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Federalism, Chinese Style

Lizhi Liu and Barry R. Weingast write that because China lacks a strong legal infrastructure, businesses there are much more vulnerable than business ventures in the United States or Europe. The authors suggest that the Chinese central government, in what the authors term “federalism, Chinese style,” has essentially ceded responsibility for dispute resolution, fraud prevention, and other issues to private online marketplaces that are rapidly developing their own legal infrastructures. Read more here.