The Strategic Interaction Of Business Associations And Government Under The Changing Environment In China

In March of2013, the First Session of the Twelfth National People’s Congress(NPC) passed the China Unveils Cabinet Reshuffle Plan that encourages social organizations to play a greater role by simplifying registration and realizing de-administration while beefing up supervision. The above reform tells us two important points. On the one hand, social organizaions assist the CCP to improve the economy development and social stability, which consolidates the one-party authoritarian. On the other hand, state is also finding ways to change itself for adapting the significant role of social organizations. That is to say, the state-society relationship in nowaday China is not the static structure like the state controlling the society or the society against the state. One the contrary, it is an interacting process between the state and the society. When we move our eyes to the reality of China, the interaction of the state and the society shows diversity and dynamics of the state-society relationship. This paper wants to discover what makes the diversity and dynamics of the state-society relationship during the the interacting process of the state and the society. It argues that it is the strategic interaction between business associations and governments in changing environment that matters.The literatre on the state-society relationship in contemporary China experience the transition of theoratical paradigm from the state-society dichotomy to the state-society interaction. There are also abundant discussion from the theory of structure contestation to the theory of action analysis for the relationship of business associations and governments. However, when it comes to the issue of why the interaction of business associations and governments are multifarious and dynamic, the theory of structure contestation is static and rigid and the theory of action analysis is fragmented. Based on the theory of structuration from Anthony Giddens, this paper argues that it is the strategic interaction between business associations and governments in changing environment that results as the multifarious and dynamic interaction of business associations and governments. It consists of two parts. One is the strategic interaction between business associations and governments. The other is mutual influence between the strategic interaction and the changing environment.This paper adopts the mixed methodology of qualitative research and quantitative research to demonstrate the argument. The Large-N statistic analysis finds that local business associations are more inclined to engage in policy paticipation at the local level. Business associations having the support from governments lobby more, while self-established associations lobby less. The comparative case study finds that the interaction between business associations and governments is dynamic and reciprocating, and the strategic interaction and the changing environment influence mutually. The strategic interaction between business associations and governments in changing environment shows diversified types of relations between the state and the society like civil society, state control, corporatism and others.This paper may contribute as follows. First, it focuses on the perspective of structuration to discuss the realtionship of the state and the society beyond the theory of structure contestation and the theory of action analysis. Second, this paper argues that it is the strategic interaction between business associations and governments in changing environment that results as the multifarious and dynamic interaction of business associations and governments, which gets rid of the state-society dichotomy including the state controlling the society and the society against the state. It especially focues on the dual initiative and the dynamic process of the state and the society. Third, it offers a fresh view for the relationship of the state and the society in China. Many scholars find that social organizations are co-opted by the the state and the state successfully preserves the authoritarian regime. However, business ssociations participating in policy making and policy implementation also successfully supervises local governments and makes local governments more responsive to the needs of the society. Therefore, the strategic interaction between business associations and governments in changing environment shows that not only the society is growing up and playing a significant role to change the state and the state also upates and adapts itself to the society. That is to say, relationship of the state and society will be an open and dynamic process for any possibility in future China.