Changing state-industrial association relation in China

: the institutional change in industrial associations' supervisory system toward autonomy (2002-2007)

Abstract

For the last three decades since 1978, China has experienced economic reform and liberalization. China is a communist country with authoritarian characteristics; thus, one of the important research topics in political science related to this country is the relationship between political development and economic reform. This dissertation is designed to discuss this important and far–reaching topic by focusing on state–industrial association relation. The changing of the state–IA relation from interdependence to autonomy and separation provides opportunities to observe how the Chinese regime adapts to the economic and global environment in order to maintain an increasingly tough balance between adapting to economic reform and securing its tight political and social control. The main research question is: what is the direction and mechanism for the changing state–industrial association relation? Based on the analysis of the causes and processes of the changing state–industrial association relation toward autonomy, this dissertation argues that the direction of the state–industrial association relation is changing from state corporatism toward societal corporatism. As for the mechanism of the changing state–industrial association relation, it argues that the party–state dominates the changing process, with entrepreneurs playing a secondary role in promoting the change on the state–industrial association relation toward autonomy from state corporatism to societal corporatism. This kind of model change is related to Chinese reform on economic liberalization and preservation on the existing regime. According to the analysis on the causes of the changing state–industrial association relation toward autonomy, the author finds that it is the factor of economic liberalization which include necessities to deepen economic reform and administrative reform as well as the fierce world economic competition after the participation of the WTO have provided impetuses for reforming industrial associations’ limited autonomy which hampered industrial associations to take the role as “sector management” and protecting internal industries. That is to say, in order to adapt to the economic and global environment which caused by the economic liberalization, the Chinese party–state has to loosen the control on industrial associaitons toward autonomy. However, as a communist state which dominated by the ideology of Marxism–Leninism, in order to minimize the potential threat for the existing regime from organized business group, the Chinese regime chooses the framework of societal corporatism but not civil society to change the state–industrial association relation. In addition, the changing process is dominated by the force of party–state but not social force which emitted from economic liberalization. This kind of changing mechanism for the state–industrial association relation in procedure is different from the prediction of the modernization theory and former scholars in studying the transformation of business associations. In terms of the implications of this research on the Chinese political change, it is still difficult to assess the influence of the autonomy of industrial associations on regime change or democratization in this stage because the associational autonomy as a whole has not been obtained. To analyze the political implication of this research, the author thinks that it is necessary to extend the definition of political change by including the change of governance and associational control of the party-state in China. With respect to the autonomy of industrial associations in the framework of societal corporatism on the change of the Chinese governance, it is not only helpful to change the role of the government from economic management to providing public good to people but also will increase the power of business groups in Chinese politics. As for the implication of the autonomy of industrial associations on the associational control of the party–state, generally, it is possible for BAs to experience a similar change in direction and mechanism as that of industrial associations. The autonomy of all associations might be reached as a result of the pressure of social force caused by economic liberalization and economic development. If other social forces will press associational autonomy or political liberalization, organized business groups may join in or help the social forces’ struggle if they are discontented with the party-state. Key Words: Industrial Associations, Institutional Change, Industrial Associations’ Supervisory System, Dual Management Pattern

Date of Award	2 Oct 2009
Original language	English
Awarding Institution	City University of Hong Kong
Supervisor	Tak Man Jermain LAM (Supervisor)