Lobbying of Private Business Associations in Local China: Targets, Strategies, and Influence

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.