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The Walter H. Shorenstein Asia-Pacific Research Center (APARC), Stanford University’s hub for interdisciplinary research, education, and engagement on contemporary Asia, invites nominations for the 2024 Shorenstein Journalism Award. The award recognizes outstanding journalists who have spent their careers helping audiences worldwide understand the complexities of the Asia-Pacific region. The 2024 award will honor a recipient whose work has primarily appeared in American news media. APARC invites award nomination submissions from news editors, publishers, scholars, journalism associations, and entities focused on researching and interpreting the Asia-Pacific region. Submissions are due by Thursday, February 15, 2024.

Sponsored by APARC, the award carries a cash prize of US $10,000. It rotates between recipients whose primary body of work has been featured in Asian news media and those whose primary body of work has been featured in American news media. The 2024 award will recognize a recipient from the latter category.

For the purpose of the award, the Asia-Pacific region is defined broadly to include Northeast, Southeast, South, and Central Asia and Australasia. Both individual journalists with a considerable body of work and journalism organizations are eligible for the award. Nominees’ work may be in traditional forms of print or broadcast journalism and/or in new forms of multimedia journalism. The Award Selection Committee, whose members are experts in journalism and Asia research and policy, presides over the judging of nominees and is responsible for the selection of honorees.

An annual tradition since 2002, the award honors the legacy of APARC benefactor, Mr. Walter H. Shorenstein, and his twin passions for promoting excellence in journalism and understanding of Asia. Throughout its history, the award has recognized world-class journalists who push the boundaries of coverage of the Asia-Pacific region and help advance mutual understanding between audiences in the United States and their Asian counterparts.

Recent honorees include India’s magazine of long-form journalism The Caravan; NPR's Beijing Correspondent Emily Feng; Burmese journalist and human rights defender Swe Win; former Wall Street Journal investigative reporter Tom Wright; and the internationally esteemed champion of press freedom Maria Ressa, CEO of the Philippine news platform Rappler and winner of the 2021 Nobel Peace Prize.

Award nominations are accepted electronically through Thursday, February 15, 2024, at 11:59 PM PST. For information about the nomination procedures and to submit an entry please visit the award nomination entry page. APARC will announce the winner by April 2024 and present the award at a public ceremony at Stanford in the autumn quarter of 2024.

Please direct all inquiries to aparc-communications@stanford.edu.

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World leaders sit around a table during the APEC 2023 summit in San Francisco.
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APEC Summit Dominated by U.S.-China Relations, Policy Challenges

The Asia-Pacific Economic Cooperation summit in San Francisco, which concluded the 2023 APEC host year for the United States, included a highly-anticipated meeting between U.S. President Joe Biden and Chinese President Xi Jinping. Shorenstein APARC scholars weigh in on the significance of the meeting in the context of China’s geopolitical ambitions, the outcomes of the APEC summit, and other topics.
cover link APEC Summit Dominated by U.S.-China Relations, Policy Challenges
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Sponsored by Stanford University’s Shorenstein Asia-Pacific Research Center, the annual award recognizes outstanding journalists and journalism organizations for excellence in covering the Asia-Pacific region. News editors, publishers, scholars, and organizations focused on Asia research and analysis are invited to submit nominations for the 2024 award through February 15.

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Throughout her career reporting on China, first for the Financial Times and, since 2019, for NPR, Beijing correspondent Emily Feng has had the opportunity to cover a broad range of topics. She unveiled the torment Uyghur children endured after being forcibly separated from their parents; exposed the Chinese government's efforts to mute opposition from the diaspora; and recounted how snail noodles had gone viral in China during the pandemic — a seemingly delightful human tale that generated a vitriolic backlash. This kind of reporting on and from China may no longer be possible for the next generation of foreign correspondents, says Feng, winner of the 2022 Shorenstein Journalism Award.

In her keynote address at the award ceremony, she discussed the increasingly dangerous environment for foreign correspondents in China and the challenges hindering access to information: journalists expelled, local staff harassed, sources threatened, reporting trips heavily surveilled, and a country locked down by COVID controls. Feng managed to dodge expulsions, government audits, and other interference in her reporting, but she, too, is now out of China and uncertain if she would be allowed to re-enter and continue her work from inside the country. She shared her reflections on the costs of China’s information vacuum and where China reporting is headed:

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Feng is recognized by the Shorenstein Journalism Award for her stellar reporting on China under strenuous conditions. She was joined by two other China experts on a panel about the future of China reporting: Stanford’s Jennifer Pan, a professor of communication and senior fellow at the Freeman Spogli Institute for International Affairs (FSI), whose research focuses on political communication and authoritarian politics, and Louisa Lim, an award-winning journalist who reported from China for a decade for NPR and the BBC, and who also serves on the selection committee for the Shorenstein Journalism Award. FSI Senior Fellow Andrew Walder, the Denise O'Leary and Kent Thiry Professor at Stanford, chaired the discussion. 

The Appearance of Foreign Media Coverage 

As China has grown into a geopolitical superpower, understanding Beijing’s decision-making is more crucial than ever. Yet under Xi Jinping’s leadership, the number of foreign correspondents on the ground has atrophied, digital surveillance has intensified, and online censorship of sources has tightened. Being tailed constantly during reporting trips is now the norm, says Feng, and many sources are running dry, no longer willing to talk to reporters. “This kind of digital surveillance not only stymies public discourse and civil society in China but also inhibits our understanding of the country,” Feng notes.  

More worrisome still is the rise of harassment, in person and online, of foreign correspondents and the portrayal of their work as intelligence gathering for foreign governments. Feng described how Chinese state media outlets, local government officials, and security personnel have been gradually laying the ground to cast foreign reporters as agents of foreign influence — accusations that carry physical danger and legal costs for reporters. “That kind of language is particularly tough on ethnic Chinese reporters like me,” says Feng, who has personally confronted race-based harassment and xenophobic nationalism. A year ago, for example, she discovered she had been unknowingly subject to a national security investigation related to a story she had done half a year earlier.

Opacity about a country as big as China breeds suspicion and mistrust.
Emily Feng

In addition to whittling down the number of foreign correspondents on the ground and increasing the pressure on those who remain in the country, China’s COVID restrictions have been detrimental to press freedom. The foundations of journalistic work — talking to people, fact-checking, traveling to gather information — have become nearly impossible. 

These increasingly challenging conditions have forced Feng and other China reporters to sacrifice the kind of stories they tell about the country, often filing dry reports that diminish global interest in China. “The result,” says Feng, “is a growing opacity, and opacity about a country as big as China breeds suspicion and mistrust. But it seems to be what China wants: the appearance of foreign media coverage without truly getting to the heart of what is going on in the country and without access to the people making the stories happen.”

A Vehicle for the CCP

In her remarks, Professor Pan described China’s changing media landscape and the rise of digital repression. Fundamentally, she explains, media in all its forms in China is a vehicle for the Chinese Communist Party (CCP) to preserve its staying power. But while the Chinese government has always worked hard to control the domestic information environment, it is now increasingly limiting what the world can know about the country. “The Chinese government thinks it can tell the China story better.”

Altogether, Pan notes, these recent trends — the rise of digital censorship in all its forms, the government’s ability to influence the production and consumption of information, cyber harassment, and undermining of journalists and their work — indicate that the Chinese government has many levers at its disposal to constrain not only the activity of journalists but also limit their reach and influence.

It remains to be seen, however, whether all these efforts will produce the outcomes the Chinese regime wants. Clearly, by eliminating access to foreign correspondents, the world will know less about China, Pan says. “It’s less clear whether this will be advantageous in the long term for the CCP.”

Reshaping the World’s Media

What is filling China’s information vacuum? Since she left the country after reporting from China for a decade for the BBC and NPR, Lim has been interested in this question, or what she calls “the other side of the campaign to marginalize foreign journalists and to cut down on the coverage from China.” 

You can see how foreign journalists are being used to legitimize and validate China’s tactics.
Louisa Lim

Jointly with the International Federation of Journalists, Lim has examined how China is trying to shape a singular story from its perspective by bypassing resident correspondents who speak Chinese, study China, and are savvy about Chinese history, culture, and politics. Her investigations reveal that the Chinese government targets journalists — particularly local journalists from countries in China’s periphery, like Pakistan or Bangladesh — offering them paid tours in China and other enticements in exchange for pro-China reports that it then features in state media. For example, in these pro-China reports, the political indoctrination camps in Xinjiang are portrayed as vocational training camps designed to combat extremism.

“You can see how foreign journalists are being used to legitimize and validate China’s tactics,” says Lim. “That’s why it’s so important that we have sources on the ground telling other stories, but also why that work has become harder. It speaks to the importance of the media and of what China calls ‘discourse power,’ how important it is to China to tell the China story in a particular way.”

Reconfiguring Our Knowledge of China

What is the future of China reporting? There has been a noticeable shift to remote reporting, Feng explains: not only in the sense of reporting on China outside of the country but also in relying on different sources of information. “Traditionally, in journalism, we travel and meet people, but I find more and more that reporting relies on data. The advantage is obvious: you might be blocked from accessing a detention center in Xinjiang, but it’s hard to block satellite images of these camps. This opens up a whole new area of China reporting that relies on data journalism.”

In this vacuum of explanatory, investigative, or simply empathetic reporting on the country, I fear we begin to accelerate toward more misunderstanding, mistrust, and perhaps even conflict.
Emily Feng

Another development, notes Feng, is the emerging beat of “China and the rest of the world.” Foreign correspondents now increasingly report from outside of China on the perceptions of China around the world and tell stories about how China influences all manners of countries and sectors. However, there are costs to this process of reconfiguring our knowledge of China without being in the country, Feng says. “The cultural context and the human reporting are lost, and it is that kind of in-country reporting that helped us make sense of the facts and figures that come out of this massive country.”

Feng, therefore, worries about the future of China reporting. “I don’t worry that China is about to take over the world or invade Taiwan, but I do worry that in the off-chance that this does happen, we won't have enough correspondents on the ground to make sense of that.”

She also cautions that there is no next generation of China correspondents building experience to replace those who are leaving the country and to take up reporting when she and others move on. “There are no new young academics or journalists who want to come to the country, and those who want to are unable to do so. In this vacuum of explanatory, investigative, or simply empathetic reporting on the country, I fear we begin to accelerate toward more misunderstanding, mistrust, and perhaps even conflict.”

“I look forward to returning to China and reporting again if I can, but I hope other people take up the mantle soon,” she concluded.

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Portrait of Emily Feng with text about her winning the 2022 Shorenstein Journalism Award.
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NPR's Beijing Correspondent Emily Feng Wins 2022 Shorenstein Journalism Award

Feng, whose compelling and bold reporting has amplified the voices of Chinese citizens amid rapidly deteriorating press freedom in the country, is the recipient of the 21st Shorenstein Journalism Award.
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China Hasn’t Reached the Peak of Its Power

Why Beijing can afford to bide Its time
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Problems with Revisionism: A Conceptual Framework for Assessing Chinese Intentions

Deciphering China’s intentions is a pressing task for U.S. scholars and policymakers, yet there is a lack of consensus about what China plans to accomplish. In a new study that reviews the existing English and Chinese language literature on intentions and revisionism, Center Fellow Oriana Skylar Mastro offers five propositions to allow for a more productive and data-driven approach to understanding Beijing’s intentions.
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The challenges facing foreign correspondents in China are forcing the West to reconfigure its understanding of the country, creating opacity that breeds suspicion and mistrust, says Emily Feng, NPR’s Beijing correspondent and recipient of the 2022 Shorenstein Journalism Award. But China seems to want the appearance of foreign media coverage without getting to the heart of what happens in the country.

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Event flyer with portrait of speaker Daniel Leese.

This event is co-sponsored by the German Historical Institute, Pacific Office Berkeley and the ZEIT-Stiftung Ebelin und Gerd Bucerius. 

After the founding of the People’s Republic of China, the Chinese Communist Party (CCP) faced a major predicament. Since the new leadership did not allow a free exchange of opinions, the problem was how to obtain reliable information and prevent the circulation of rumors and “fake news.” To deal with this “dictator’s dilemma,” the CCP developed a two-pronged approach. Besides public news items that catered to the mobilizational aspects of party policies, it established secret feedback channels, the so-called neican, or internal reference, bulletins. These were strictly tasked with separating facts from opinion to provide the leadership with an objective account of developments in China and abroad. Over time, a distinct system for the controlled circulation of intelligence, an “information order,” took shape. In this talk, Leese will outline some general features of this information order and comment on whether it was able to circumvent the problem of information bias in authoritarian systems.

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Daniel Leese is professor of Chinese history and politics at the University of Freiburg, Germany. He is, among others, the author of Mao cult. Rhetoric and Ritual during China’s Cultural Revolution (CUP 2011) and Mao’s Long Shadow: How China dealt with its Past (in German), which won the ICAS Best Book Award and was shortlisted for the German Non-Fiction Award. He currently works on a new project that traces what the party leadership knew about domestic and international affairs through secret communication channels.

Andrew G. Walder

In-Person at Okimoto Room, Encina Hall 3rd Floor

Daniel Leese
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Event flyer with portraits of speakers Jude Blanchette, Emily Feng, Qingguo Jia, Alice L. Miller, and moderator Jean Oi.

The 20th National Congress of the Chinese Communist Party is scheduled to begin on October 16, 2022. Its outcomes will determine the country’s trajectory for years to come. Join APARC’s China Program for an expert panel covering the Congresses’ context, coverage, and policy implications for the future. This panel discussion will provide expert analyses of what was expected, what was unexpected, how the policies announced may play out over the coming years, and some lesser-covered policy changes that may herald implications for China and the world.

Speakers 

 

Jude Blanchette holds the Freeman Chair in China Studies at the Center for Strategic and International Studies (CSIS). Previously, he was engagement director at The Conference Board’s China Center for Economics and Business in Beijing, where he researched China’s political environment with a focus on the workings of the Communist Party of China and its impact on foreign companies and investors. Prior to working at The Conference Board, Blanchette was the assistant director of the 21st Century China Center at the University of California, San Diego. 

 

Emily Feng is NPR’s Beijing correspondent. Feng joined NPR in 2019. She roves around China, through its big cities and small villages, reporting on social trends as well as economic and political news coming out of Beijing. Feng contributes to NPR’s news magazines, newscasts, podcasts, and digital platforms. Emily is the recipient of the 2022 Shorenstein Journalism Award for excellence in coverage of the Asia-Pacific region. 

 

Qingguo Jia is professor of the School of International Studies of Peking University. Currently, he is a Payne Distinguished Fellow at the Freeman Spogli Institute for International Studies at Stanford University. He received his Ph.D. from Cornell University in 1988. He is a member of the Standing Committee of the National Committee of the Chinese People’s Political Consultative Conference. He is vice president of the China American Studies Association,vice president of the China Association for International Studies, and vice president of the China Japanese Studies Association. He has published extensively on US-China relations, relations between the Chinese mainland and Taiwan and Chinese foreign policy.

 

Alice L. Miller is a historian and a research fellow at the Hoover Institution. From 2001 to 2018, she was editor and contributor to Hoover’s China Leadership Monitor

Jean C. Oi

Virtual event via Zoom

Jude Blanchette
Emily Feng
Qingguo Jia
Alice L. Miller
Panel Discussions
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CP_Nov2_Bill Kirby

America’s preeminence in higher education is relatively new, and there is no reason to assume that U.S. schools will continue to lead the world a century from now. Will China challenge its position in the twenty-first? The modern university was born in Germany. In the twentieth century, the United States leapfrogged Germany to become the global leader in higher education. Today, American institutions dominate nearly every major ranking of global universities. However, America’s supremacy in higher education is under great stress, particularly at its public universities. At the same time Chinese universities are on the ascent. Thirty years ago, Chinese institutions were reopening after the catastrophe of the Cultural Revolution; today they are some of the most innovative educational centers in the world. Will China threaten American primacy?

Please join us for the China Program’s Author Series.

The book is available for purchase here

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William C. Kirby is T. M. Chang Professor of China Studies at Harvard University and Spangler Family Professor of Business Administration at Harvard Business School. He is a University Distinguished Service Professor. Professor Kirby serves as Chairman of the Harvard China Fund and Faculty Chair of the Harvard Center Shanghai. At Harvard he has served as Director of the Fairbank Center for Chinese Studies, Chairman of the History Department, and Dean of the Faculty of Arts and Sciences. His current projects include case studies of trend-setting Chinese businesses and a comparative study of higher education in China, Europe, and the United States. His recent books include Can China Lead? (Harvard Business Review Press) and China and Europe on the New Silk Road (Oxford University Press). His latest book, Empires of Ideas: Creating Modern Universities from Germany to America to China (Harvard University Press), is now available.

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Andrew G. Walder
Andrew G. Walder is the Denise O'Leary and Kent Thiry Professor at Stanford University, where he is also a senior fellow in the Freeman Spogli Institute for International Studies. Previously, he served as chair of the Department of Sociology, and as director of the Walter H. Shorenstein Asia-Pacific Research Center and of the Division of International, Comparative and Area Studies in the School of Humanities and Sciences.

Jean C. Oi

In-Person at Philippines Room, Encina Hall 3rd Floor

William C. Kirby
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Portrait of Xueguang Zhou and a 3D mockup cover of his book, 'The Logic of Governance in China'

Drawing on more than a decade of fieldwork, The Logic of Governance in China develops a unified theoretical framework to explain how China's centralized political system maintains governance and how this process produces recognizable policy cycles that are obstacles to bureaucratic rationalization, professionalism, and rule of law. Read our news story and watch our book conversation with Zhou here:

The book is unique for the overarching framework it develops; one that sheds light on the interconnectedness among apparently disparate phenomena such as the mobilizational state, bureaucratic muddling through, collusive behaviors, variable coupling between policymaking and implementation, inverted soft budget constraints, and collective action based on unorganized interests. An exemplary combination of theory-motivated fieldwork and empirically-informed theory development, this book offers an in-depth analysis of the institutions and mechanisms in the governance of China.

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An Organizational Approach

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Cover of the book 'Strategy in the Contemporary World' and screenshot of first page of Oriana Skylar Mastro's chapter "Chinese Grand Strategy"

This chapter briefly covers the history of Chinese grand strategy since 1949 before focusing most heavily on China's strategy of rejuvenation under Xi Jinping. It also covers some of the domestic factors that have influenced Chinese grand strategy over time. It then highlights two components central to China's grand strategy — its approach to international institutions and its maritime ambitions. The chapter ends with a discussion of the United States shift to great power competition with China.

Below is an excerpt from Mastro's chapter in Strategy in the Contemporary World, edited by John Baylis, James J. Wirtz, and Jeannie L. Johnson, reproduced by permission of Oxford University Press.
 

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In Strategy in the Contemporary World, edited by John Baylis, James J. Wirtz, and Jeannie L. Johnson, Oriana Skylar Mastro examines the evolution of Chinese grand strategy from Mao Zedong to Xi Jinping, its drivers, and its implications.

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Over much of the last four decades, China's economy has ballooned, growing to become the world's second-largest economic power behind the United States, when measured by GDP. Yet alongside the rapid growth came mounting local government debt. While foreign observers have long recognized China’s local government debt as a risk, only recently did the Chinese Communist Party call out the problem as alarming. 

Why have central authorities allowed local government debt to grow with such little direct intervention? The answer to this question has much to do with a “grand bargain” between China's central government and localities during the 1994 fiscal recentralization reform, according to a new study, "China’s Local Government Debt: The Grand Bargain," published in the January issue of The China Journal.  The study’s co-authors are Stanford political scientist Jean Oi, a senior fellow at FSI and director of the China Program at APARC, Adam Liu, a former doctoral student of Oi, and Yi Zhang.


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The Origins of China's Massive Local Government Debt

The 1994 reform left localities with a tremendous fiscal gap. But then Beijing in fact gave localities enough autonomy to seek funding independently and the green light to create new backdoor financing institutions that counteracted the impact of fiscal decentralization, show Oi and her colleagues. They call this dynamic a “grand bargain.” The bargain’s purpose was to garner regional cooperation in fiscal and financial recentralization campaigns. The result, as the co-authors document, was far from the intended outcome. The policy resulted in greater decentralization, as local leaders used backdoor financing to meet expenditure responsibilities and bolster local development.

The study offers a fresh interpretation of the political economy surrounding the 1994 fiscal reform and a new understanding of the grand bargain, in which secretive financing was the quid pro quo offered to localities to sustain their incentive for local state-led growth after 1994. Oi and her colleagues draw upon municipal and county data as well as interviews and memoirs of key party leaders, architects of the 1994 fiscal reform, to support their assertions about the dynamics of China's economic rise and the local debt problem. Their findings highlight the "paradoxical political dynamics" of China’s political economy. As the 1994 fiscal reform recentralized tax revenues, "countervailing policies substantially promoted decentralization and fiscal empowerment of localities and decreased the transparency of local financial arrangements."

Granting localities the right to operate local state banks was a necessary but insufficient step for establishing the backdoor financing needed to sustain the grand bargain. Local governments needed a middleman to circumvent the bans on borrowing.
Liu, Oi, and Zhang

The grand bargain led to China's continued growth. The drawback, however, was that this economic growth has been accompanied by the accumulation of local government debt with little transparency and central control. When the global financial crisis impacted growth rates, local deficits and debts spiked. In response, Beijing began to shut down backdoor financing and opened front-door options that were transparent and under the control of national authorities — but with limited success.

Reining in Local Government Financing Vehicles

The researchers posit that "only beginning in 2017 did the Communist Party’s own Central Leading Group on Finance and Economic Affairs and various government-related media begin to label local government debt as a threat to the economy, raising the alarm bells by calling it a 'gray rhino,' a likely high-impact threat that was being ignored." Why, then, didn’t Beijing quickly put a stop to local government debt? Why did central authorities wait until 2015 to put measures in place, and wait even longer to identify local government debt as an economic threat?

Oi and her colleagues explain that studies of policy implementation and regulation in China tell us that the national government faces information asymmetry problems, where localities can subvert upper-level directives because the center has imperfect knowledge of what local agents are doing. Such subversion is most likely when local interests are not aligned with Beijing’s. Now, in the wake of the COVID-19 pandemic, the question is whether the pendulum will swing back toward more tolerance of local debt for the sake of economic growth.

All indications, the authors agree, suggest that during COVID-19 and its aftermath, especially as China also has vowed to win and maintain the fruits of the battle against poverty “at all costs,” localities are going to need extra resources, borrowed or not. The center’s pendulum, at least for now, is swinging further away from fiscal discipline toward local incentives and growth.

[Xi's] anticorruption tactics and exerting tighter control to reduce local government debt have not solved the debt problem because the root causes are institutional.
Liu, Oi, and Zhang

Evading Institutional Reforms

Oi and her colleagues contend that the expansion of local government debt is a feature of China's developmental model, which aims to "circumvent rather than tackle difficult institutional reform, kicking the can down the road, opting for an easier fix to avoid the potentially high political costs.” 

The authors' primary takeaway is therefore that local government debt in China is not a local problem. Similar to other developing nations that depend upon local partners, China faces a dual-commitment problem: "growing the local economy without debt requires the central state to simultaneously commit to respecting its local agents’ access to and control over the fruits of local development (of which local fiscal resources are the most crucial part), while exercising credible fiscal discipline over precisely the same set of local agents that the center seeks to incentivize.”

For nearly three decades, Chinese central authorities have relied on the grand bargain to boost the nation's economic might. Oi and her colleagues reveal that the problem of local government debt reverberates to the highest echelons of the Chinese state decision makers and continues to present strategic challenges for the economic juggernaut.  

Read the article by Oi et al

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Jean Oi
News

Jean Oi Elected Vice President of the Association for Asian Studies

APARC’s Jean Oi, a China expert, will begin her term with the AAS in March 2022, serving on a four-year leadership ladder of vice president, president, and past president. Representing all the regions and countries of Asia and all academic disciplines, the AAS is the largest professional association of its kind.
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(Left) Congratulations Adam Yao Liu, Winner of the 2020 BRICS Economic Research Award; (Right) Portrait of Dr. Adam Liu
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Stanford Ph.D. Alumnus Wins BRICS Economic Research Award

Dr. Adam Yao Liu, a former doctoral student of APARC China Program Director Jean Oi, has been awarded the 2020 BRICS Economic Research Award for his research on how banking systems in China are developing.
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Cover of "China's Gilded Age" by Yuen Yuen Ang
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The Role of Corruption in China's Speedy, Risky Boom

How has corruption simultaneously driven China’s economic boom and financial risks? Professor Yuen Yuen Ang explains its role in producing a high-growth but also high-risk economy.
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New research in 'The China Journal' by APARC’s Jean Oi and colleagues suggests that the roots of China’s massive local government debt problem lie in secretive financing institutions offered as quid pro quo to localities to sustain their incentive for local state-led growth after 1994

China’s spectacular growth over the last 40 years has slowed but remains strong, leading the world in economic recovery after the global financial crisis, and even in the current COVID-19 pandemic after a devasting blow early in 2020.  Yet, a number of worrying developments have emerged, most recently the troubles that China’s second largest property development company, the Evergrande Group, have suffered.

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Drawing on insights from recent economic theories of incomplete contracts, we develop a theoretical model on authority relationships in the Chinese bureaucracy by conceptualizing the allocation of control rights in goal setting, inspections, and provision of incentives among the principal, supervisor, and agents. Variations in the allocation of these control rights give rise to different modes of governance and entail distinct behavioral implications among the parties. The proposed model provides a unified framework and a set of analytical concepts to examine different governance structures, varying authority relationships, and the specific principal-agent problems entailed in a bureaucratic setting. We will illustrate this through a case study of authority relationships and ensuing behavioral patterns in the environmental protection arena over a five-year cycle of policy implementation.

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