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Chinese Economic StatecraftCommercial Actors, Grand Strategy, and State Control$
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William J. Norris

Print publication date: 2016

Print ISBN-13: 9780801454493

Published to Cornell Scholarship Online: August 2016

DOI: 10.7591/cornell/9780801454493.001.0001

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The Challenge of State Control

The Challenge of State Control

Chapter:
(p.26) 2 The Challenge of State Control
Source:
Chinese Economic Statecraft
Author(s):

William J. Norris

Publisher:
Cornell University Press
DOI:10.7591/cornell/9780801454493.003.0003

This chapter presents a theory that explains the ability of states to control or direct the economic behavior of commercial actors. Using this theory, it considers how states use economics to pursue their grand strategic objectives and how aggregate economic agents' microlevel incentives and consequent behavior generate national security outcomes at the macrolevel of China's grand strategy. The chapter describes five salient factors that determine when a state will be more able to control commercial actors: compatibility of goals between the state and the commercial actors that conduct the economic activity of the state; commercial market structure; unity of the state; the reporting relationship between the commercial firm(s) and the state; and relative distribution of resources between the state and commercial actor(s). The chapter concludes with a discussion of the challenges involved in state control of economic actors.

Keywords:   commercial actors, economics, national security, China, grand strategy, market structure, state control, reporting relationship

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