BRYAN CAPLAN
May 7, 2013
Keynesian Bets: What's Out There
May 6, 2013
Keynesian Bets Bleg
May 6, 2013
The Pyramid of Macroeconomic Insight and Virtue
May 2, 2013
A Natalist Provision
May 1, 2013
I Was a Teenage Misanthrope
DAVID HENDERSON
May 5, 2013
John Thacker on Vaccinations and the Sequester
May 3, 2013
Chef Rudy's Virtues Project
May 2, 2013
My take on Reinhart and Rogoff
May 1, 2013
Medicare Kills a Program


The central government of China has serious issues enforcing its will on local governments, and always has. This is a widely acknowledged fact - in fact there is a saying from the past that "the mountains are high and the emperor is far away".
There is nothing contradictory or oxymoronic here - private citizens in China have little recourse against mistreatment by government at any level, but the central government requires cooperation of local officials to enforce its will in the provinces. An autocratic government is not the same thing as an omnipotent (or even competent) government.
Local government officials openly flout central government regulations. They routinely ignored banking regulations, for instance making loans for stock investment, although those were recently curbed. There was a case a few years ago of a gigantic steel mill under contruction which would have equaled the output of all U.S. mills combined, but the central government stopped it. This article discusses similar cases.
"..weird to think of this happening in China. Somehow, the weak central government of China seems like it ought to be an oxymoron.."
A little reading of China history should dispel this notion. China's problem has always been too much local control.
The mountains are tall and the Emperor is far away runs the old Chinese saying. The Chinese system, by fairly ancient tradition, is a sort of Matrioshka Fiefdom, a government set up like a string of Christmas-tree-lights. The Center issues broad directives that are handed to more localized officials who issue more specifics to their subordinates in accordance with their own judgment. There aren't really any normal, parallel reporting or accountability systems in place- as long as the guy above you has 'got your back,' you can operate with relative impunity.
And incidentally, it's NDRC, not "NRDC".