(iPoster) Contesting Commanding Heights: Regional Competition for State Capital in China

• In Event: Poster Session: Politics of Communist and Former Communist Countries (Asia)

Abstract

This article examines an underexplored yet essential dimension of state capitalism in China: subnational competition among local governments to attract and embed centrally administered state-owned enterprises (CSOEs) and their capital. While extensive literature examines local interactions with foreign and private capital, systematic analysis of local-state capital relations remains scarce. The study argues that such competition is an integral yet underappreciated pillar of China’s development model. It develops a two-dimensional typology distinguishing political (policy-driven vs. market-driven) and economic (investment-maximizing vs. structure-enhancing) logics, yielding four ideal-typical modes. Through comparative illustrative case studies, the analysis elucidates the diverse strategies local governments employ to navigate state capital in a market context—offering fresh insights into how China sustains a hybrid developmental state that integrates centralized political control with decentralized economic competition, in dialogue with broader theories of state capitalism and post-communist transitions.

Authors

• Xinyi Liu, Shanghai Jiao Tong University

• Huirong Chen, Shanghai Jiaotong University