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Notes from reading the book “China’s Political System” (ed. Heilmann, 2016)

Please share as you see fit.

Context

1 Analyzing Chinese Politics

Various other contextual points


2 The CCP and State Institutions

Section 2.3 seems particularly helpful in the book for AI governance researchers.

P47 Party’s political control institutions;

P48 Executive power is concentrated in the Politburo Standing Committee (around 7 members)

State bodies do regular administrative and policy implementation; party does party discipline, media oversight, propaganda, internal security / secret services.

P49 “With the aid of a large number of regional economic-policy experiments, such as the SEZs and the urban pilot projects, China has succeeded in phasing in market elements.”

Around p50 general framing of the CCP adapting Marxism to ‘the Chinese situation’ and being very willing to adapt over time

P54 “After Xi Jinping assumed power, the party’s strategy of legitimation began to stress a reliance on nationalism. For example, immediately after his appointment as general secretary in 2012, Xi coined the guiding principle of the ‘China dream’, which he describes as ‘the great rejuvenation of the Chinese nation’, whereby the party accomplishes its mission of liberating the Chinese people from poverty and oppression and once again transforms the country into a ‘wealthy and powerful nation’.”

P59 National People’s Congress (NPC) = legislative body + formally the “highest organ of state power”. Indirectly elected every 5 years. It has 3000 people so is not an effective legislative body. Makes various big decisions like constitutional amendments, electing president, going to war. Supposedly the NPC elects people to high-ranking government offices, but this is in practice controlled by CCP bodies.

Chairman of the PRC = “the President”. In practice this has almost always (since the 1990s) been the same as the general secretary / paramount leader. (So Xi Jinping is the President, but it’s not his main title)

P61 Constitution of the PRC is a political document that does not fundamentally affect how political institutions operate.

P62 About 6% of China’s population in the CCP, but a lot of them just for pragmatic reasons, e.g. that it’s helpful for getting jobs in public sector and state-owned enterprises.

P64. Detail on the National Communist Party Congress (which happens every 5 years).

P66 Politburo (around 25 members) + Politburo standing committee (around 7 members, subset of the politburo). Highest decision-making and leadership bodies. Composition of the Politburo is settled by lengthy advance negotiations within the party leadership. Names are then submitted for approval to the Central Committee.

P70 International Liaison Department. Working organ of the CCP central committee (there are only 7 of these). Forms relationships with parties in other countries. Originally these were ideological collaborations, but now its useful as a backchannel.

P71 China National Security Commission. Established 2013. Consolidates all the relevant security institutions, including the PLA, under the leadership of the CCP general secretary as a way of coordinating them.

P72 “Without exception the CCP appoints personnel for leadership positions in both government and administrative bodies. Moreover, decisions made by government bodies must follow those guidelines established by the parallel party committees or by the party groups established within the government bodies.”

P74 Heads of SOEs [state owned enterprises] also members of party committees and can be removed (from SOEs?) by the party system. So there’s strong political control of SOEs

P75 Some intra-party democracy at low levels. Xi has stopped this at a high level.

P76 “The CCP remains the only organization through which one can obtain political power in China. As of the present, no other elites or organizational groups have emerged from the economy or the society that can compete with the CCP or challenges its monopoly of power beyond the localities.”

Central government (technically separate from CCP)

83 Although party/constitution is framed as very centralized/unitary, “with several important exceptions (foreign affairs, defense, and taxation), there is no vertically integrated administrative organization in China to coherently carry out the instructions of the central government. Each administrative level has its own organizational structure that is formally identical to that of the next higher level.”

P85 Levels of government:

Hong Kong and Macau are special autonomous regions and don’t fit into the taxonomy neatly.

Special Economic Zones are technically subordinate to provincial-level governments but have a lot of freedom to maneuver e.g. wrt taxation and regulation.

P90 Coordination between central government and the provinces is hard. E.g. provinces do environmentally-destructive economic stuff because they get a lot of the economic impacts but only some of the environmental impacts.

P92 “Informal federalism” - a lot of economic and financial responsibilities are decentralized. A lot of consensus-building between different levels of government (including sometimes in a formalized way).

[I skipped the section from p94 on the Special Administrative Regions Hong Kong and Macau)

P101- Local governments can implement political directives in different ways. Some of China’s big reforms (e.g. in health insurance) have come from generalizing local experiments. County governments are the most important of the local levels.

P105 During the period of the planned economy, China’s fiscal revenue was primarily derived from the profits of the SOEs. From the 1990s these SOEs had more control over their profits (e.g. reinvesting them). Tax reform. Most money goes to the central government, though some goes to subnational governments. Central government transfers some money to subnational governments.

109 From the 1990s, there have been deficits in the central government budget that are financed by government bonds. Public debt is higher than it appears because there are loans to SOEs by state-owned banks; these are in effect publicly-funded subsidies.

111 In 2013 total public debt (including local levels) around 53% of GDP. Sustainable by international standards. Though in fact the numbers are higher because of state-banked loans. Debt is around a third central gov debt, a third local gov debt, a third debt guaranteed by local govs.

112 Transfer payments to local governments are the largest item in the central government budget. Second is generally defense.

114 “Cadre” = general designation for any leading officials appointed by the CCP to serve in party, government, administration, judiciary, SOEs, etc.

115 Leading party cadres are basically the more important cadres - “Chinese power elite”. There were about 650,000 leading party cadres in 2015.

115 Nomenklatura system: Defines the functions and job titles of leading party cadres. Based on 3 lists:

117 There are formal ways of selecting cadres but in practice it is often about patronage and personal networks

118 Overwhelmingly public-sector employees don’t work for the central government but rather SOEs or regional governments

125 Executive orders and provisions by the State council and other gov entities constitute the largest proportion of legal regulations – particularly for economic things.

129 onwards National People’s Congress:

Section 2.11 on the judicial system – basically about how it's tightly controlled by the CCP

147 PLA is less politically neutral than most armies – officially loyal to CCP. Institutions for party discipline operate within the PLA.

148 Central Military Commission is the highest military leadership organ, e.g. setting doctrine and coordinating defense policy. Few hundred officers and officials.

152 Ministry of National Defense doesn’t do much – basically military diplomatic affairs


3 Political leadership

154 Highest political organ = Politburo Standing Committee. Headed by general secretary of the CCP (“party leader”, currently Xi Jinping).

3.1.1 “normal mode and crisis mode in decision-making”. Various points:

P169 Leading Small Groups. Xi uses them much more than his predecessors. They’re for important decisions in overlapping areas, e.g. Foreign Affairs. Xi made himself in charge of most of them, assuming individual authority that had previously been more consensus-focussed.

180 Xi more media savvy than his predecessors, e.g. trying to make his speeches engaging and doing photo ops.

181 Frequent use of “informal methods of exercising power [...] that are contrary to the official rules in the party constitutions [etc.] are fundamental features of governance in the PRC.”

183 Xi to some extent constrained by previous leaders. E.g. needing Jiang Zemin’s approval in order to do a corruption investigation into a former standing committee member – would otherwise have been seen as an attack on political legacy.

184 Formation of internal factions within the CCP is not permitted - e.g. can’t set up informal clubs for functionaries from the same region.

184 Influential political figures disproportionately studied at Tsinghua.

185 Some crackdowns on “cliques” after Xi came to power

189 Formal process for getting input from chambers of commerce, foreign companies, etc. on draft legislation. These are generally about changing wording rather than overall shape of the legislation. Also informal lobbying – not regulated and highly prone to corruption.

189-190 Think tanks


4 Governing China’s economy

193 At least four factors explain rapid economic growth since 1980s:

197 Economists are doubtful of the reliability of Chinese official GDP statistics (but there has been a lot of economic growth). Seems like this is largely due to technical inadequacy of the National Bureau of Statistics + local governments “dressing up” their reporting.

201 China’s economy was always more decentralized than USSR, e.g. with a lot of economic planning done at local levels. Seems to have made market-driven reforms easier.

203 Discussion of how CCP implemented economic reforms in a way that avoided it losing power. E.g. doing experiments at a local level first, and keeping old governance structures while introducing new ones, with the new ones gradually replacing the old ones.

Type 1: Oligopolistic/monopolistic structures

Type 2: State-owned, often by local governments. Non-strategic sectors. A lot of competition with private and foreign companies

Type 3: Private companies with close government links due to their strategic importance. But they’re not just an arm of the Chinese government.

Type 4:  Private companies that compete in nonstrategic markets. Some of them are big in domestic and international markets.

210 Mechanisms by which state bodies influence companies:

213 Political control of financial system

215 Stock markets first introduced as an experiment by local governments in Shanghai and Shenzhen (with them competing against each other)

Stock markets are dominated by SOEs and prices are influenced more by regulatory intervention that specific successes/failures of the companies – leading to a lot of speculation.

220 Joining WTO in 2001

220 Various ways in which China maybe breaks WTO rules + has mercantilist policies, e.g. protecting domestic businesses. Author thinks the mercantilist thing is often overstated.

227 “[With the economic reforms] the Chinese party-state became a kind of administrative market in which political power was systematically exchanged for economic benefits. Such ‘cadre capitalism’ became the most obvious expression of the organizational decay of the CCP. Consequently, the party leadership regards the containment of corruption in China as a 'fight to the death’ for the CCP. (The term ‘corruption’ is defined here in broader terms than in Western societies, covering not only political corruption, misappropriation of public funds, and illegal acquisition of state property but also moral and personal transgressions)”

P228 Good summary of informal negotiations between companies/people in gov

Types of corruption in PRC:

232 High-profile cases of corruption at the highest levels in mid 2010s – reduced CCP credibility

233 “The ‘deep structure’ of China’s political economy (as opposed to the ‘surface structure’ of official economic and political institutions) is characterized by informal exchange networks among those who are politically well-connected and thus enjoy access to the discretionary approval and allocation powers of the party-state decision-makers. These underlying informal structures prevent the emergence of a more open form of economic and political competition and they also undermine the efficacy and credibility of the official laws and regulations. [...] The informal rules of politics, business, and commerce work in parallel with the official rules, either by changing them, canceling them, or supplementing them.”

235 Different varieties of capitalism in different provinces\\

238 GDP per capita is three times higher in Jiangsu (wealthiest province) than Guizhou (poorest)


5 Governing China’s society

245 Chinese gov claims to have prevented 400 million births between 1980s and 2000 with one child policy (though this might be an overestimate)

246 Hukou system: controls access to education, healthcare, urban dwellings, previously also food rations. Lowers migration to cities. As of 2014, the system is planned to be reformed.

252 Activists/critics in China generally have specific demands (e.g. safeguarding legal rights of specific groups) rather than calling for political transformation

257 A fifth of the Chinese population were classified as migrant workers in 2014 - though only about a third are in a different province

270 Some social organizations / associations that do lobbying

271 Party controlled trade unions. These are meant to cooperate harmoniously with company managers and the state to promote economic growth, so often don’t side with workers! Independent trade unions are prohibited, though there are unauthorized strikes.

272 International NGOs have precarious legal status. Easiest way is to cooperate with official partners e.g. universities.

277 Various mechanisms by which CCP has strong control of the media, despite a lot of media being in private sector

296 “There are currently no real signs of attempts to mobilize the population to overturn the existing order, with the exception of underground movements in Xinjiang and isolated radical religious organizations.” No segment of the population could clearly organize a broad enough movement to bring down the CCP. Maybe industrial workers, given that they keep trying to set up autonomous workers’ councils?

6 Policy making: Processes and outcomes

298 Political scientists generally think that communist/socialist autocratic political systems are inflexible and unable to adapt. This doesn’t apply well to PRC - “a system which is unexpectedly adaptable and versatile in many policy areas, particularly with regard to economist and technology policy”

Crisis mode of policy making

302 CCP sees the ability to set long-term dev priorities and to ‘concentrate forces’ on national projects as one of the greatest strengths of the PRC political system.

302 Five year plans evolve during (and after) the 5 years

303 “Decentralized reform initiatives and local reform experiments capable of becoming nationwide political programs have been of utmost importance for China's economic development since 1978. They are part of a special methodology for policy experimentation that is able to open up a wide range of unexpected opportunities for action in a cumbersome, bureaucratic, and authoritarian system of government.”

306 Central gov tries to channel the leading cadres in party and state bodies to overarching objectives (e.g. the fight against corruption, maintaining social stability)

307 Party can go into “campaign mode” to get around lethargic bureaucracy: “falls back on direct mobilization via the party hierarchy, state media, and grassroots organizations.

309 “With respect to national policy formulation, China has become a considerable expertocracy; the political leadership routinely farms out the protracted processes for internal consultations and for reaching compromises to dedicated task forces assembled from a mix of top officials and a large number of experts in the leading fields, some with and some without links to the government”

“In the field of policy advice provided by think-tanks, the following actors can be identified”

311 Gov does (unpublished) polls of the general public as an early warning mechanism for dissatisfaction / possible unrest. Limited to subnational levels that provide most public services.

311 Talks a bit about the role of individual policy entrepreneurs

338 “China’s budgetary policy is characterized by an imbalance in the allocations of public funds between the central gov on the one hand and subnational governments on the other. Because local govs do not receive sufficient task revenue for their costly tasks, they depend on extra-budgetary financing mechanisms. Consequently, they raise capital for infrastructural investments via local-government financing platforms.”

[342ff On infrastructure policy and the high speed rail network]

[380ff on Cybersecurity policy but it’s not clearly relevant to most AI governance things]

[390ff “Mega-projects: China’s South-to-North Water Transfer Project”]


7 Perspectives on China’s political development

399 China’s political order has changed considerably from the totalitarianism of the Mao era (when CCP functionaries and party organs enjoyed practically limitless control over economic and social life) to a “fragmented authoritarianism” in which centralized intervention by the party only takes place during exceptional periods of “crisis mode” governance (see Chapter 3).

401 Factors that support power of CCP leadership

402 “China’s rulers today carefully use dictatorial means of repression to target specific groups or individuals rather than large segments or entire classes of the population as they did in the past. Western discussions of Chinese politics often revert to familiar narratives, such as “the oppressors versus the oppressed” or “the party-state versus civil society.” These narratives, however, explain only a small part of Chinese political dynamics today.”

403 “Perhaps the greatest challenge to the Chinese party-state is the communicative-discursive component of power in today’s digital society. Despite the country’s tight rein on what citizens can access on the Web, interactive digital media are a potentially disruptive libertarian force that can challenge state institutions and influence public opinion. The “demystification” of politics by revealing the ordinariness or corruption among those in power, particularly at the lower levels of government, is something that has been revealed by social media in China. Interactive digital media thus represent a fundamental challenge to Communist rule in China, and the government has taken active steps to control the modern media and to exploit the Internet to present its own agenda.”

Decentralized policy-making by local authorities can mitigate issues caused by central government errors, but Xi Jinping's centralization of policy-making is diminishing this buffer, reducing China's government's ability to adapt and innovate, and negating the distributed intelligence system established by Deng Xiaoping.

China's political system's greatest weakness is its lack of political variability and diversity, with no possibility for political competition or change in the ruling party. The Xi–Li administration's intolerance for critical political views and open debates limits the ability to detect and respond to early signs of crises, potentially undermining system stability.

P425 “Implications for international interactions with China” - doesn’t say much other than that Western attempts to change China through trade and multilateralism haven’t done much

[End of book]


[1] Where a passage seems particularly helpful, I often just put an extended quote in these notes. Similarly, I sometimes screenshot tables.

[2] [Note: The distinction between smuggling and counterfeiting seems pretty fuzzy]