ABSTRACT

Policy styles in China can be understood in an institutional context. With the political institutions of the party state, all major decisions must be approved by top leaders, and they have substantial discretion in shaping the policy process. Furthermore, given the importance of the bureaucracy, overcoming the principal-agent and collective action problems represents the major challenge associated with Chinese policy styles. In contrast to many western states, many policies in China have been developed in very general terms, and a significant portion of policymaking and implementation is specified by the bureaucracy. In western countries, bargaining and negotiations in the policy process take place in the legislature, whereas in China the bureaucracy’s role in both is much more significant. This chapter discusses the policy instruments that politicians may use to motivate the bureaucracy, and addresses the collective action and principal-agent problems. Several policy instruments, such as performance evaluation systems for officials, leading small groups, and local policy experimentation have been widely applied in China’s policy process. This chapter highlights the implications of these policy instruments for the country’s policy styles by using illustrative case studies. Public participation in the policy-making process is also discussed as a recent development.