Current Issue

December, 2018

Looking at the Mode and the Strategy of China’s Neo-Globalization

Chia-Hsuan Wu

  After the global financial crisis, China has become more aggressive in promoting its globalization at various international events, highlighting the shift from its passive participation to the initiatives. China’s “neoglobalization” initiatives depart from the contemporary globalization in many dimensions. Set against the above backdrop, this study mainly focuses on the economic and trade issues, and begins with exploring the insides and appeals of neo-globalization from multiple perspectives. It further analyzes neoglobalization’s possible challenges and limits in China with quantitative evidences. Finally, China’s relevant advantages for promoting neoglobalization are outlined to explore the strategic choices and possible outcomes.
  As suggested by this study, neo-globalization can be regarded as a globalization with Chinese characteristics. The motivation for China to promote neo-globalization is not only to keep globalizing the economic society but also to maintain its self-interests derived from engaging in the globalization. Neo-globalization mainly aims to overcome the contemporary globalization’s weakness, in particular, the imbalance of cross-country income distribution and economic development. Neo-globalization with the “China’s solution” suggests the state plays a more aggressive role like “the developmental state,” which may support the development of China’s stateowned capital institution. In achieving neo-globalization, China performs “the Belt and Road” initiative for driving the cooperation among developing countries, highlighting its leadership role in the developing world. Additionally, it is controversial that based on various statistical indicators, China’s ongoing globalization ranks comparatively low. Accordingly, this may be a barrier for the international society, especially the developing world, to echo China’s neo-globalization initiative. In paving the way for promoting neo-globalization, China at least may rely on the scale of domestic demands and the innovative application of digital technologies.

Economic Statecraft and the Behavior of Firms: “One Belt One Road” Initiatives and the Development of China’s Petroleum and Railway Industries

Chih-Shian Liou

  With the strengthening of its economic muscle, China has often adopted economic statecraft, rather than military forces, to alter other countries’ behavior. The “One Belt, One Road”(OBOR)strategy that was initiated in 2013 is a good example. This article, building upon a neoclassical realist framework and using the cases of petroleum and railway firms, explores the variations in firms’ behavior when they carry out the agendas of OBOR. The article also argues that while China’s expanding economic statecraft is a function of its rise to great power status in international politics, the firms involved also impact how the agendas are performed, despite them not being the primary player of the OBOR agendas. For example, when a firm links to the global market at a higher degree, it behaves more like a commercial actor rather than as policy agent.

The Institutional Analysis of the Regulatory Predicaments in China’s Financial Sector

Chung-Min Tsai

  After undergoing rapid economic development for many years, China is beginning to see many new problems emerging, such as overproduction, contradiction between the coal and electricity, bankruptcy of the solar panel industry, the crash of the stock market, a huge local debt, and others. In the financial industry, while there has been a rocketing growth and a rise in innovative production, the regulatory system still has failed to manage the market. The state-owned enterprises enjoy easier banking loan and preferential policies than their private counterparts and are even able to challenge the regulatory agencies. Why has the former regulatory structure of yihang sanhui (one bank and three commissions) been unable to govern the industry? What are the problems about the regulatory designs? Why did the regulatory capture happene in an authoritarian state? This article aims to answer these questions by adopting a new-institutionalist approach and exploring the evolvement of regulatory system in China’s financial industry. This article also argues that the insufficiency of regulatory capacity has its roots in the institutional contradiction. That is to say, while China was adopting the Western style neoliberal regulatory system, it also has converted the system into an administrative-oriented one in order to fit into China’s unique political regime. In the end, the regulatory agencies have been unable to regulate the market and suffered from regulatory failure. This article illustrates the political economy of China’s state regulation and sheds lights on the state-market relationship in the authoritarian state.

Organizations’ Transition and Path Differences: A Comparative Analysis between Unions and Labor NGOs in South China

Yan Liu

  Based on the comparative analysis between a local union and a labor NGO, this paper explores the unique background and path differences of labor organizations’ transition in South China. According to the research, China’s labor organizations are faced with structural changes in the new era, which bring legitimacy challenges with different emphasis to local unions and NGOs in promoting the two organizations’ transition. During the transition, they both participate in labor disputes and organize collective bargaining, but show different working paths in practice. The local union, situated in the governmental system, tries to get close to workers in order to strength the legitimacy and authority. The strong administrative power provides the union with advantages as well as limitations. The NGOs, originating from the civil society, seek to balance the relationship between right-safeguarding and stability-maintaining in order to explore bigger living space. The strong associational power makes the flexible strategies possible, as well as bringing huge political risks and uncertainty.