Globalization as Boundary‐Blurring: International and Local Law Firms in China's Corporate Law Market

The worldwide expansion of international law firms has generated regulatory battles and workplace conflicts in advanced market economies as well as developing countries. This article uses the case of China to explore the changing global–local relationship in the globalization of the legal profession and to understand the role of the government in constituting the corporate law market. The author argues that the globalization of the Chinese corporate law market is a process of boundary‐blurring and hybridization, by which local firms become structurally global‐looking and global firms receive localized expertise. Boundary‐blurring occurs in law firms' workplaces, in lawyers' career trajectories, and in state regulatory policies. It has produced a localized expertise that can be diffused conversely from local firms to global firms and has partially changed their relationship from collaboration to competition. Consequently, it becomes increasingly difficult for the government to make or enforce any substantive policy to clarify the market boundary between these two types of law firms.     

The Chinese mafia: private protection in a socialist market economy

Gambetta's theoretical framework focuses on two important aspects directly relating to the birth and development of mafias, namely a demand for private protection and a supply of the same. In the Post-Mao era, China started its transition from a centrally controlled economy to a market-directed economy by adopting reform and opening-up policies. The widespread creation of property rights has exponentially enlarged the demand for protection. However, property rights are ambiguously defined in the Chinese legal system, and the state is unable and unwilling to provide efficient and sufficient law enforcement mechanisms for needy people because of the rampant corruption of government officials and the weak judicial system. In this case, the mafia that is interested in the private provision of protection developed into an alternative enforcement mechanism for ‘securing’ property rights in China's economic transition. The most important service offered by the mafia in China is not only to assist business enterprises in monopolising the market, but also to assist local government in China's economic reform.     

Digital Inclusion for Persons with Disabilities in China Under COVID-19: How Far Has China Come?

This article reviews social regulatory and redistributive policies in China that aim at fostering digital inclusion of persons with disabilities. We examine the emerging Chinese policies and how China has responded to the impacts of the coronavirus disease (COVID-19) on digital inclusion in terms of redistribution, market regulation, involvement of persons with disabilities and disabled people’s organizations (DPOs), and awareness-raising campaigns. The policy review demonstrates that the Chinese policy framework contains a few redistributive initiatives, for example, cash transfer programs, and free distribution of information and communications technology (ICT). These have the potential to increase the uptake of ICT among persons with disabilities. The Chinese policy framework also includes provisions to ensure consultation with individual persons with disabilities and DPOs in the deliberation and implementation of ICT accessibility policies. While China has initiated awareness-raising campaigns among market actors about the importance of digital inclusion, so far, the Chinese government has adopted little legal regulation of the market to foster accessibility to ICT. The article thus argues that some of the limitations may be due to the way state–market relations have developed since the economy opened up in 1978. Apart from the growing benefits of several cash transfer programs, we have not seen major changes or adjustments to the current policy framework during the efforts to mitigate the impact of COVID-19 on digital inclusion.     

ENERGY LAW IN SUPPORT OF THE LOW-CARBON TRANSITION: LESSONS FROM THE UNITED KINGDOM AND CHINA

Law is an important tool for national governments to promote the transition to a low carbon energy sector. However, law is the servant of national politics and policies and is embedded in a wider institutional environment, both nationally and internationally. This comparative analysis of the United Kingdom (UK) and China shows that, although national law plays a role in supporting the transition to a low-carbon energy system, the nature of the law and the role it plays depends greatly on the wider institutional environment. The UK is a parliamentary democracy and a liberal market economy. Therefore, the laws passed by the legislature form a critical part of the framework for the low-carbon transition. In contrast, the authority of the executive in China allows the executive to govern the energy sector through decrees and regulations, and diminishes the role of law passed by the legislature. Energy law and policy in both the UK and China are formulated in the light of the prevailing energy policy paradigm: the market-oriented regulatory state paradigm in the UK and a state-centered paradigm in China. Together, these differences explain the contrasting experiences in promoting the low-carbon transition, in general, and the deployment of renewable energy in particular.     

China's central bank digital currency and its impacts on monetary policy and payment competition: Game changer or regulatory toolkit?

After carrying out some preparatory work for several years, China is likely to issue central bank digital currency (CBDC). Built upon the relevant experience and research in other countries, China has been carefully designing its own version of digital currency and issuance mechanism with a purpose of not disrupting financial intermediation. Nevertheless, it still leaves some residual issues unanswered, in particular, the narrow bank concern and application scenarios. While this article proposes to use interest rates as a policy solution to mitigate the narrow bank concern, the ultimate success of CBDC still depends on market competition. China's CBDC, while initially being used as a regulatory toolkit to compete with other digital currencies, has potential to become a game changer once used in a large scale.     

Technology transfer within China

This paper examines technology transfer within China. The Chinese government is currently placing great emphasis on developing indigenous scientific and technological capacity. In order to expedite the strengthening of science and technology capabilities, the government is promoting extraordinary measures designed to enhance the diffusion of technology within China. Special attention is focusing on strengthening the links between the academic, industrial, and defense sectors. In addition, the government is experimenting with policies commonly used in the West that encourage decentralization and the taking of local initiative. Although China's concern with technology transfer is very recent, it appears that the new technology transfer policies are having an immediate positive effect.     

Fixing the emissions trading scheme: Carbon price stability in the EU and China

This paper critically questions the legal and economic foundation of price regulation in environmental markets, with a focus on the European Union (EU) and Chinese Emissions Trading Schemes (ETSs). In 2018, the EU adopted a structural reform of its own ETS with the objective of increasing and stabilising carbon prices. This reform raises fundamental questions concerning the free market nature of the ETS and its function as a driver of low‐carbon investments. On the one hand, regulatory adjustments are necessary to address the large surplus of allowances that can result from exogenous shocks (e.g. economic downturn). On the other hand, the risk of regulatory intervention in the market undermines investor certainty. In China, limited regulatory independence and more stringent government control over the market exacerbates the threat posed by price control measures to the integrity of China's ETS and its role as a driver of investments in environmental protection.     

Crossing the Rubicon? The implications of RCEP on anti‐monopoly enforcement on dominant E‐commerce platforms in China

The rapid development of e-commerce has markedly influenced the daily lives of the Chinese people over the last two decades. The rise of dominant e-commerce platforms and accompanying alleged abusive practices may impair competition and cause harm to online consumers. Although China's Anti-Monopoly Law and E-commerce Law provide a legal basis to deal with these practices, Chinese competition regulators rarely undertake investigations into these platforms. The inability of the law to keep pace with digital advancements is compounded by outdated rationales and traditional practices. China's problems relate to e-commerce competition and its regulation, such as the old-fashioned anti-monopoly rationale and some abusive practices conducted by dominant platforms. The Regional Comprehensive Economic Partnership (RCEP), concluded in late 2020, provides specific provisions regarding e-commerce and competition, requiring its 15-member states to promote a competitive and integrated e-commerce market in the region. This article critically examines the potential implications the RCEP may have on China's anti-monopoly enforcement of dominant e-commerce platforms and argues that, despite China's recent efforts to regulate e-commerce competition, these developments are still insufficient to fulfil the requirements of the RCEP.     

A New Fundamental Freedom beyond Market Integration: Union Citizenship and its Dynamics for Shifting the Economic Paradigm of European Integration

The development of European integration from an economic to a political community has become manifest not just in the continuous addition of non‐economic policy areas to the treaties. The introduction of Union citizenship (and its controversial subsequent development in the European Court of Justice's jurisprudence) has also triggered a paradigm shift in one of the community's core areas, the concept of negative integration hitherto intrinsically linked to the internal market. Thus, neither the individual's quality as a market actor nor his/her involvement in a transnational economic activity is a condition for enjoyment of the market freedoms' core guarantees, these being a right of residence and a far‐reaching claim to national treatment in other Member States, as well as a prohibition on restrictions to the free movement of persons. A new fundamental freedom beyond market integration (‘Grundfreiheit ohne Markt’) has emerged. This process, whose consequences for the welfare systems of the wealthier Member States have been fiercely discussed for some time, however, also threatens to curtail severely the regulatory autonomy at the national level.     

Smartphone platforms as privacy regulators

A series of recent developments highlight the increasingly important role of online platforms in impacting data privacy in today's digital economy. Revelations and parliamentary hearings about privacy violations in Facebook's app and service partner ecosystem, EU Court of Justice judgments on joint responsibility of platforms and platform users, and the rise of smartphone app ecosystems where app behaviour is governed by app distribution platforms and operating systems, all show that platform policies can make or break the enjoyment of privacy by users. In this article, we examine these developments and explore the question of what can and should be the role of platforms in protecting data privacy of their users.The article first distinguishes the different roles that platforms can have in ensuring respect for data privacy in relevant ecosystems. These roles include governing access to data, design of relevant interfaces and privacy mechanisms, setting of legal and technical standards, policing behaviour of the platform's (business) users, coordinating responsibility for privacy issues between platform users and the platform, and direct and indirect enforcement of a platform's data privacy standards on relevant players. At a higher level, platforms can also perform a role by translating different international regulatory requirements into platform policies, thereby facilitating compliance of apps in different regulatory environments. And in all of this, platforms are striking a balance between ensuring the respect for data privacy in data-driven environments on the one hand and optimization of the value and business opportunities connected to the platform and underlying data for users of the platform on the other hand.After this analysis of platforms’ roles in protecting privacy, the article turns to the question of what should this role be and how to better integrate platforms in the current legal frameworks for data privacy in Europe and the US. The article will argue for a compromise between direct regulation of platforms and mere self-regulation, in arguing that platforms should be required to make official disclosures about their privacy-related policies and practices for their respective ecosystems. These disclosures should include statements about relevant conditions for access to data and the platform, the platform's standards with respect to privacy and the way in which these standards ensure or facilitate compliance with existing legal frameworks by platform users, and statements with respect to the risks of abuse of different data sources and platform tools and actions taken to prevent or police such abuses. We argue that such integration of platforms in current regulatory frameworks is both feasible and desirable. It would make the role that platforms already have in practice more explicit. This would help to highlight best practices, create more accountability and could save significant regulatory and compliance resources in bringing relevant information together in one place. In addition, it could provide clarity for business users of platforms, who are now sometimes confronted with restrictive decisions by platforms in ways that lack transparency and oversight.     

Explaining China's approach to investor-state dispute settlement reform: A contextual perspective

China's approach to ISDS reform is widely perceived as undecided and ambiguous. This paper provides the first detailed analysis of China's submission to the UNITRAL Working Group III and situates China's approach in the context of global dialogue of ISDS reform and competing reform proposals. The paper shows that China's open, flexible, and evolving approach to ISDS reform could be better understood by a contextual evaluation of the pertinent factors which have contributed to its formation. Moreover, this paper explains why China did not sign up to the EU's investment court system (ICS) proposal in the EU-China Comprehensive Agreement on Investment (CAI). Lastly, the paper argues that China should reconsider its attitude towards the ICS in the CAI context and that the EU's recent suggestion that the envisaged multilateral investment court may adopt an ‘open architecture’ is likely to enhance its appeal to China.     

China's Exchange Rate Reform and Exports

The paper argues that exchange rate reform is a vital supply-side factor in China's export growth. It contributes to China's export expansion by affording a realistic exchange rate and allowing freer access to foreign exchange, thereby leading to the reduction of anti-export bias and strong supply response. In an imperfect substitutes model, China's long-run export supply and demand functions are estimated in a system context. Evidence is found that the exchange rate reform is one of the most influential factors in China's long-run export expansion, inducing significant response of exports supply. In the short-run, the exchange rate reform and the export volume are also cross-linked through the error-correction process. China's exchange rate policy adjusts speedily to ensure the long-run equilibrium of the supply-side relationship and is likely to have played a dominant role in the adjustment. The study confirms, thanks to the exchange rate reform, China's exchange rate policy has benefited China's remarkable growth of exports before 1994.     

Privatisation or Competition?

Market competition is essential for any economy to be efficient. In order to develop competition in a transition economy, it is conventionally thought that privatisation should take place first. This wisdom has been challenged by the Chinese reform experience of the last two decades, which modified the incentive structure of state enterprises and created markets and market competition in the absence of large scale privatisation. China's experience, however, raises the question of whether its chosen type of reform is sufficient to promote competition in a market dominated by public firms. To answer this, we need to know what kind of markets were created – regional markets closed to trade or unified markets with easy access – and whether or not improved incentives for state firms have led to competition. This paper investigates these questions on the basis of a survey of both theory and empirical evidence; and finds that the Chinese reform policies did succeed in stimulating competition among state firms.     

Fixed Investment and Economic Growth in China

This paper attempts to investigate empirically the investment-growth relationship in China. Using the exogeneity framework pioneered by Engle et al. (1983) and Engle and Hendry (1993), we find that fixed investment is a key determinant of China's economic growth, which, surprisingly, has not been rigorously examined in the literature. The super exogeneity test results suggest that there exists a robust (or structurally invariant) relationship between capital formation and income growth, thereby giving credence to policy evaluation.     

Nonprofit Entrepreneurship: The Astoria Motion Picture and Television Center

The author investigates social change in Vietnam in the late 1980s-2000s, a transition from a subsidized economy to a market-oriented economy. The author discusses the influences of socioeconomic changes on the operation of the performing arts sector through analyzing changes in cultural policies, opportunities, and challenges confronted by performing arts organizations. The new cultural policy allows arts organizations, arts managers, and artists more opportunities to develop a greater degree of autonomy and more freedom in performing, programming and other artistic activities. The author believes that open policies will motivate Vietnam to develop its own national identity and to participate in cultural exchange with other parts of the world. However, under the impact of global culture, global economics, cuts in state funding, and rapid technological development, the performing arts sector has faced challenges in terms of financial viability, audience development, and balance between commercialization and artistic creativity. The author suggests that privatization should be implemented depending on the art form. Consideration should be given by the Vietnamese government to implementing appropriate funding policies and schemes, as state funding still forms a significant part of public companies' incomes.     

Regulatory Capitalism and the UK Labour Government's Reregulation of Commissioning in the English National Health Service

Today, policy analysts and regulatory governance scholars are sceptical about the capacity of the regulatory state hypothesis to describe change at the institutional level. For many, the hypothesis is a convenient oversimplification that fails to account for the hybridity of institutional arrangements within individual policy sectors and also for the divergence of reform trajectories across different national and sector‐based policy contexts. This article assesses the influence of the key themes of the regulatory state on the UK Labour government's reregulation of National Health Service (NHS) commissioning organizations. Following the critics, it argues that these themes are only partially evident in the programme. While the government has codified previously informal relationships with policies like Patient Choice and has also subjected commissioning organizations to metaregulatory techniques, its reforms have neither displaced public ownership and the direct supply of commissioning services with markets and new mechanisms for rule making and standard setting, nor have the reforms divided labour within the state by creating an independent agency to regulate NHS commissioning organizations via technocratic means. Under the reforms, NHS commissioning continues to take place within a structure of bureaucratic relationships. However, the article suggests that the hybridity of regulatory techniques at work within the UK Labour government's reregulation of NHS commissioning lends weight to the claim that the current era is one of regulatory capitalism. It concludes with a discussion of the consequences of this finding for the public policy and regulatory governance literatures.     

An input-output approach to the measurement of the information economy

This study presents a set of methods based on input-output analysis to measure the size and structure of a country's information economy. Published current national data bases do not identify even the broad contours of a country's information economy. The methodology which is stylised algebraically using input-output modelling unravels the latent information economy. Both the primary or marketed information activities and the non-marketed or secondary information activities are measured. The interdependencies of the primary and secondary information sectors with the non-information sectors such as agriculture and manufacturing are examined. Linkages and multipliers are also calculated using consistent approaches. Finally, the methodology is empirically validated using Australia as a case-study and the results are discussed.     

An experimental model of regulating the sharing economy in China: The case of online car hailing

Online car hailing represents a disruptive innovation model in the sharing economy and requires a new regulatory response. China's attempts to regulate this emerging industry can be considered highly experimental model. To relieve the pressure from offline competitors and to clarify the ambiguous legal status of online car hailing, China currently enforces a strict regulatory scheme through what can be described as a central-local dual system. Questions, however, have arisen regarding the legality, proportionality and effectiveness of this approach. Moreover, the current system's choice for a segmented market strategy heavily impairs the sustainable development of the sharing economy. Therefore, the adoption of Internet-based regulations for online car hailing might create better prospects to establish a fairly competitive market as well as to further boost the ever dynamic Internet sharing economy in China.     

回到中国——转轨经济法的存在及其价值

上世纪九十年代,中国经济法抛弃了早期的计划经济法范式,转向西方寻求资源,形成了市场经济法范式,认为经济法是弥补市场缺陷之法,而当下中国还处在计划权力经济向市场法治社会转轨过程中,中国的问题不是市场高度发达到出现了自身无法解决的缺陷,而是市场发育不全,经济发展处处受到权力因素的掣肘。市场经济法范式与转轨现实脱节,存在严重的正当性危机。如果要问中国法学向何处去?经济法学的回答是:回到中国,回到转轨现实。中国经济法学需要也正在进行第二次范式转换,转换到转轨经济法范式,推动权力经济向法治经济转轨。     

What Obscures the Skill Content Embodied in China's Net Export?

China will exert a great impact on the world market after its accession to the World Trade Organization (WTO) with its labor-intensive exports, since China has more than 20% of the world's population.¹ Among which farmers make up 78.1% of the share.² This paper intends to measure the skill content embodied in China's net exports by using Maskus' (1994) methodology. The empirical results indicate that other factors tend to overshadow ranking of the skill content. It goes against the conventional wisdom that the Chinese farmers are not regarded as an abundant factor. The paradoxical result can be explained by mismatching of resources, identical homothetic preference and quality of input. Migration from rural areas to the coastal regions within the country will accelerate after China's entry to WTO. Moreover, upgrading of the skill content becomes imperative for China in its adjustment of export structure and resource allocation.