A Political Economic Analysis On The Impact Of Foreign Enterprises On China's Foreign Economic Policies

It has been 40 years since China started reform and opening up policy.As an important beneficiary of China's national policy,foreign enterprises have gradually expanded their investment field,increased their investment,and continuously innovated their investment methods.They have formed an all-round,multi-level and wide-ranging developing pattern in China,making important contributions to China's economic development.Foreign enterprises have gradually formed their own special political and economic influence.On the one hand,it is an effective way for foreign enterprises to express their interests and participate in political life in a proper way,which is conducive to the democratization and legalization of policy-making.On the other hand,as a special interest group,foreign enterprises may distort and obstruct the marketization process of our country,affect the function of the government's public power,and intensify the social inequality even leads to power rent-seeking and corruption,which damages the policy system of our country.Therefore,it is of great theoretical and practical significance to study the role and influence of foreign enterprises in the process of China's foreign economic policy in the transitional period.This paper studies the influence mechanism and path of foreign enterprises on China's foreign economic policy.Based on the political economy analysis and the three-dimensional analysis paradigm of System-Government-Interest group",this paper constructs the mechanism of the influence of foreign enterprises in China on China's foreign economic policies for the first time.It provides an academic prospect with a certain theoretical depth and data accuracy for the study of the mechanism of political intervention and lobbying of foreign enterprises.Starting from the general theory of interest groups influencing public decision-making,this paper establishes the analysis logic of foreign enterprises influencing China's foreign economic policies,studies the political intervention and lobbying mechanism of foreign enterprises from the two behavioral paths of collective action and individual action,and provides suggestions to the government.In view of the particularity of China's political system and the endogenous characteristics of China's foreign economic policy-making process,further analysis of foreign enterprises and foreign economic policy-making is based on the general theory and exploration the applicability of the classical theory of interest groups to analyze China's foreign economic policy-making.Then,according to the characteristics and behavior logic of foreign enterprises,the analysis framework of foreign enterprises' influence on China's foreign economic policy is established considering the resource endowment and behavior strategy of foreign-funded enterprises in China.In this framework,the impact path of foreign enterprises can be divided into collective action and individual action.Collective action refers to the organized and purposeful activities of foreign enterprises to form interest groups for the common purpose of the group.The most representative "umbrella organization" among the interest groups of foreign enterprises is the American Chamber of Commerce in China.This paper takes the American Chamber of Commerce as the research object to analyze the way and path of its influence in China's foreign economic policy-making.It is found that there are two ways for foreign enterprises to influence China's foreign economic policies: direct one and indirect one.The direct path is that the foreign enterprises intervene the legislative and administrative organs of the host government,while the indirect path is that the foreign enterprises exert pressure on the Chinese government through their home governments in negotiation and consultation.Together,they form the mechanism for foreign enterprises to exert influence on China's foreign economic policies.Individual action is to analyze the lobbying activities of a foreign enterprise.Foreign enterprises can hardly change China's macro-economic policies and national strategic policies.However,due to the decentralization system of the central government and the local government's performance appraisal,foreign enterprises may have an impact on China's local government policies.Considering the concealment of individual behavior,it is feasible to verify the previous hypothesis through historical review,theoretical analysis and empirical test.Therefore,this paper establishes the cooperative game theory to study the interaction between local government and foreign enterprises,and concludes that the higher the fee of rent-seeking activities of foreign enterprises,the higher the subsidy provided by local government.After that,the paper analyzes the data of foreign enterprises in China's microeconomic database with the mixed regression of clustering robust standard error.The results show that the rent-seeking fee of foreign enterprises has a significant impact on government subsidies,which further verifies the influence of foreign enterprises on China's foreign economic policies,especially the local subsidy policies.This study provides policy recommendations from the process of foreign economic policy preparation,formulation and implementation,so as to ensure the healthy and orderly development of China's policy-making process and guarantee the development of China's economy.