Paradiplomacy as a Provincial State-Building Project: The Case of Yunnan’s Relations With the Greater Mekong Subregion

Abstract

This article examines Yunnan’s relations with the Greater Mekong Subregion (GMS) countries grouped in the Asian Development Bank’s (ADB) GMS Program. While locating the analysis in the context of paradiplomacy, this article makes two claims. First, it argues that—unlike subnational governments in federal states—Yunnanese authorities do not use domestic opportunity structures to develop the province’s international agency. Instead, they pursue paradiplomacy as a subnational state-building project, designed to extract economic assistance from the central state. Second, it asserts that—unlike other Westphalian states—the Chinese government has recognized the benefits of paradiplomacy as a way to enhance the structural competitiveness of its borderland provinces in the regional economy. In doing so, it has proactively deployed provincial authorities in the multilevel governance of the GMS Program. At the same time, the central government has remained at the center of Yunnan’s external relations through providing funding and preferential policies for Yunnan’s internal and external economic projects and defining the parameters of Yunnan’s cooperation with the GMS countries and the ADB.