Chinese-Style Lobbying: Internet Oligarchs and the Politics of Wealth Defense

• In Event: Censorship, Propaganda, and Transparency

Abstract

Existing literature on private entrepreneurs in China describe them as politically inactive. However, Internet billionaires, a new generation of private entrepreneurs, have actively influenced national policy-making. This paper makes the first attempt to analyze the business-government relations between the Chinese national government and owners of Internet giants—individuals with massive wealth. It argues that Internet billionaires are the emerging oligarchs in China. Same as oligarchs in other political contexts, Internet oligarchs’ core interest is wealth defense. For years, the state has maintained regulatory uncertainty over Internet giants’ tax practices and corporate structure—a longstanding yet legally questionable industry practice to bypass state bans on foreign investment. The state’s broad discretion in interpreting and enforcing laws in accordance with its own preferences makes Internet oligarchs vulnerable to potential punishment. To prevent policies that confiscate corporate wealth or obstruct the flow of income, Internet billionaires have worked with state-funded policy-making organizations to advance business interests. I name the way Internet billionaires participate in national policy-making Chinese-style lobbying. Features and tactics of Chinese-style lobbying are analyzed in detail by comparing with business lobbying in the US.

Author

• Yixue Shao, Northwestern University