State Capacity in Contemporary China: ‘closing the pits and reducing coal production’

Abstract

This paper analyses the capacity of China's central state to control society and implement its policies at the local level, using as a case study the implementation from 1998 of a major policy initiative—‘closing the pits and reducing coal production’. The aims of this policy were to close down many of the TVE (township and village enterprise) mines, thereby ameliorating China's coal safety record, and to reduce output in order to balance supply and demand, thereby improving the situation of the SOE (state-owned enterprise) coal mines. The paper concludes that, despite some success, the state found it difficult to overcome resistance from a powerful coalition of local cadres, mine bosses, workers and farmers who depended directly or indirectly on the mines for their living. It therefore highlights continuing shortfalls in China's state capacity, particularly in situations where the state is trying to control or influence the distribution of economic rents as between different groups in society.