The Conference Board uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. Detailed information on the use of cookies on this site is provided in our cookie policy. For more information on how The Conference Board collects and uses personal data, please visit our privacy policy. By continuing to use this Site or by clicking "OK", you consent to the use of cookies. 
China Center Quick Note: Party Over Government - Dangjin Zhengtui

Under the apparent strongman-ship of Chinese President Xi Jinping, there’s been a clear reallocation of policy formulation and implementation--and regulatory authority in general--away from the civil government apparatus (i.e., the state) and into the elite echelons of the Communist Party. For MNCs, the consequences of this shift are many:

  • Less access to policy makers--by design, the party is inherently less accessible than the state government.
  • Less transparency in policy making--by design, the party is inherently secretive.
  • More propensities for policy error--the decreased use of expert opinion, and the more constrained external information and data environment, make for more politicized and error-prone decision making.
  • Regulatory engagement that is more ideologically campaign-based and less rules-based, which means less bureaucratic protection for MNCs.

We’re calling this new paradigm, “dangjin zhengtui” or “party over state,” which we believe will likely persist until a correction is forced or a new leader with a different vision takes the helm in 2022.

Support Our Work

Support our nonpartisan, nonprofit research and insights which help leaders address societal challenges.