Guang Shen writes that China and the EU’s multilevel governance structures have led to challenges in preventing lower-level political entities from impeding capital mobility. Licensing barriers created by local governments in China, Shen argues, restrict the inter-provincial establishment of companies. Shen writes that the EU, in contrast, has benefited from a strong effort to facilitate the cross-border establishment of businesses. Shen asserts that rules defined by the central legislative authority in China would improve the nation’s regulatory effectiveness. Read more here.
