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.
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- 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.”
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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
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