Lobbying in China works differently than in Western countries. Understanding the Chinese political system, the culture of guanxi, and the role of business associations is essential if you want to represent your interests effectively in this market.
Josip Glušac, founder of Gabriel Group, completed his Master's degree in economics with a thesis on "How to Lobby in the People's Republic of China" at an international university. Below is a concise overview based on that work, focused on what foreign companies need to know about lobbying in China today.
What is lobbying?
(Adapted from the Master's thesis of Josip Glušac, originally written in English.)
People use the term lobbying almost every day, but they often mean different things. There is no single, generally accepted definition – even among researchers and practitioners. Broadly understood, lobbying is any attempt by individuals or organisations to influence decision‑makers. In a narrower sense, it refers to interactions between professional lobbyists and lawmakers or other politicians.
In practice, most of us engage in some form of lobbying in our professional or private life – whenever we try to persuade someone in a position of authority to adopt our proposal or solution.
Three categories of lobbying
We can distinguish three categories of lobbying:
- Legal – when no law is broken.
- Legitimate – when lobbyists fully respect their association's codes of conduct.
- Ethical – when the public interest is not harmed.
The maturity of a democracy can often be evaluated by the balance between these three categories of lobbying in a given country.
Lobbying in China: cultural and political context
Successful interest representation always depends on the cultural and political context in which it takes place. China is increasingly a global player that no one involved in international business or politics can afford to ignore. The key question is: is lobbying in China really that different from lobbying elsewhere?
Decision‑making structure
To understand lobbying in China, you first need to understand how decisions are made:
- The Communist Party of China (CPC) – the core decision‑making power.
- National People's Congress (NPC) – the legislative body.
- State Council – the central government and executive branch.
- People's Liberation Army (PLA) – strong influence on security‑related decisions.
Hierarchy is the first and undisputed principle – not just for decades but for millennia. Any lobbying strategy in China has to respect this principle.
Guanxi – the traditional relationship principle
Guanxi (关系) is often translated as "connections" or "relationships". It refers to long‑term, reciprocal networks of trust and obligation.
The traditional guanxi principle is still important, but it has changed. Today, success in lobbying depends on how well lobbyists recognise and adapt to the blend of old and new in each specific case – combining formal procedures with informal relationship‑building.
Business associations in China
Most business associations in China fall into two main categories:
- Chambers of commerce
- Industry‑specific associations
One of the most influential national organisations is the All‑China Federation of Industry and Commerce, which primarily represents large private enterprises. In the last decade, many companies have also created specialised Public Affairs or Government Relations roles. These officers are sometimes former government or Party officials – an example of a "revolving doors" practice that is not yet fully regulated in China.
Practical tips for lobbying in China
For organisations that are new to China, lobbying can be challenging. Some general guidelines include:
- Do not ignore the Chinese public interest – initiatives perceived as contrary to national or public interest are unlikely to succeed.
- Work with a "guanxi broker" where appropriate – hiring classic professional lobbyists is not always straightforward, but it is often possible to engage a well‑connected person within the relevant decision‑making structures.
- Invest in long‑term relationships – building trust with decision‑makers and influential people is probably more important in China than almost anywhere else.
- Involve the right chamber or industry association – this is usually helpful and often expected.
- Use media carefully and strategically – engaging the media can support your position, but it needs to be aligned with the broader political context.
Conclusion
Lobbying in China will continue to develop until it reaches a similar level of importance as in other major economies. This will create more opportunities for both domestic and foreign actors, but specific cultural and institutional features are likely to remain decisive in many cases.
Article prepared by: Josip Glušac, MSc, and the KEN Secretariat (Dr. B. Cizelj).
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