| This dissertation examines how economic factors shape the ways in which business and government interact, and if that in turn affects businesses' relative influence on public policy. To do so, the study analyzes business-government interaction in three economically distinct sectors (steel, home electronics, and software); further comparison is facilitated by analyzing companies of different sizes and nationalities within each sector.; Based primarily on over 250 interviews conducted in 1998 and 1999, this study supports research on other countries that stresses the significance of economic factors. First, although China's political institutions have exerted some influence on government-business ties, companies' economic circumstances are more consequential. There is only limited convergence in government-business ties between the same sectors in China and elsewhere; however, economic factors displayed their effects in other ways. The steel industry, dominated by large state-owned enterprises, has very weak and inconsequential associations. The software industry, with far more small domestic private and foreign companies that cooperate on technical matters, has more robust associations. The home electronics industry's economic characteristics fall in between those of steel and software and so does the development of its associations. Also, except in the steel industry, larger companies regardless of ownership or rationality interact with the government more regularly and over more policy issues than do smaller firms. Moreover, the economic circumstances in home electronics and software resulted in less deference shown toward the state and greater transparency of the policy process. China has multiple political economies. Based on these cases, we should expect economically similar sectors to exhibit parallel patterns of government business relations.; Second, although economic factors affect the form of government-business interaction, business associations do not necessarily redistribute political influence toward smaller firms. Larger firms still have greater policy influence.; Finally, the dissertation suggests the need to revise the various models used to describe state-society relations and policy making. Non-state actors are having an increasing influence on public policy, but their influence is not closely tied to the development of associations. |
