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1 results

  • 4 - Resources and Local State Capture

  • Jing Vivian Zhan, The Chinese University of Hong Kong
  • Book:
    China's Contained Resource Curse
    Published online:
    24 March 2022
    Print publication:
    31 March 2022, pp 114-147

  • Summary

    Chapter 4 analyzes how mineral resources shape the state–capital relations in resource-rich regions. It argues that the symbiotic relationship between local state and resource capital can easily become collusive under the resource boom. Through studies of resource-related corruption cases, it demonstrates how the state’s regulation and interference in the resource sector create structural opportunities for rent seeking and collusion between the regulators and regulatees and how the resource windfalls turn local government departments into hotbeds for corruption. Through panel data analysis on the corruption rates of Chinese provinces, it testifies that resource-rich regions are indeed more corrupt than other regions. This chapter suggests that mineral resources amplify the existing loopholes in the Chinese political economic system and highlights the danger of local state capture by resource capital.