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In 'Precarious Ties', Meg Rithmire offers a novel account of the relationships between business and political elites in three authoritarian regimes in developing Asia: Indonesia under Suharto's New Order, Malaysia under the Barisan Nasional, and China under the Chinese Communist Party. All three regimes enjoyed periods of high growth and supposed alliances between autocrats and capitalists. Over time, however, the relationships between capitalists and political elites changed, and economic outcomes diverged. While state-business ties in Indonesia and China created dangerous dynamics like capital flight, fraud, and financial crisis, Malaysia's state-business ties contributed to economic stagnation. To understand these developments, Rithmire presents two conceptual models of state-business relations that explain their genesis and why variation occurs over time.

A review essay covering books by: 1) Dan Breznitz and Michael Murphree, Run of the Red Queen: Government, Innovation, Globalization, and Economic Growth in China (2011); 2) John Donaldson, Small Works: Poverty and Economic Development in Southwest China (2011); 3) William Hurst, The Chinese Worker after Socialism (2009); 4) Adam Segal, Digital Dragon: High Technology Enterprises in China (2003); 5) Eric Thun, Changing Lanes in China: Foreign Direct Investment, Local Governments, and Auto Sector Development (2006); 6) Susan Whiting, Power and Wealth in Rural China: The Political Economy of Institutional Change (2002).

The study of Chinese political economy has experienced a sea change since the late 1990s; instead of debating the origins and direction of national reform, scholars have turned to examining the origins of local economic variation. This article reviews recent work in the regional political economy of contemporary China. In keeping with a movement in comparative politics toward analyzing subnational politics, the "new regionalists" seek to identify and explain meaningful heterogeneity in the Chinese polity and economy. Yet they go further than simply using subnational cases to generate or test theories about Chinese politics. Instead, they propose that subnational political economies in China are a function of endogenous change rather than a reaction to national priorities. After identifying differences between the "new regionalism" and previous studies of decentralization in China, the author discusses this work according to the theoretical approaches (institutional, ideational, and sociohistorical) used to explain the origins of regional differences. She concludes by examining the limitations of the new regionalist agenda in comparative and historical context and suggesting that scholars move past unconditional acceptance of the causal power of "socialist legacies" and instead attend to the importance of changes in the post-Mao administrative hierarchy.

China's contemporary political economy features an emboldened role for the state as owner and regulator, and with markets expected to act in the service of party-state goals. How has the relationship between the state and different types of firms evolved? This Element situates China's reform-era political economy in comparative analytic perspective with attention to adaptations of its model over time. Just as other types of economies have generated internal dynamics and external reactions that undermine initial arrangements, so too has China's political economy. While China's state has always played a core role in development, over time prioritization of growth has shifted to a variant of state capitalism best described as, "party-state capitalism," which emphasizes risk management and leadership by the Chinese Communist Party (CCP). Rather than reflecting long-held intentions of the CCP, the transition to party-state capitalism emerged from reactions to perceived threats and problems, some domestic and some external. These adaptations are refracted in the contemporary crises of global capitalism.This title is also available as open access on Cambridge Core.