was the third largest source of OFDI after the US and Japan. This article traces the path of China emerging into a large OFDI-making economy. By some measures China’s OFDI has grown larger than some of the traditional OFDI-making economies. It examines China’s OFDI trajectory and its shifting pattern, its points of inflection, and the domestic and global drivers of this transformation. Although it started in a subdued manner, commercially and geographically China’s OFDI has reached significant levels. During the new millennium, since the adoption of the “go global” strategy by the government, both qualitative and quantitative changes in
OFDI flows have become apparent. There are some specific factors that helped China in its rapid OFDI spurt, such as China’s conscious attempts to integrate regionally and globally, its participation in global value chains as well as the global financial crisis. The government has played a decisive role in the expansion of Chinese OFDI. An overwhelming proportion of large mergers and acquisitions have been made by state-owned enterprises (SOE). Although initially the involvement of private sector MNCs and business enterprises in OFDI was restrained, during recent years they have picked up enormous momentum. As Chinese companies are relatively new to ODFI, they suffer from some limitations. There can be few hastily contrived remedies to alleviate these systemic weaknesses.
• January 2014
Jui-Chien Cheng, “Challenges Surrounding Directors’ Duty of Care in Chinese
Corporate Law,” Indiana University Research Center for Chinese Politics & Business, Working Paper #34, January 2014. Full Text (全文)
Abstract: The concept of fiduciary duty, derived from common law, was introduced to the Company Law of the People’s Republic of China in 2005. Even so, few fiduciary lawsuits have been brought to the courts of China since 2005. There are three main reasons for the rarity of fiduciary lawsuits. First, Chinese fiduciary law has neither clear content nor a clear standard of review. Second, the traditionally harmonious culture of China discourages filing lawsuits against directors. Third, Chinese law imposes severe restrictions on derivative lawsuits. This paper presents a detailed description of the regulation of the duty of care in China. The difficulties facing the fiduciary duty in China are examined in light of the history and status quo of the duty of care in Delaware, the outcome of the leading Chinese case regarding the duty of care, the severe restrictions on derivative lawsuits in China, and the influence of China’s social and cultural values.
• June 2013
Rory Truex, “The Returns to Office in a ‘Rubber Stamp’ Parliament,” Indiana University Research Center for Chinese Politics & Business, Working Paper #33, June 2013. Full Text (全文)
Abstract: Are there returns to office in an authoritarian parliament? A new dataset shows that over 500 deputies to China's National People's Congress are CEOs of various companies. Entropy balancing is used to construct a weighted portfolio of Chinese companies that matches companies with NPC representation on relevant financial characteristics prior to the 11th Congress (2008-2012). The weighted fixed effect analysis suggests that a seat in the NPC is worth an additional 2.01to 2.04 percentage points in returns and a 6.92 to 7.46 percentage point boost in operating profit margin in a given year. Additional evidence reveals that these rents stem primarily from the "reputation boost" of the position, and not necessarily formal policy influence. These findings cofirm the intuitions of several prominent theories but suggest the need to further probe the nature of rent distribution and representation in authoritarian systems.
• November 2012
An Baisheng (安佰生), “The Global Governance of Standardization: The Challenges of Convergence” (标准化的全球治理: 收敛的挑战), Indiana University Research Center for Chinese Politics & Business, Working Paper #32, November 2012. Full Text (全文)
Abstract: The current standardization regime requires rigid convergence towards international standards. This model is confronted with various limits and cannot fully attain its objectives. Standardization policy requires a balance between equity and efficiency and has important domestic public policy implications. At the same time, it exercises great influence on international competitive strategies. The multiple objectives, explicit or implicit, in the domestic policies for standards have complicated standards governance at the global level. In recent years, the public-private partnerships and multilevel governance have been among the salient characteristics of global governance of technical standards. These characteristics reflect a new model for the governance of standards, namely a model based on regulatory cooperation and a more reflexive approach.
Bruce Reynolds and Susan K. Sell, “China’s Role in Global Governance – Foreign Exchange and Intellectual Property: A Comparison”. Indiana University Research Center for Chinese Politics & Business, Working Paper #31, November 2012. Full Text (全文)
Abstract: This paper compares Chinese participation in global governance related to intellectual property (IP) and exchange rate policy (ER). Two conclusions hold for both areas. First, China’s behavior within each has demonstrated a recursive dynamic between growing domestic interest articulation, experience/capacity, relative power, and foreign pressure: the first three have caused foreign pressure to be less effective in inducing Chinese policy change. Second, China’s behavior has become more assertive and effective in promoting its preferred regimes within GGOs. Recent successes in ER (an advantageous use of pegging in 2008-10) and in the World Trade Organization (prevailing in key elements of a landmark IP enforcement dispute) are just two examples. We expect China to continue to press for reformist (but not radical) rule adjustments in its favor. But we also find notable differences between the two governance areas. In particular, in IP one would have to applaud the success of the WTO framework in mediating conflict. But when it comes to disputes over what exchange rate mechanism (ERM) China should adopt, the IMF, despite its deep expertise and authority, has played a peripheral role, and other fora (OECD, G20, etc.) are even less important. This may flow from the striking differences in the nature of the two governance regimes.
• September 2012
Katherine Morton, “Learning by Doing: China’s Role in the Global Governance of Food Security,” Indiana University Research Center for Chinese Politics & Business, Working Paper #30, September 2012. Full Text (全文)
Abstract: China, which faces severe resource and environmental constraints, has now reached a critical juncture in its capacity to maintain self-sufficiency in basic foods. Despite abundant grain reserves, an estimated 10 percent of the population is still undernourished. China’s food security concerns have a significant impact on the broader effort to eliminate world hunger and ensure a reliable supply and fair distribution of food on a global scale. In recent years, Beijing has encouraged the outsourcing of agricultural production overseas, expanded agricultural development projects, and increased its role in providing emergency food relief. Now an active, albeit reluctant, stakeholder in the global governance of food security, the question arises of how China’s emerging role is likely to shape the future direction of the international food regime. This paper outlines the major trends in food security governance at the global level, address the vexed question of what constitutes food security in the Chinese context, and assess the extent to which China’s current involvement in agricultural investments, food aid, and global policymaking is aligned with international norms and practices.
• June 2012
Shuaihua Cheng, Ting Fang, and Hui-Ting Lien, "China's International Aid Policy and Its Implications for Global Governance" (中国的对外援助政策及其对全球治理的启), Indiana University Research Center for Chinese Politics & Business, Working Paper #29, June 2012. Full Text (全文)
Abstract: The purpose of this paper is to describe and analyze the policies of China in the fields of development aid and their implications for global governance. The paper takes a comprehensive perspective on the various facets of such policies from the institutional arrangement, to key features of China's aid policies in the different stages of China's domestic reform and in the relations with recipient countries from different regions. A comparative perspective is undertaken, both vertically, through time, to have a good understanding of the evolution of China's strategies and practices in the development aid, and horizontally, with respect to the reflections among traditional donors at the international level. The paper starts with an analysis of domestic political economy of China's foreign aid policy with an emphasis of institutional arrangement and role of State Owned Enterprises (SOEs). It will then examine some new trends of international development policies of traditional donors and compare them with China's strategies and practices. The authors then draw some key features of China's aid policy by looking into its practices in three different regions (Africa, Asia and Latin America). The paper concludes with a summary and analysis of implications of China's foreign aid policy for global governance on international development.
Xu Jiajun, "The Anatomy of China's Influence on the International Development Finance System" (解析中国对于国际发展援助体系的影响), Indiana University Research Center for Chinese Politics & Business, Working Paper #28, June 2012. Full Text (全文)
Abstract:The entry of China as an emerging economic power into the development financing scene has raised the question of its impact on international aid architecture. The paper argues that this question cannot be fully understood unless we realize that the origin and on-going evolution of the current rules in international aid regime represent a process of political contestation both on the international level and on the domestic level. They are the outcome of conscious aid policy coordination among DAC donors to avoid crass competition and promote burden sharing. However, undue coordination dominated by hegemonic ideas of what is best aid practice may stifle alternative notions of what development is and how official flows can promote the development. After uncovering the political dynamics of existing rules and standards, the author collected first-hand data through in-depth interview in Beijing to discover that China has no incentives to participate in the current DAC dominated aid policy coordination due to domestic and international political considerations. Furthermore, China has taken a pragmatic approach to international standards and rules on development assistance. On the one hand, China is willing to draw lessons from the international practices to reform its domestic aid governance structure. On the other hand, China has deliberately distinguished itself from the DAC approach by criticizing the appropriateness of the current standards and rules and highlighting its distinctive "South-South Cooperation" approach. In addition, the author took a step further to uncover how domestic bureaucratic politics creates ambiguous attitude towards international rules due to the vested bureaucratic interests. It concludes that China has enhanced the momentum of creating a space for alternative development ideas and policy options, although such impact is not an outcome of China's conscious efforts but an unintentional impact due to the competition China brings to DAC donors and the alternatives it provides to recipient countries.
• May 2012
Gong Xiangqian, "Chinese NGOs and Global Health Governance: From the Perspective of International Law" (中国非政府组织与全球卫生治理:国际法的视角), Indiana University Research Center for Chinese Politics & Business, Working Paper #27, May 2012. Full Text (全文)
Abstract: Since China adheres to the government-led mode at home and Westphalian principle of state sovereignty abroad, Chinese NGOs play an auxiliary and limited role in global health governance. With the process of global civil society movement, and its internal governance reform, China is increasingly propelled by post-Westphalia international law to accept passively or advance actively its NGOs' participation in global health governance, among which GONGOs play a larger role than grassroots NGOs. In fact, Chinese NGOs have made huge progress in urging the government to implement international law on public health. We can see the beginning of how Chinese NGOs are learning to participate in international lawmaking and dispute settlement on public health.
Huang Yanzhong, "China and Global Health Governance" (中国和全球卫生治理), Indiana University Research Center for Chinese Politics & Business, Working Paper #26, May 2012. Full Text (全文)
Abstract: This paper examines the impact of China's participation in global health governance (GHG) by addressing two interrelated questions. First, how has China's involvement had an impact on GHG? Second, to what extent has China's GHG involvement resulted in changes in its domestic health governance? It finds that in the areas of health-related development assistance, global disease prevention and control, and global health rule making, China is making a difference in global health governance processes and outcomes. Meanwhile, despite the opaque and exclusive authoritarian structure in China, global health players, norms, and processes have a significant role to play in the country's domestic health governance, including health agenda setting, health policy formulation and implementation. The magnitude and significance of China's participation cannot simply be accommodated by the existing analytical framework. To be sure, China's engagement in GHG thus far is still narrow and limited, and not always constructive. But these constraints and limits are not static as the domestic and international context for China's engagement is changing. As China becomes more sensitive to international norms, pressures, and influences, it is anticipated to play a much bigger role in global health governance.
• April 2012
Ren Xiao, "A Reform-Minded Status Quo Power? China, the G20, and Changes in the International Monetary System" (一个希望改革的现状大国？中国、二十国集团与国际货币体系变革), Indiana University Research Center for Chinese Politics & Business, Working Paper #25, April 2012. Full Text (全文)
Abstract: This paper analyzes the case of China in the G20 process and examines China's position and policies on relevant issues, including the international monetary system (IMS) reform, reform of the IFIs, international financial regulation, the future of the dollar, and internationalization of the Renminbi. My findings demonstrate that China has actively participated in the G20's deliberations and actions, put forward its suggestions, sought expanded share and voting power in the IFIs in correspondence with its rising status, and promoted the internationalization of the Renminbi. While having accepted and observed the current international rules of the game, China seeks changes for greater institutional power and for better global governance. I come to the conclusion that China is a status quo power which at the same time is hoping for constructive changes in the existing international order, and is thus a reform-minded status quo power.
• March 2012
Ricardo Meléndez-Ortiz, Joachim Monkelbaan, and George Riddell, "China's Global and Domestic Governance of Climate Change, Trade and Sustainable Energy: Exploring China's Interests in a Global Massive Scale-up of Renewable Energies" (中国对气候变化、贸易以及可持续能源的全球国内治理：探索中国对新能源大力全球规模化的兴趣), Indiana University Research Center for Chinese Politics & Business, Working Paper #24, March 2012. Full Text (全文)
Abstract: After reviewing China's involvement in energy, trade and climate change governance and its needs in this respect, this paper explores China's possible interest in a 'Sustainable Energy Trade Agreement' (SETA) approach as a way to address those needs. Subsequently, it identifies international and domestic opportunities and constraints for China's participation in an international cooperative initiative aimed enhancing global markets for renewable energy. Besides discussing the specific aspects of Chinese participation in such an initiative, this paper aims at offering broader insights into the junction between trade, energy and climate change governance in China.
• March 2012
Thomas Hale and Charles Roger, "Domestic Politics and Participation in Transnational Climate Governance: The Crucial Case of China" (国内政治及"跨国气候治理"(TCG)参与：关键性中国案例), Indiana University Research Center for Chinese Politics & Business, Working Paper #23, March 2012. Full Text (全文)
Abstract: Transnational governance is increasingly important to many areas of global politics, including global climate change, where multilateral negotiations have fallen into gridlock. However, we have yet to fully understand how domestic political conditions affect sub- and non-state actors' ability to engage in governance beyond the state. Existing approaches to transnational governance emphasize, often implicitly, a liberal, pluralist view of politics, in which non- and sub-state actors have considerable agency with which to pursue their interests. The paper explores, instead, transnational governance under conditions of "fragmented authoritarianism," explaining how the Chinese political context affects sub- and non-state actors' participation in transnational climate governance. Because China will soon be the world's largest emitter of greenhouse gases, understanding Chinese actors' participation is crucial to the ultimate success of transnational approaches to climate governance. We find that while Chinese participation in TCG is limited and primarily reactive, the fragmented nature of the Chinese political system allows for greater participation than conventional theoretical approaches would expect.
• March 2012
Edward Wang and Cai Tuo, "China's Participation in Global Governance on Climate Mitigation: Study on the Influence of Epistemic Communities in the Policy-making Process" (缓解气候变化全球治理中的中国参与:知识共同体在政策制定过程中的影响研究), Indiana University Research Center for Chinese Politics & Business, Working Paper #22, March 2012. Full Text (全文)
Abstract: As one of the leading GHG (greenhouse gas) emission countries, China is playing the most important role in the world climate mitigation issue. Since 1980s, China's climate change policy has been transformed deeply: from the symbolic participation to substantial cooperation, from the refusing to take any quantified emission cut to taking the carbon intensity reduction way, and to take the quantified emission cut in the near future. This paper argues that the Epistemic Communities, especially the Chinese experts among them, actually facilitate China's change in the climate change issue--the change of policies and the attitude toward global governance in the climate mitigation. China has to make some change or take some responsibility facing high international press. To deal with that press, state decision makers would consult with the experts in that area. Those experts who participated in the decision making process are really influential. However, not all the professionals would be put into the consultation channel. China's transformation would be a kind of active adjustment and adaptation rather than a passive acceptance.
• March 2012
James G. McGann, "Chinese Think Tanks, Policy Advice and Global Governance" (中国智库,政策建议及全球治理), Indiana University Research Center for Chinese Politics & Business, Working Paper #21, March 2012. Full Text (全文)
Abstract: Soon after leaving his post in the Chinese government, Zeng Peiyan, a former Chinese vice premier, was elected chairman of the executive council of the China Center for International Economic Exchanges (CCIEE), a high-level think tank that was established 2010 in Beijing. The official press release and the state sponsored media in China announced and then anointed this new organization as "China's top think tank" and a "super think tank." A number of other former high level government officials were recruited to serve on the Board and the think tank was launched with great fanfare with think tanks and policymakers being invited to the inaugural conference last Spring.
CCIEE's initial research agenda is ambitious and includes the continuing financial crisis, the emergence of China and the new world financial order, the strategic cooperation between China and the United States, the decision-making systems of foreign governments and international organizations including the World Bank, International Monetary Fund and the World Trade Organization and finally, the role of think tanks in formulating government economic policy.
Other Chinese think tanks such as the Chinese Academy of Social Sciences, the Shanghai Academy of Social Sciences and the China Institute of Contemporary International Relations have dramatically increased their profiles at international meetings and expanded targeted outreach activities to think tanks around the globe. This paper will attempt to chronicle the rise of Chinese think tanks on the national and international stage. The paper will also attempt to identify the strengths and weaknesses of Chinese think tanks in the domestic and international political context. Finally, the research attempts to make some comparisons to think tanks in other emerging powers such as India and Brazil.
• February 2012
Wang Xiaoqiong, "National Security Review of Foreign Mergers and Acquisitions in China: Progress and Reform" (中国外资并购安全审查政策回顾:进步与改革的挑战), Indiana University Research Center for Chinese Politics & Business, Working Paper #20, February 2012. Full Text (中英全文)
Abstract: China has made much progress in providing a business environment conducive to foreign direct investment (FDI). The challenge now is to move towards a more transparency-based, accountability-based and proportionality-based policy framework that will attract high-quality FDI so that China can achieve its national security goals with the smallest possible impact on investment flows. This paper proposes several policy reforms for the Chinese government to consider in further developing such a framework. These include clarifying the definition of national security, improving and clarifying the control standard, improving the accountability of the security review body, better harmonizing the security review system with China's industrial policy, and specifically stipulating the legal liability involved when market actors violate rules governing security review.
• February 2012
Quan Li and Guoyong Liang, “Political Relations and Chinese Outbound Direct Investment: Evidence from Firm- and Dyadic-Level Tests" (政治关系与中国对外直接投资:基于企业层面及双边数据的实证检验) Indiana University Research Center for Chinese Politics & Business, Working Paper #19, February 2012. 2012. Full Text
Abstract: Chinese outbound direct investment (ODI) has been a controversial phenomenon and an increasingly important research topic. We argue that ignoring the role of international relations in Chinese outbound investment is an important oversight in the literature on the determinants of Chinese ODI. Building on the literature on international politics and FDI in general, we identify the mechanisms and reasons for why China's political relations with potential hosts significantly influence firm investment decisions and ODI flow patterns. A novel empirical contribution of the paper is to test the effects of interstate political relations on Chinese ODI using two interrelated and complementary empirical tests: one at the firm level based on survey responses of 346 Chinese investors and the other at the dyadic level based on Chinese ODI flows to some 95 countries from 2003 to 2005. We find that the more importance a Chinese firm attributes to interstate relations, the more likely its investment decisions will be affected and that Chinese ODI is more likely to flow to countries with which the Chinese government has better political relations. Our analysis also addresses the puzzle of why Chinese ODI tends to go to countries of high political risks. Chinese investors go to those environments, not because of their risk acceptant preferences, but rather because of the risk-reduction effect of good political relations. Scholars of Chinese ODI as well as FDI in general should note that international politics does matter to the distribution of international production capital.
• February 2012
Tim Bartley and Zhang Lu, "Opening the 'Black Box': Transnational Private Certification of Labor Standards in China" (打开"黑箱": 跨国私营劳工标准认证在中国), Indiana University Research Center for Chinese Politics & Business, Working Paper #18, February 2012. Full Text
Abstract: This paper examines the dynamics and possible effects of transnational private certification of labor standards in Chinese export-oriented consumer products industries. Drawing on interviews with various relevant actors in Guangdong, Shanghai, and Beijing and a survey of manufacturing firms in Guangdong province, we investigate: How have initiatives originating outside China been shaped by the Chinese context and potential competition from domestically-driven standards? What are the circumstances in which factories get certified, and to what extent does being certified indicate compliance with standards? To what extent are there clear differences in the performance of certified and non-certified factories? Overall, we find that factory certification has been insufficient to transform labor conditions and relations in Chinese factories, but it sometimes supports improvement or formalization in management practices. In addition, we consider whether factory certification may have indirect effects on the evolution of labor relations in China and the shape of global governance.
• January 2012
John Wagner Givens, "On Their Best Behaviour: Foreign Plaintiffs in Chinese Administrative Litigation," Indiana University Research Center for Chinese Politics & Business, Working Paper #17, January 2012. Full Text
Abstract: Representatives of multinational companies routinely bring suits against the Chinese state in the form of the patent or trademark bureau in Beijing's First Intermediate Court. While some foreign litigants still complain about delays and the quality of some proceedings, litigation runs at something approaching an international standard. Yet in any given year, outside of this single chamber in a single court in a single city in a country of over a billion people, only a small handful of foreign litigants will directly challenge the Chinese state in court. Instead, disagreements between foreign multinationals and other parts of the Chinese state will most likely be settled in direct meetings with officials.
This paper argues that this discrepancy is part of a compromise between the Chinese state and multinationals operating in China. The "groping for stones to cross the river" approach that has been a hallmark of China's reform era government means that instead of using a foreign presence to motivate reform and improve the administrative legal system, the state creates an effective but ad hoc solution to fix problems affecting foreigners. I demonstrate that although foreign firms may have difficulty litigating against the Chinese government, it is on balance no more difficult for them than most other classes of plaintiffs. I conclude that while the reluctance of multinationals to engage the Chinese state in litigation is understandable, multinationals' reluctance to make use of administrative courts and a preference for extra-legal special treatment severely limits their potential contribution to China's rule of law.
• January 2012
Lan Rongjie, "Are Intellectual Property Litigants Treated Fairer in China's Courts? An Empirical Study of Two Sample Courts," Indiana University Research Center for Chinese Politics & Business, Working Paper #16, January 2012. Full Text
[Published as "Are Intellectual Property Litigants Treated Fairer in China's Courts? An Empirical Study of Two Courts", International Review of Intellectual Property and Competition Law, 751-771 (2012), available online by clicking here.]
Abstract: Compared with regular civil cases, intellectual property cases more often involve: 1) profound scientific and technical issues; and 2) at least one foreign party. Empirical research in two sample courts, corroborated by information from other sources, reveals: 1) epistemic deference of judges, court leaders in particular, to expert opinions with respect to scientific and technical matters; and 2) more care and scrutiny from the court in foreign-related cases. Also due to higher participation of lawyers, intellectual property cases are generally tried in a fairer manner in China's courts.
• January 2012
Dan Li, Marjorie Lyles, and Haifeng Yan, "Effects of Past Experience, Learning Capabilities and Overall Motivation on the Performance of Chinese Outward FDI and the Mediating Role of Learning," Indiana University Research Center for Chinese Politics & Business, Working Paper #15, January 2012. Full Text
Abstract: Existing theoretical models of internationalization do not fully explain the international venturing of emerging economy private ventures (Yiu, Lau & Burton, 2007; Lu, Liu, & Wang, 2010; Zahra, 2003). Using survey data of midsized private Chinese firms that have already made outward foreign direct investments (OFDI), this paper introduces how past international experiences, learning capabilities and overall motivations of a firm influence the performance of its OFDI. We hypothesize that each of these variables will have a positive effect on the performance of the current OFDI project and that the firm's learning mediates these relationships. Our results show that the relationship between the firm's potential absorptive capacity and its OFDI performance is fully mediated by what the firm learned from the OFDI project. Also we find that the firm's overall motivation has a direct effect on performance and is partially mediated by what the firm has learned. What the firm has learned from the firm's international business in the host country has a direct and positive effect on the performance of the OFI. However, diverging from prior research, our analysis indicates that neither the founder's international experience nor the firm's prior international experience has a direct impact on the OFDI performance.
• October 2011
Wang Yong, "Being in the WTO for Ten Years:
China's Experience of Learning and Growing Confidence in
Institutional Transformation and Interdependence," Indiana University Research Center for Chinese Politics & Business, Working Paper #13, October 2011. Full Text
Abstract: China has been within WTO for ten years since its accession in 2001. Ten years
experience with WTO has been a process of learning, for China to learn to use the WTO rules
to safeguard its own industrial/export interests, and learn how to deal with political pressure
from major trading partners like the US.
The WTO accession has greatly transformed Chinese society. Though the state remains
powerful, it has become a public service provider, to serve the interests of domestic industries
and exporters. On the other hand, China has become increasingly a diversified society,
fragmented in perceiving China's WTO accession and international economic system.
In this context of great transformation, Chinese have developed a contradictory
self-image about itself and the outside world: a strong power and a vulnerable country; a
beneficiary and victim of international trading system; a defender and a critic of the
The most important lesson China has learned from the impact of the global financial
crisis, is this one: as Chinese economy has become inseparable part of the global economy,
China doesn't have the other choice except continuing to work with WTO and rely on the
WTO rules to protect itself.
China's experience of learning in the past ten years since the WTO accession has
profound implication to the role of China in global governance and the future of global
governance. It is clearly the consideration of the growing practical interests which would
continue to make Chinese decision makers and the public to work with and would make great
efforts to strengthen the multilateral trading system and contribute more to the international
public good, though sometimes it would be reluctant to do.
• October 2011
Li Chunding, "Antidumping Shocks and the Productivity Response of Chinese Industries," Indiana University Research Center for Chinese Politics & Business, Working Paper #12, October 2011. Full Text
Abstract: This paper gives a comprehensive analysis of the productivity effects of China received
antidumping (AD) measures on Chinese industries from both theoretical and empirical aspects.
Theoretical analysis reveals that import country's AD tax improves export firms' technological
efficiency but hurts scale efficiency. Technological progress and TFP also will be improved in
regular conditions. Empirical results show that China's industrial TFP improved under the
pressure of AD from developed countries, increased on average 6.1% after one year; the
mechanism is via inspiring both technological efficiency (improved 5.1%) and technological
progress (improved 6.4%). Additionally, pure technological efficiency has been significantly
improved in AD year but decreased one year later, profit per capital has been hurt in AD measure
year but benefited one year later, and total profit has been significantly hurt. Developing countries'
AD measures nearly have no significant productivity effects on Chinese targeted industries, only
have some positive effects on technological efficiency and negative impacts on pure technological
efficiency. We have included some cases to demonstrate the impact mechanism of the empirical
• October 2011
Wei Liang and Junji Nakagawa, "A Comparison of the FTA Strategies of Japan and China and Their Implications for Multilateralism," Indiana University Research Center for Chinese Politics & Business, Working Paper #11, October 2011. Full Text
Abstract: Japan and China's trade policy has historically centered on multilateralism. Over
the past ten years, however, these two countries have shifted course somewhat by
pursuing a number of free trade agreements (FTAs) and Economic Partnership
Agreements (EPAs). As the two largest economies in Asia, the actions and
interactions of China and Japan have a direct impact on the global trading system.
This paper investigates the divergent motivations and strategies of these two
countries in negotiating FTAs and its impact on regional integration and
• October 2011
Li Luosha, "A New Model for Global Governance: Mutual Benefit of the WTO and FTAs," Indiana University Research Center for Chinese Politics & Business, Working Paper #10, October 2011. Full Text
Abstract: Setting up Experimental Economic Development Zone and groping the way across the river is the
successful experience of China's reform and opening up, which could be referenced for global
trade governance. Similarly, Economic Integration (FTA) should be regarded as an experimental
area of the global multilateral trade governance institutions (WTO). The tough contradiction
between balanced development of trade and equally enjoying fruits of the development by all
members along with deficiencies of the WTO multilateral trade governance institutions could be
broken, through the practicality and experimental role of establishing FTA by seeking successful
experience, regulations and mechanisms. And they will be applied to the WTO multilateral
system to better make it a sound global trade governance institution. Consequently, the WTO and
FTA of long‐term coexistence and complementary trend is a new pattern of global trade
• October 2011
Cheng Dawei, "An Empirical Study on the Endogenous Factors Affecting China's Industrial Diplomacy: Antidumping as a Case Study," Indiana University Research Center for Chinese Politics & Business, Working Paper #9, October 2011. Full Text
Abstract: Current studies on Chinese industrial diplomacy have the following problems: (1) The studies in
China are mainly in cases and events, or takes form of a detailed analysis of a region, which are
lack of general description about Chinese industrial diplomacy (Chen Shengyong 2004 Yu Jianxing
2007) (2). Chinese industry association is a product of reform and opening up with short
developing time, complex background and significant path dependent difference which is
different from the association developing in western mature economy and that increases the
difficulty in the study of the industry diplomacy (3). The scope, approach and method of Chinese
industrial diplomacy have not been fully legitimately established, with the lack of standardization
leading to research difficulties.
This article attempts to investigate the characteristics of collective action of Chinese industrial
diplomacy which reflect the current situation of Chinese industrial diplomacy. This article chooses
responding to anti‐dumping measures as direct study object because it's too general to choose
"Chinese industrial diplomacy" as dependent variable, hoping to discover the characteristics of
Chinese industrial diplomacy through a specific behavior. The article mainly focuses on the
industry association's endogenous factors' impact on responding to anti‐dumping measures. The
second part of it investigates in industry association's endogenous factors and analyzes the
possibility of being independent variable in order to put forward the basic hypothecs. The third
part of it is empirical examination and the fourth part of it draws the conclusion on the Chinese
industrial diplomacy and makes judgment on the development phase of Chinese industrial
diplomacy by comparison between the USA and china.
• October 2011
Yang Rongzhen, "Research of China's Participation in the WTO Trade Policy Review Process," Indiana University Research Center for Chinese Politics & Business, Working Paper #8, October 2011. Full Text
Abstract: In 2006, 2008 and 2010, China underwent three trade policy reviews from the
WTO. This article first outlines the three reviews, mainly focusing on 5 aspects: transparency,
main adjustment of the trade law, foreign investment system, intellectual property, standards and
other technical requirements involved in the reviews. Second is a discussion about Chinese
capacity building in making and adjusting trade policy during different stages. And next is an
analysis of the influence of WTO's trade policy review mechanism on China based on the
• October 2011
Wang Xiaodong, "China's Status and Influence in the Multilateral Trade System," Indiana University Research Center for Chinese Politics & Business, Working Paper #7, October 2011. Full Text
Abstract:In December 2001, China joined the WTO and became the 143rd full member. In the last decade, China's international trade developed rapidly and it has consequently become the largest commodity exporter and the second largest importer in the world. Undoubtedly, China's international status has improved significantly. During this period, the pattern of international economy and trade are also undergoing profound changes. The changes of the balance of power between developing and developed countries, new forms of international trade barriers, a large number of bilateral free trade zones as well as some developed countries' rethinking of globalization are all consequences of the rapid rise of China and its interactions with the outside world. Simultaneously, all this contributes to the uncertainty of the future of China's foreign trade.
China's position and influence in the WTO depend not only on China's own development, but also its interrelationship with other countries. So far, China has taken safeguarding the interests of the core areas as a priority in the Doha Round of negotiations, and this negotiation strategy proved to be practical and effective. Since 2008, China has gradually taken a key role in decision-making in Doha Round negotiations, but its composition of influence is unbalanced. Huge market and the scale of imports is still the crucial source of China's influence, and the gap between China and other leading powers is mainly reflected in the soft power, such as agenda-setting capacity in multilateral negotiations, the dispute-solving skills and the power of guiding the public voice and so on. Whether China can exert the power of considerable leadership compatible with its position as a leading trader depends not only on China's political will, but also on its design of path to the multilateral trading system, professional training and the speed with which it enhances its soft power.
In December 2001, after 15 years of hard negotiations, China became a full member of the WTO, its 143rd. Over the past decade, China seized opportunities for development and basically realized initial strategic goals, which built the foundation of long-term development. China obtained permanent MFN treatment by the U.S., relative fair and stable international trading environment and the right to participate in
the WTO dispute settlement and rules-making. Above all, the accession to WTO helped dramatically promote domestic reform and open and stimulate the economy.
Then how to see the function and influence of China in this multilateral trade system? Firstly, we should analyze the current situation of China's trade and its international background, which will help to understand China's choice of standpoint in the WTO negotiations and policy development's path.
摘要:2001 年12 月中国加入世界贸易组织 (WTO), 成为该组织的第143 个正式成员。过去十年中，中国的国际贸易取得的快速发展，已成为世界上最大的商品出口国和第二大进口国，国际地位显著提高。在此期间，国际经济贸易格局也在发生着深刻的变化。发展中国家与发达国家间力量对比的改变、国际贸易壁垒形式的新变化、双边自由贸易区安排大量产生以及部分发达国家对全球化的反思等既是中国快速崛起与外部世界相互作用的产物，也将构成中国未来贸易发展的不确定性因素。
中国在WTO 中的地位和影响不仅取决于中国自身的发展，也体现在和其他国家的相互作用过程中。中国迄今在多哈回合中以维护核心领域的谈判利益作为工作重点，这种谈判策略被证明是实用和有效的。自2008 年起中国逐步进入了
WTO 多哈回合谈判的决策核心，但其影响力的构成并不均衡。巨大的市场和进口规模仍是中国影响力最重要的来源，中国与其他主要大国的差距则主要体现在软实力要素方面，如多边谈判中制定议程的能力、争端解决的能力和引导舆论的能力等。未来中国能否在WTO 中发挥与其贸易地位相当的国际领导力，不仅取决于中国的政治意愿，还取决于其对多边贸易体制未来发展路径的设计、专业人才的培养以及软实力水平提升的速度。
• October 2011
Tu Xinquan, "Organizational Aspects of China's GPA Accession Negotiation and Their Implications," Indiana University Research Center for Chinese Politics & Business, Working Paper #6, October 2011. Full Text
Abstract: On December 28, 2007, China delivered its application and initial offer for acceding to the Agreement on Government Procurement (GPA) to the WTO Secretariat. The negotiation will define China's openness in an economically and politically significant market: the government procurement for consumption and investment. As a plurilateral agreement under the WTO, the GPA accession negotiation follows the way of WTO accession negotiation. Like the WTO agreements, the GPA also contains general principles and rules over government procurement, as well as specific commitments of individual parties. The negotiation will take place bilaterally between the acceding member and interested parties, then going to the multilateral phase. With the 15-year experience of tough WTO membership talks, China is supposed to be comfortable about copying the previous negotiation approach. In addition, the WTO accession has proven to be successful. The Chinese government is also launching a series of events to commemorate the achievements in the 10th anniversary of China's WTO membership.
However, after the first three years, China's GPA negotiation have shown a number of different features from WTO negotiation. In particular, China is taking a quite different organizational structure in this negotiation in terms of political leadership, organizational arrangements, academic and public involvement. Without a formal political process of interest groups as democracies, these organizational aspects actually represent a Chinese-characteristic trade politics. They have influenced the up-to-date process of the negotiation and will influence the future results as well. The paper will try to describe the organizational aspects of China's GPA accession negotiation in comparison with WTO negotiation from a variety of perspectives, and to discover why they would be so different and how these differences would impact the coming negotiation and its results.
摘要:2007 年12 月28 日，中国向世界贸易组织（WTO）秘书处递交申请，首次提出加入政府采购协议（GPA）意愿。政府采购涉及政府自身庞大消费及投资投入，准入谈判对于中国政府采购市场的开放性具有经济和政治双重涵义。作为WTO 框架下的多边协议，GPA 准入谈判遵循入世谈判步骤规则。与WTO 协议类似，GPA 协议除了规定协议各方应履行具体承诺外，也包含政府采购总体原则及规则。谈判首先在申请方与相关方双边之间展开，然后进入多边谈判阶段。具备15 年的艰苦卓绝入世谈判经验，中国有望在此次准入谈判中驾轻就熟地加以借鉴，更何况入世谈判最终证明成功可行。中国政府同步正在组织一系列活动纪念入世十周年。
然而历经三年，中国GPA 准入谈判体现出有别于入世谈判的种种特征，尤其在政治领导，组织安排以及学界和公众参与度等方面表现出结构性组织差异，具有中国特色的贸易政治与通行的利益相关方之间正规民主决策程序大相径庭。这种差异影响着谈判的最新进程及未来结果。本篇论文从不同视角对比入世谈判，阐述中国GPA 准入谈判的组织结构特征，探讨发掘差异性存在的原因以及这些差异将如何影响未来谈判和结果。
• October 2011
James Scott and Rorden Wilkinson, "China and the WTO", Indiana University Research Center for Chinese Politics & Business, Working Paper #5, October 2011. Full Text
Abstract: The 'rise' of China stands as one of the most significant developments in global politics in the post-cold war era. Yet, China's rise has not been uniformly welcomed. For some, it has generated fears that the PRC's growing global prominence will inevitably be malignant; for others the rise of China has been largely 'system-preserving' in character. While a consensus has yet to emerge, the dominance of the debate has ensured that investigations into the factors shaping the PRC's international relations and, with regard to the subject of this paper, its behaviour in the World Trade Organisation (WTO) have been too bound up with, and as a result too distracted by, the search for proof of 'real' intentions and less concerned with clear analysis. We seek to move beyond the strictures of this debate to investigate more thoroughly the factors shaping China's trade diplomacy.
We argue that an examination of the factors shaping China's trade diplomacy must take into account the strong effects exerted on that diplomacy by its membership of the WTO. To substantiate our argument, we begin by setting out some conceptual markers on what we know about the peculiarities of international institutions as a framework for understanding how the WTO as an institution affects China. We then explore key developments in China's political economy to the point at which the PRC acceded to the organisation before considering how the pursuit of WTO membership has shaped Chinese development, its trade diplomacy, and impact on the WTO of China's membership. We conclude that while WTO accession may have altered the composition of the organisation's core decision-making group by placing China at its heart, it has been sufficiently, and perhaps uniquely costly to China in terms of concessions made, in closing down room for manoeuvre in the current Doha round and in constraining the PRC's capacity to switch from an export-led to a domestic consumption based model of development.
• February 2011
Ethan Michelson, "Public Goods and State-Society Relations: An Impact Study of China's Rural Stimulus," Indiana University Research Center for Chinese Politics & Business, Working Paper #4, February 2011. Full Text
Abstract: Evidence I present in this paper from two rural surveys—one conducted in 2002 and the other in 2010—reflects a dramatic and positive turnaround in state-society relations in the Chinese countryside. Information villagers reported in the surveys reflect improvements in public goods provision, household economic conditions, and popular perceptions of the government in the wake of a pro-rural policy shift beginning in 2004 and heightened by China's 2008 economic stimulus plan. The surveys also suggest that public goods are an important reason why statesociety relations have improved. Public goods significantly enhanced villagers' perception that the government cares about their wellbeing. Although every level of government enjoyed a popularity boost from improvements in public goods provision, the greatest gains were made at local levels of the state. At the same time, however, we have reason to question the long-term sustainability of this positive trajectory. Lying beneath these positive trends are ominous signs of potential threats to state-society relations on the horizon.
• October 2010
Edwin Way and Scott Kennedy, " Conference
Proceedings for the Workshop on China & Global Governance," Indiana
University Research Center for Chinese Politics & Business, October
12,2010. Full Text
Abstract: China's active participation and influence in a wide range of global regimes, from the World Trade Organization to international energy markets, has inspired growing attention and excitement among scholars, policymakers, businesspeople, and others both within and outside of China. In July 2010, Indiana University's Research Center for Chinese Politics & Business organized a conference at Peking University that brought together more than 40 scholars, government officials and industry representatives officials to discuss China's growing participation in global governance. The diverse group of conference participants had a wide range of expertise and came from the Chinese mainland, Taiwan, Canada, Japan, South Korea, Switzerland, and the United States. The conference covered a number of contentious and important issue areas, including the WTO, trade remedies, currency and financial market regulation, technology standards, global energy markets, climate change and the relationship between bilateral relationships and multilateral forums.
The goal of this paper is to: 1) Present a faithful summary of the central points of discussion and debate of each panel; 2) Provide an analysis which highlights similarities and differences in Chinese participation across regime areas; and 3) Indicate likely areas of research which emerged from the discussion. Since the presentations and discussion were made on a "not for attribution" basis, the names of individual participants and their identifying information have been withheld.
• August 2010
Lu Zhang, “From Detroit to Shanghai?
Globalization, Market Reform, and Dynamics of Labor Unrest in the
Chinese Automobile Industry,” Indiana University Research Center for
Chinese Politics & Business, Working Paper #3, August 2010. Full Text.
• July 2010
Jialu Liu, Virginia Harper Ho, and Lu
Zhang, "Chinese Workers: Under Threat or a Threat to American Workers?”
Indiana University Research Center for Chinese Politics &
Business, Working Paper #2, July 2010. Full Text.
Also avaliable at the Social Science Research Network (SSRN) website. Click Here.
Editor's note: In March 2010, the RCCPB hosted the symposium, "Chinese Workers: Under Threat or a Threat to American Workers?" The motivation for the symposium and the question from which its title comes out of are the regular stream of newspaper headlines which paint Chinese workers as either suffering from low pay and horrible working conditions or as fundamental threats to American workers (and those of other advanced economies). Although an oversimplification or even wrong in some respects, the purpose was to provoke and gain greater insights into the condition of labor in China. Liu Jialu, Virginia Harper Ho, and Lu Zhang provided different, yet complementary perspectives based on their backgrounds as an economist, legal scholar, and sociologist, respectively. (At the time of the symposium, Liu was a doctoral candidate in IU's Economics Department and Ho a visiting professor in IU's Maurer School of Law.) Each of them has spent a number of years culling through data, examining cases, and observing workers in China.
• February 2008
Thomas Kellogg, "Constitutionalism with Chinese
Characteristics? Constitutional Development and Civil Litigation in
China," Indiana University Research Center for Chinese Politics &
Business, Working Paper #1, February 2008. Full Text.