Charles Explorer logo
🇬🇧

The Role of Chinese Business Interest Groups in the formation of the ASEAN-China FTA

Publication at Faculty of Social Sciences |
2015

Abstract

Role of a business interest groups in the policy formulation is of the central importance to Richard Baldwin's domino theory of integration. One of the main assumption is that interest groups are willing to fight harder and therefore lobby more if they are about to lose their gains.

By gains Baldwin means access to markets which may be hampered by higher tariffs toward non-members. If the government of exporters is not initially inclined to membership, business interest groups are willing to spend half of their quasi rent on lobbying. - 35 - To prove this point, Baldwin uses G.M.

Grossman and E. Helpman model of pressure groups, hence we need to examine position of the main business interest groups in Chinese policy-making process and an access channels through which they interact with government representatives; their contribution schedules and tools they use to assert their interest, and thirdly, I study their lobbying activity before the conclusion of ASEAN-China FTA and after the conclusion, to see the changes in their lobbying activity.

Following the presumptions of the domino theory, only interest groups from private sector with high reliance on the export to ASEAN countries are examined. Both qualitative and quantitative methodologies are used.

Statistical data on are supplemented by examination of Chinese governmental institutions. Representative sample of Chinese industries exporting mainly to ASEAN countries is chosen and their interaction with government representatives and policy-makers is examined.

To make this study complete, we cannot overlook the economic and political situation and common economic strategies of ASEAN countries before the conclusion of the free trade agreement with PRC.