Chinese Policy Research Articles

Mapping the Evolving Landscape of Library-Related Policies in China: A Topic Modeling Approach

This study aims to investigate the thematic characteristics and evolutionary patterns of library policies in China from 1949 to 2023. Employing the Latent Dirichlet Allocation (LDA) model, the research analyzed 2,703 Chinese government-issued policies related to libraries during this period, identifying key topics and tracing their developmental trajectories. The study recognized four distinct developmental phases, five major topics, and the underlying connections among feature terms within different topics. It discussed the corresponding topic strengths and evolving trends in each phase. Library policies in China are predominantly centered on five key domains: 1) spatial planning and architectural integration, 2) information management and transparency, 3) legal regulations and supervisory enforcement, 4) heritage preservation and sustainable development, and 5) community inclusion and accessibility. Notably, spatial planning and architectural integration consistently garner substantial attention, highlighting their enduring prominence, while there is relatively less emphasis on community inclusion and accessibility, as well as heritage preservation and sustainable development. The contribution of this study lies in conducting a semantic exploration of the overall transformation in library-related policies in China, validating the effectiveness of the LDA model in identifying topics within policy texts, and expanding the research perspective on library policy evolution.

Integrated energy services in parks: Analyzing stakeholder dynamics and innovation under the REITs model through 23 policy documents

Industrial parks are significant consumers of energy, contributing to global carbon emissions and intensifying the need for strategic interventions to meet carbon reduction and energy efficiency goals. In China, the Real Estate Investment Trusts (REITs) model has been adopted to advance the development of Integrated Energy Services (IESs) within these parks. This paper analyzes 23 Chinese government policy documents to explore the key stakeholders in park-based IESs, particularly the central role of energy companies in shaping collective decision-making processes. The study highlights how business models, including financial investment, offline and digital services, and innovative practices, have evolved under the REITs framework to drive the development of IESs and foster collaboration among stakeholders.

Road through a broken place: the BRI in post-coup Myanmar

In the wake of the 2021 coup, Myanmar experienced a renewed civil war that has fragmented the country along a myriad of old and new conflict lines. Despite the high-intensity violence across many regions of the country, China is still pursuing an ambitious connectivity project under its Belt and Road Initiative (BRI): The China-Myanmar Economic Corridor (CMEC) is meant to connect Myanmar to the Chinese market and boost Myanmar’s industrial development. However, the challenging post-coup environment has required significant changes in China’s approach to local infrastructure development and empowered a new set of subnational actors on both sides of the border. This article analyzes how CMEC has fared since the coup, and how the fragmentation of Myanmar has gone hand in hand with that of Chinese agency in the country. Contrary to prevailing descriptions of the BRI as a coherent, strategic, and top-down project, we argue that the case of Myanmar exposes the degree to which it is shaped by local interests and circumstances, and the limits of centralized BRI implementation. Finally, it is likely that adjustments in Chinese policy triggered by the situation in Myanmar will have more long-term consequences for the future of the BRI, specifically a more direct involvement in local security efforts and greater engagement with local authorities beyond the central government.

What influences the development of wine-producing regions? New economic opportunities in the eastern foothills of the Helan Mountains in China

The formation and development of wine regions require unique natural conditions and hundreds of years of technical and cultural accumulation. The development of the wine industry at the eastern foot of Helan Mountain in China, in addition to the appropriate geographical environment, the technical migration, and talent flow supported by consistent policies, have improved the allocation ability of resource factors and conversion efficiency, making it a world-renowned new wine-producing region in just 40 years. This particular mechanism deserves attention as new industries develop in other parts of the world. Using the methods of spatial autocorrelation, hot spot analysis, and geographic detector, this paper comprehensively analyzes the growth and spatial evolution characteristics of wineries in the eastern foot of Helan Mountain in China and deeply discusses the mechanism of the interaction between the localization of global floating capital and China's unique regional economic policies. It is found that the local selection of global floating capital has a spatial locking effect on the formation of CHMWR, and the rolling support policies of China's central and local governments promote the rapid expansion and regional spread of the number and scale of wineries, with significant spatial agglomeration and spatial diffusion. The profound mechanism of such changes lies in the dual interaction of the local selection of global liquid capital and the Chinese government's wine-producing policies adapted to the geographical environment. In this process, a series of internal and external factors such as the innovation of grape planting and wine-making technology, consumer market, and government behavior have accelerated the continuous growth of the wine-producing region at the eastern foot of Helan Mountain in Ningxia. This paper adds a new understanding and deep understanding of the interaction between the local implantation of economic globalization and the macro-control policies of the Chinese government.

Differential Economic Impacts of Chinese and American Trade Policies on Developed Versus Developing Nations

The trade conflict between the United States and China, the two largest economies in the world, has considerable implications for global economic stability and growth. This topic has been selected due to the necessity of understanding how these trade disputes impact other countries, particularly those heavily dependent on exporting goods to these major economies. The analysis aims to investigate the varied effects of the trade war on both industrialized and developing nations. An analysis is conducted to examine the differential effects of the trade war on industrialized and developing nations by studying the changes in GDP growth rates, unemployment rates, and balance of trade trends. This study examines the distinct economic effects of the China-US trade war on Germany, Canada, and Mexico, which serve as representative examples of developed and developing nations. The results emphasize the significance of customized policy measures to tackle the distinct difficulties and prospects encountered by various economies. Developed countries should prioritize efforts to reduce sluggish economic development and address unemployment in specific sectors. On the other hand, developing nations should take advantage of trade diversion benefits and strengthen their economic resilience. This study enhances the awareness of global trade dynamics and offers vital perspectives for policymakers seeking to negotiate the intricacies of international trade wars.

The Path Driving China’s Energy Structure Transformation from the Perspective of Policy Tools

Combing through Chinese energy-related policy texts and exploring the development path of energy restructuring are significant steps towards a better understanding of the history of energy restructuring in the process of building a moderately prosperous society in all aspects. To explore the various paths driving the transformation of China’s energy structure, the energy policies promulgated at the national level from 2001 to 2020 in China were systematically compiled. Based on the policy tool perspective, a theoretical framework for influencing China’s energy structure transition was proposed in three dimensions: objectives, tools, and intensity. A total of 39 national energy policy texts were analyzed using a fuzzy set qualitative comparative analysis method. The results show that (1) the consistency levels of individual preconditions were all below 0.9, which does not constitute a necessary condition for the transformation of China’s energy structure; (2) the sufficiency analysis identified three paths of China’s energy structure transformation, which can be described as models driven by “multiple objectives + information”, “single objective + information”, and “single objective”; (3) energy restructuring is a goal-oriented process; the clarity and certainty of the efficient and green objectives of energy policies have a facilitating effect on energy restructuring, and the support of information technology provides an important guarantee for energy restructuring; (4) compared with European and American countries, it was found that China’s energy policy tools were characterized by an emphasis on macro-planning, insufficient connectivity, and marked tendencies in practice.

Economic Effects Assessment of Forest City Construction: Empirical Evidence from the County-Level Areas in China

Forests are both an irreplaceable natural resource and a vital economic asset for all humankind. Based on the data of counties in mainland China from 2007 to 2020, the article explores the direct impact and spatial spillover effects of the policy implementation on the economic growth of counties with the help of the forest city pilot policy and the policy evaluation model. The results reveal that policy implementation can have a positive economic growth effect on the pilot counties, which, in turn, can significantly increase the size of the county′s GDP, the level of GDP per capita, and the total amount of nighttime lighting brightness. The implementation of forest city construction can bring about 2.74% of total GDP size, about 2.63% of per capita GDP development level, and about 7.25% of nighttime light brightness to the county on average. Cost–benefit analysis also indicates that forest city construction can bring about a comprehensive economic benefit of approximately CNY 686.453 million (approximately USD 96.82 million) to the counties. The rapid improvement in labor productivity, significant influx of high-end factors, and continuous expansion of market potential are important mechanisms through which policy implementation promotes economic growth in pilot counties. While promoting economic growth in the pilot counties, forest city construction can also have positive spatial spillover effects on neighboring areas in the pilot counties. Furthermore, when the deficits in atmospheric vapor pressure and annual evapotranspiration are used as instrumental variables for forest city construction, the empirical estimates are not significantly altered. In the process of building forest cities, county governments should be wary of issues such as the high cost of forest maintenance. This study provides a Chinese model and policy reference for other countries and regions in the world to deal with the relationship between forest city construction and county economic growth.

Online Compulsive Buying and Psychological Distress : A Person-Centered Approach and Reflections on Chinese Social Policy

Online Compulsive Buying and Psychological Distress : A Person-Centered Approach and Reflections on Chinese Social Policy

Economic policy uncertainty and the predictability of stock returns: impact of China in Asia

PurposeMotivated by the significant role of uncertainty in affecting investment decisions and China's economic leadership in Asia, this paper investigates the predictive role of exposure to Chinese economic policy uncertainty at the individual stock level in large Asian markets.Design/methodology/approachWe estimate the monthly uncertainty exposure (beta) for each stock and then employ the portfolio-level sorting analysis to investigate the relationship between the China’s uncertainty exposure and the future returns of major Asian markets over multiple trading horizons. The raw returns of the high-minus-low portfolios are then adjusted using conventional asset pricing models to investigate whether the relationship is explained by common risk factors. Finally, we check the robustness of the portfolio-level results through firm-level Fama and MacBeth (1973) regressions.FindingsApplying portfolio-level sorting analysis, we reveal that exposure to Chinese uncertainty is negatively related to the future returns of large stocks over multiple trading horizons in Japan, Hong Kong and India. We discover this is unexplained by common risk factors, including market, size, value, profitability, investment and momentum, and is robust to the specification of stock-level Fama and MacBeth (1973) regressions.Research limitations/implicationsOur analysis demonstrates the spillover effects of Chinese economic policy uncertainty across the region, provides evidence of China's emerging economic leadership, and offers trading strategies for managing uncertainty risks.Originality/valueThe findings of the study significantly improve our understanding of stock return predictability in Asian markets. Unlike previous studies, our results challenge the leading role of the US by providing a new intra-regional return predictor, namely, China’s uncertainty exposure. These results also evidence the continuing integration of the Asian economy and financial markets. However, contrary findings for some Asian markets point toward certain market-specific features. Compared with market-level research, our analysis provides deeper insights into the performance of individual stocks and is of particular importance to investors and other market participants.

Spatial pattern and compositional distribution of organochlorine pesticides in the black soil region of Shenyang

Organochlorine pesticides (OCPs) are persistent organic pollutants (POPs) prevalent in soils with carcinogenic, teratogenic and mutagenic hazards that are commonly found in soils and remain in the environment even though they have been banned. In order to fill the gap of fewer studies after the ban, soil samples were collected from 308 agricultural fields of cash crops and grain crops in the black soil area of Shenyang City (Liaozhong District, Faku County, Xinmin City and Kangping County) in this study. The aim was to determine, the use and distribution characteristics of OCPs in agricultural soils in the black soil region of Shenyang City. Compositional analysis showed that the detection rate of banned OCPs in agricultural soils was 71.75%, including contaminants such as technical dichloro-diphenyl-trichloroethane (DDT), chlordane and hexachlorobenzene (HCB), which were widely distributed in Liaozhong District, Faku County, Xinmin City and Kangping County, with 45.25% of the fields having compounded contamination of OCPs, and several areas were involved in the fresh inputs of contaminants such as technical DDT. Among them, Kangping County and Faku County are more seriously polluted, with 66.29% and 60.71% of OCPs exceeding the standard. Soil OCPs is more serious in cabbage and rice farmland among cash and food crop farmland. Based on Chinese policy on control, prevention and other pesticide management measures, it was concluded that the framework should be strengthened to prevent further illegal use of banned OCPs.

Climate policy uncertainty influences carbon emissions in the semiconductor industry

Industry carbon emissions have been increasing, yet there remains a dearth of research on the impacts of climate policy uncertainty. This study first explored the effects of climate policy uncertainty on the carbon emissions of semiconductor enterprises. We employed the Bidirectional Encoder Representations from Transformers (BERT) model. We constructed a Chinese climate policy uncertainty index based on electronic news entries to match the enterprise panel data structure from 2011 to 2022. The results showed an increase in climate policy uncertainty, which helped to reduce semiconductor enterprises’ carbon emissions. This effect was primarily achieved via two pathways. First, climate policy uncertainty leads to companies facing stricter environmental requirements, and these companies will proactively increase their investment in environmental, social, and governance standards to cope with the potential risks. Second, climate policy uncertainty is often accompanied by shifts in government climate policy. Governments will provide green subsidies to enterprises to achieve their policy goals. Furthermore, the policy uncertainty for the semiconductor industry could amplify the reducing effect of climate policy uncertainty on the carbon emissions from semiconductor enterprises. Climate policy uncertainty has a greater impact on non-state-owned and smaller semiconductor enterprises. Our study provides a new way to measure climate policy uncertainty, finds a new perspective based on climate policy uncertainty for exploring the potential impacts of corporate carbon emission reductions, bridges the gap between previous studies on enterprise carbon reductions and climate policy uncertainty, and offers a new path for governments to manage industrial carbon emissions.

Future pathways for green hydrogen: Analyzing the nexus of renewable energy consumption and hydrogen development in Chinese cities

Hydrogen energy offers a promising pathway for achieving zero-carbon urban energy consumption. This study quantitatively analyzes the patterns of hydrogen energy development and its linked to electricity consumption in China's urban areas. It investigates the spatial relationships between hydrogen energy expansion, the potential for green hydrogen production, and overall energy use. Utilizing a coupling coordination degree (CCD) model and a panel vector autoregressive (PVAR) model, the research explores the dynamic interactions between urban hydrogen energy development and the transition to renewable energy sources. In line with Chinese government policy, the study also conducts a scenario analysis of green hydrogen production by 2030, proposing a consumption strategy that balances environmental sustainability with economic growth. The key conclusions are as follows: (1) There is a spatial mismatch between the locations where hydrogen energy is being developed and where the potential for green hydrogen production is greatest. Cities with higher electricity consumption demonstrate stronger synergies in the coordinated development of hydrogen and renewable energy. (2) The development of hydrogen energy significantly accelerates the transition to renewable energy consumption in urban areas, with this impact being more substantial than that of the utilization capacity alone. (3) Hydrogen production in the Plan Scenario is significantly higher than in the Pessimistic Scenario, underscoring the critical importance of implementing renewable hydrogen projects in provinces with high production potential. Future trends in green hydrogen consumption at the provincial level indicate that addressing the challenges of efficient inter-provincial transportation of hydrogen energy remains essential.

Low-Carbon Transformation of Chinese Steel Enterprises Under the Dual Carbon Goals: Taking Baowu Group as An Example

The profound changes in the environment have led to increasing global concerns about the negative impacts of carbon emissions. Against the backdrop of the environmental crisis, the concept of “dual carbon” emerged in China, aiming to achieve carbon peaking and carbon neutrality and mitigate the adverse effects of climate change. The establishment of these goals in 2020 marked a significant milestone in global efforts towards a more sustainable future. The paper initially delves into a comprehensive macro and micro analysis, reviewing significant policy measures introduced since the "dual carbon" goals were established in 2020. It pays particular attention to documents that have had a profound impact on the steel industry, emphasizing the urgency of low-carbon transformation among steel enterprises. Amidst the challenges posed by the macroeconomic environment and within the framework of the "dual carbon" policy, the paper takes Baowu Group, China's leading steel enterprise, as the focal point of this analysis. The paper meticulously scrutinizes seven specific measures implemented by Baowu Group in its journey towards low-carbon transformation, adopting a multifaceted perspective. It provides a comprehensive assessment of the effectiveness of Baowu Group's transformation from diverse perspectives, highlighting the successful outcomes of both Chinese government policies and corporate efforts. In conclusion, the paper presents tailored policy recommendations and transformation strategies tailored specifically for the steel industry.

Critical Discourse Analysis of the Portuguese Media’s Coverage of the Belt and Road Initiative: The Case of Portuguese Mainstream Media, Público

Since 2013, when the Belt and Road Initiative was proposed by China, this transnational cooperation initiative has attracted a lot of attention and discussion on a global scale. Portugal has been one of the EU countries actively supporting the Belt and Road Initiative and has signed a formal cooperation agreement with China. Coverage of the Belt and Road initiative has become a window into Portugal’s attitude and impression of China. This work uses newspaper-based data from Público to deconstruct the attitudes of the main Portuguese media towards the Belt and Road Initiative in terms of language use, discursive practices, and social practices, using content analysis and critical discourse analysis. The results show that Público uses both positive and negative terms in its coverage of the Belt and Road initiative, reflecting a complex attitude towards it. Criticism of the Belt and Road initiative reflects concern that Chinese policies could affect Portugal’s national interests, including concerns about human rights and environmental protection, among others. In general, media coverage of the Belt and Road initiative in Portugal has been both approving and supportive, as well as critical and challenging, and this attitude is closely related to Portugal’s international policies, economic interests, and social values. Analysis of this coverage provides a better understanding of the complex global impact of international cooperation projects such as the “One Belt, One Road” initiative and the way they are presented in the media of different countries.

Rural gentrification, the booming B&B industry and linked migration in China: To what extent can gentrification contribute to rural revitalisation?

AbstractAccompanying the functional transformation of rural areas from productivism to postproductivism, the rural areas with scenic views surrounding megacities are re‐evaluated in terms of their importance as destinations for visitors, especially in the case of booming bed and breakfast (B&B) industry in contemporary rural China. While private investment has generally led to improvements in the physical space and economic development of these villages, there is also concern about the negative effects of rural gentrification, such as the commercialisation of rural space, the alienation of rural culture and the displacement of indigenous residents. This study examines the multifaceted nature of rural gentrification by observing two villages within the Moganshan Mountain area—the birthplace of rural B&Bs in China, and explores how these processes have been leveraged to promote rural revitalisation. Research findings suggest that disparities in original resources and property rights allocation underpinning the B&B industries among the first‐wave gentrifiers and the local villagers, when viewed through the lens of linked migration, may lead to different socioeconomic outcomes. The B&B industry's growth can either be exclusive, primarily favouring gentrifiers, or complementary, fostering mutual benefits and learning opportunities for both gentrifiers and local villagers. Moreover, forming a collaborative network of rural villagers, returning migrants, and external elites can contribute to rural revitalisation through gentrification. These findings contribute to the theoretical understanding of rural gentrification by adding evidence from the Global South and provide insights to inform Chinese rural revitalisation policies, especially alternatives to traditional state‐led revitalisation projects.

Will a government subsidy increase couples' further fertility intentions? A real-world study from a large-scale online survey in Eastern China.

How many couples with at least one child under 3 years would like to have another one or more child(ren) in Eastern China and will an in-cash subsidy be conducive to couple's fertility intentions? In sum, only 15.1% of respondents had further fertility intentions (FFI) before learning about the subsidy, and the planned in-cash subsidy policy increased respondents' overall FFI by 8.5%. Fertility has been declining globally and has reached a new low in China. The reasons why the Chinese three-child policy was under-realized, and how couples will react to a planned monthly ¥1000 (€141.2) subsidy policy, are not fully understood. During January and February 2022, a cross-sectional online survey aiming to understand families' expenses of raising a child under 3 years old, and couples' FFI, was conducted. During the survey period, 272510 respondents scanned the QR code. This study reports the findings pertaining to questions on respondents' sociodemographic characteristics, household factors, FFI, and changes in intention from negative to positive after learning about the planned in-cash subsidy. After exclusion, 144893 eligible responses were included. Respondents' FFI, the effect of a planned ¥1000/month*36 months' in-cash subsidy (€5083.2 in total) on people with a negative FFI before the subsidy, and potential reasons for persistent negative FFI after learning about the subsidy were collected through an anonymous online survey. Stepwise binary logistic regression models were used to select associated factors. The potential fertility rate change and government costs were estimated. A stratified analysis by current child number and sensitivity analysis were also conducted. In sum, 15.7% (22804/144893) of respondents were male, 15.1% of respondents reported a positive FFI, and 10.0% (12288/123051) without an FFI at first changed their intention after learning about the planned in-cash subsidy policy. For those who still said 'no FFI', 46.5%, 20.6%, and 14.7% chose pressure on housing status, expenses on children's education, and lack of time or energy for caring for another child as their first reasons. FFI was strongest in participants receiving the most financial support from their parents, i.e. grandparents (OR = 1.73, 95% CI = 1.63-1.84 for the >¥100000/year group), and weakest in those already having two children (OR = 0.23, 95% CI = 0.22-0.24). For those with no FFI before learning about the subsidy policy, respondents with the highest house loan/rent (>¥120000/year, OR = 1.27, 95% CI = 1.18-1.36) were more likely to change their FFI from 'No' to 'Yes', and those with the highest household income (>¥300000/year, OR = 0.65, 95% CI = 0.60-0.71) were least susceptible to the policy. In our study population, about 1843 more births every year and an additional 0.3 children per woman were projected under a conservative estimation. Annual estimated cost at the provincial scale would be ¥817.7 (€115.5) million, about 1.02‰ of the total General Public Budget Revenue in 2022. The findings were generally robust in the stratified analysis and sensitivity analysis. Selection bias and information errors may exist in the online survey responses. The large sample size and detailed further analysis were used to minimize such biases. Fertility intentions in Eastern China are rather low. Policymakers should focus more on financial and childcare burdens for a better realization of the three-child policy, including housing, education and childcare services. An in-cash subsidy, which has never been used in China previously, shows promising potential for increasing FFI. However, the application of such policy should be in line with local conditions for better cost-effectiveness regarding fertility-boosting and fiscal sustainability for the government in the long run. This work was supported by the National Key Research and Development Plan of China (2019YFC0840702). The authors declare no conflict of interests. N/A.

Unveiling energy transition strategy: A deep dive into China's ambitious renewable energy policy and its impact on carbon emission dynamics

Over the past 70 years, China has issued approximately 20,000 renewable energy (RE) policies. How to interpret China's ambitious RE strategy through these policy documents and assess its effectiveness has been a question of interest. Therefore, based on 15,603 Chinese RE policy documents from 1975 to 2022, this study employs text mining, Latent Dirichlet Allocation (LDA), Policy Modeling Consistency-Text Encoder (PMC-TE), and System-Generalized Method of Moments (SYS-GMM). It assesses the policy input intensity (PII) for different energy types, regions, and time periods, while also investigating the impact of PII about RE on carbon emissions. The study findings are as follows: (1)The PII is not uniform, with hydropower having the highest PII at 80,591, followed by solar (25,839) and biomass energy (18,903). The PII of wind (11,377) and geothermal energy (11,340) is similar, while hydrogen energy exhibits the weakest PII at 3488. (2)There are regional disparities in PII, with solar and wind energy being most prominent in northern regions, solar and hydropower being most significant in eastern regions, and wind and biomass energy aligning with local resources in southern regions. (3)RE policies have driven China's energy transition through four distinct phases. (4)Policy effectiveness varies, with solar, wind, and hydropower policies having the most significant impact on carbon emissions reduction, followed by biomass and geothermal energy. (5)China's government role in the RE strategy has shifted from a dominant role to a regulatory one.

FEATURES OF THE REGIONAL POLICY OF THE PRC AND ITS REFLECTION IN RELATIONS WITH KAZAKHSTAN

The article examines the specific features of the regional policy of the People's Republic of China in historical perspective and provides a critical assessment of the foreign policy views of generations of Chinese authorities. It shows how the complex international situation during the first generation of Chinese power influenced the country's foreign policy positions and the level of influence of Chinese foreign policy views on the world order during the Cold War. The study aimed to determine the reflection of China's regional political views in Kazakh-Chinese relations, to find out the features of the adaptation of the core of the Chinese authorities' foreign policy positions to modern criticism. The novelty of the study lies in identifying the features of the regional policy of the People's Republic of China and its reflection in Kazakh-Chinese relations. The objectives of the work include identifying the main strategic features of the foreign policy of each generation of the Chinese government, identifying its influence on the regional political situation and influence on Kazakh-Chinese relations, as well as studying the nature of topical issues between Kazakhstan and China. The topic of the study was considered on the basis of the theory of neorealism, neoliberalism and integration using the methods of historical-comparative, statistical, structural analysis and systematization. These methods helped to comprehensively consider the problem and systematize the results of the analysis. The results of the study allow theoretically comprehending China's regional policy and gaining a deeper understanding of its impact on Kazakh-Chinese relations. The results of the research work can be widely used in studies in the field of international relations, oriental studies, political science, sinology, and history.

Influence of Chinese National Centralized Drug Procurement policy on pharmaceutical corporate R&D investment

ABSTRACT The Chinese National Centralized Drug Procurement (CNCDP) policy has dramatically changed the Chinese drug market and influenced the production and R&D behaviour of pharmaceutical companies. This study empirically examined the impact of the CNCDP policy on pharmaceutical enterprises’ R&D investment and its mechanism using the difference-in-differences (DID) estimation. The findings demonstrate that this policy has a significant positive impact on corporate R&D investment. Moreover, selling expenses and accounts receivable play a crucial mediating role between them. However, there is no corresponding increase in the patent output of pharmaceutical enterprises. Heterogeneity analysis reveals that the policy exerts a more substantial influence on non-state-owned enterprises (non-SOEs) and chemical drug manufacturers than on state-owned enterprises (SOEs) and comprehensive firms. Therefore, it is recommended that the government continue to implement procurement policies, combat medical corruption, urge hospitals to pay promptly for medicines, broaden the scope of procured medicines, and promote the conversion of companies’ R&D investment into high-quality outcomes. These findings offer valuable guidance for developing countries in formulating policies to bolster the R&D competitiveness of their pharmaceutical industries and secure the supply of medicines.

Opting Out: Botswana’s Limited Negotiating Power on Chinese Finance

Since 2013, a downward trend in lending by China’s state-owned policy banks, which are mandated to help finance overseas projects executed by Chinese companies, has been observed in Africa. This article reveals that in Botswana this development started markedly earlier. The country has not borrowed from Chinese policy banks since 2006. Furthermore, overall Chinese lending to Botswana peaked in 2009 and came to a complete halt thereafter. Botswana has nonetheless continued to benefit from grants as well as debt cancellation from China. This shift from borrowing to an exclusive reliance on aid seems counterintuitive for an upper middle-income country with a relatively strong credit rating like Botswana. However, the paper shows that the downgrading of Botswana’s economic co-operation with China came about as a result of the principle of maximisation of national benefit that Botswana’s policy elites uphold in their interactions with foreign lenders, including China. The paper contributes to the literature on African agency as a key variable shaping Africa–China relations but, crucially, also highlights the limitations thereof. Botswana was able to shift to other lenders when it became dissatisfied with the Chinese loan offering. However, it could not get China to change its offering because of structural incompatibilities between Botswana’s demands and China’s approach to foreign lending. The paper also offers a study of Botswana–China economic relations, which have received limited scholarly attention thus far.