Local States in World Markets: Economic Security in an Interdependent World

• In Event: Great Powers and Tech Industries in a Globalized World

Abstract

Chinese economic policies increasingly emphasize national security and resilience in critical supply chains. While the national economic agenda increasingly frames globalization as a source of vulnerability rather than opportunity, how do local governments react to the call for securitizing the economy? This paper examines how local governments in China have been implementing the central government's shift toward greater self-reliance and securitization. Using an original dataset of local government policies combined with fine-grained economic data, it explains why a locality's degree of embeddedness in global supply chains, alongside perceptions of political risk, shapes its available strategies for navigating between central guidelines and the international economy. Its findings shed light on the degree to which China is "decoupling" from the global economy and contributes to an emerging literature on "local states in world markets".

Author

• Yeling Tan, University of Oxford