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A popular cliché among opinion writers writing about China is that everything works through guanxi - personal ties. Though valid, the bargaining between provincial officials and central bureaucrats is far more complex. Xiao Ma, assistant professor of political science at Peking University, argues that the Chinese Communist Party doesn't simply distribute funds to provinces. Instead, there's a localised bargaining process under which cities and provinces compete for Beijing's largesse. Chinese provinces, even municipalities, have such high-end offices in Beijing that they could be confused for consulates of foreign countries. They are called 'Beijing offices' and act as nodal offices for…
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