• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Trump, House GOP Leadership Lose Fight To Block Iran War Powers Resolution

June 3, 2026

Warrant Issued For Brandon Aiyuk’s Arrest, Officials Say

June 3, 2026

Jimmy Kimmel Triggered After Trump Predicts He’s Next Late-Night Host to Go After ‘REALLY DUMB’ Colbert Cancelled

June 3, 2026
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Wednesday, June 3
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Trump, House GOP Leadership Lose Fight To Block Iran War Powers Resolution

    June 3, 2026

    Marco Rubio Busted Lying To Congress About Trump Sleeping During Meetings

    June 3, 2026

    Jill Biden Seemingly Knew About October 7 Attack Before Joe Did

    June 3, 2026

    GOP Congressmen React To Dems Publicly Plotting A Supreme Court Power Grab

    June 3, 2026

    Paralympic gold medalist Josh Turek wins Iowa Senate primary with establishment support

    June 3, 2026
  • Health

    How vaccine and Covid backlash is impacting ebola response

    June 3, 2026

    A New Market For A Century-Old Test

    June 3, 2026

    Public health journal issues rallying cry on ultra-processed foods

    June 3, 2026

    Knicks Karl-Anthony Towns, Pivotal In NBA Finals, Talks Pain And Recovery

    June 3, 2026

    Military body, hantavirus, ultra-processed: Morning Rounds

    June 3, 2026
  • World

    U.S. Strikes Iran Military Sites as Kuwait Hit by Drone and Missile Fire

    June 3, 2026

    CBS News Fires Scott Pelley

    June 3, 2026

    Majority of Italians Open to Nuclear Power amid Rising Energy Costs

    June 3, 2026

    MAGA Wannabe Senator Mike Rogers Torched Over ‘Humiliating’ AI Pic

    June 3, 2026

    Mexican Cops Find New Massive Narco-Tunnel in Tijuana

    June 3, 2026
  • Business

    Another Major Company Flees From Blue State To Texas

    June 3, 2026

    Hollywood Scheming To Tank Paramount’s Bid For Warner Bros. Discovery

    June 3, 2026

    Shipping Magnate Says Iranian Tolls Worth It To Open Strait of Hormuz

    June 3, 2026

    Patagonia Begs Drag Queen Influencer To Stop Allegedly Using Their Logo

    June 3, 2026

    First Quarter GDP Revised Downward As Voters Fret Over Economy

    May 28, 2026
  • Finance

    69-year-old furniture store chain files for Chapter 11 bankruptcy

    June 3, 2026

    Trump’s New AI Order Raises the Stakes in China-US Tech Competition

    June 3, 2026

    Bitcoin to slump to new lows after recent sell-off, traders predict

    June 3, 2026

    How a $500,000 Position in Senior Loan ETFs Quietly Pays $35,000 a Year With a Built-In Inflation Hedge

    June 3, 2026

    Morgan Stanley to open its wealth management funnel to agents

    June 3, 2026
  • Tech

    Cognizant CEO Criticizes AI ‘Tokenmaxxing’ Trend, Commits to Hiring 20,000 College Grads

    June 3, 2026

    What April Job Openings Tell Us About AI

    June 3, 2026

    China Begins Banning AI Videos That ‘Vulgarize’ Regime-Approved Media

    June 3, 2026

    If China Wins the AI Race, They Will Export Repressive Technology Worldwide

    June 3, 2026

    Sam Altman and OpenAI Concealed ChatGPT Safety Concerns

    June 3, 2026
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»Changing Cadre Incentives: The Untold Story of China’s Economic Challenge
Finance

Changing Cadre Incentives: The Untold Story of China’s Economic Challenge

December 7, 2024No Comments8 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Changing Cadre Incentives: The Untold Story of China’s Economic Challenge
Share
Facebook Twitter LinkedIn Pinterest Email

Despite the optimistic tone of government propaganda, the Chinese economy is facing serious challenges. Conversations with ordinary people in China reveal a pervasive sense of pessimism. Almost everyone has a story about how the economic downturn has made their lives more difficult. Some even openly hold the government accountable for the tough situation. Chinese officials, from Shanghai to Henan, have commented on the sluggish economy, describing the situation as “daunting.” A Henan official even disclosed that between 70 and 80 percent of this year’s new college graduates are unable to find jobs.

The dominant explanations for China’s economic difficulties focus on structural economic challenges or fiscal and monetary policies. The Chinese government has introduced policies to address these issues. However, this article examines China’s economic challenges from a different perspective, arguing that the local cadre incentive structure is a crucial yet often overlooked factor in the performance of the Chinese economy.

The Cadre Incentive Structure and Economic Growth

The study of the cadre incentive system has been central to understanding China’s economic growth. According to Kevin O’Brien and Li Lianjiang, local cadres in China are assigned numerous responsibilities and targets under the cadre responsibility system. These targets are divided into two categories: “hard targets,” which are binding and involve measurable outcomes, and “soft targets,” which are non-binding and lack measurable criteria. Local leaders consistently prioritize achieving hard targets over soft ones because the former carry greater weight in performance evaluations. 

Among these, GDP growth has been the most significant hard target. In many cases, it becomes a veto target, meaning failure to meet the GDP growth target can override and nullify all other accomplishments. Consequently, this intense focus on GDP growth spurred tournament-style competition among local governments, with officials adopting growth-maximization strategies to enhance their promotion prospects.

Other scholars have further explored the relationship between economic growth and the cadre incentive structure. Lynette Ong demonstrated that economic targets, such as GDP growth and local debt levels, influence local officials’ policy decisions, such as favoring lending to state-owned enterprises (SOEs) over private companies.

Yuen Yuen Ang’s research highlighted the power of cadre incentives to stimulate local economies. All cadres, regardless of their specific roles, are required to meet investment attraction targets, resulting in a policy orientation hyper-focused on economic development. 

Similarly, David Bulman showed that the cadre incentive system is the most critical factor in local economic growth. His study found that among six townships with identical geography, climate, and resources, those prioritizing GDP growth outperformed those focused on maintaining stability. 

See also  Brazilian Influencers on China’s TikTok Get Famous for Racist ‘Banana’ Videos Against Children

Economic Development Is No Longer a Priority

However, recent interviews reveal a significant shift in the cadre responsibility system, a change that has had a profound impact on economic growth. Local cadre incentives, once instrumental in driving economic growth, now hinder it. Economic development is no longer a priority for local cadres.

The first major change in the cadre evaluation system is the de-emphasis of individual responsibility and the rise of “collective” responsibility. Under the new system, cadre evaluations are divided into two categories. The first category is individual evaluation, which assesses cadres based on five criteria: “morality,” “capability,” “hardworking,” “performance,” and “incorruptibility” (德能勤绩廉). Despite “performance” being one of the five criteria, actual job performance is not measured at the individual level. 

One local official noted that, unlike Key Performance Indicators (KPIs) in private firms, individual evaluations in the government are highly subjective. As long as cadres show up to work and avoid committing crimes, anyone can pass their individual evaluation. After all, as the cadre remarked, “We are all co-workers and CCP members; how can anyone tell who is better than the others?”

The real performance evaluation occurs at the office level. For example, in the case of investment attraction, a key local indicator according to Yuen Yuen Ang, the responsibility for meeting investment attraction targets falls on the local investment attraction office, rather than on individual cadres. As a result, the higher-level government evaluates the office as a whole, rather than individual performance. 

In practice, this means that the head of the office is held accountable if the office fails to meet its investment attraction target. Individual office workers are not directly blamed. While they may receive reprimands from their office leaders – a punishment they often consider “nothing” – they will not face additional penalties, such as a reduced salary or a demerit on their personal file.

The new cadre evaluation system has significantly reduced the incentives for local cadres. By removing individual incentives from the evaluation process, cadres have lost their self-motivation for work. Many describe their daily work life as “striking the bell every day like a monk” (当一天和尚,撞一天钟), meaning they are passively carrying out their duties. This issue has become particularly salient since local governments abolished performance-related bonuses in order to formalize the cadre salary system and reduce cadres’ “grey zone earnings.” Hitting targets no longer translates into material gains for local cadres. 

See also  Here are the 7 signals that suggest a 'bullish cocktail' is about to power a surprise rally in the stock market

In particular, older cadres in lower offices are often the least motivated to work. Having passed the age cut-off for promotion, they see no prospects for career advancement. However, they cannot be dismissed due to China’s life-tenure civil service system. As a result, they have little incentive to complete tasks and tend to “muddle through” (混) the rest of their careers until retirement. One young cadre described them as “sneaky” (油), doing the bare minimum while avoiding responsibility. 

Their leaders, often younger, have limited means to direct them. Since age and seniority carry weight in the system, younger office leaders are also reluctant to command older cadres and tend to leave them alone. A former CCDI official remarked that even inspection teams ignore them. 

Consequently, a cadre from Shanghai commented, “I am 40 now, and this is my last chance for promotion. If I don’t get promoted in the next five years, I’ll lay flat. Why should I care anymore? If my superior tells me to do something, I’ll yell back.”

Increased Inspections

Another change in the evaluation system is the growing number and importance of top-down inspections. The previous cadre evaluation system, as described by many scholars, was outcome-focused. Cadres were allowed to use any means necessary to meet numerical targets within the evaluation framework. As a result, local governments often infringed on citizens’ legitimate rights in order to achieve these goals. Reflecting on this period, a local cadre described local governments as “nothing really different from gangs and mobs.” The mob-like nature of local government was one of the reasons behind the widespread local mass incidents in the 2000s and early 2010s.

As a result, the Chinese government introduced top-down inspections to monitor the task completion process. Typically, these inspections audit local accounts and money flows, as well as review the official documents at each step of policy implementation. One local official explained these inspections with an example: Before the inspection system was introduced, if a township had a policy to help farmers raise pigs, the inspection would only focus on whether each family owned pigs. As long as each family had pigs, everything would be considered fine. Now, in addition to evaluating the final outcome, the inspection focuses on each step of the implementation process, from the bidding documents for pig procurement to photos of pigs being distributed to each family.

See also  Stocks moving big after hours: DIS, BYND, HOOD

These inspections have significantly reduced illegal activities during the policy implementation process, and local officials now view themselves as much less “mob-like.” However, these inspections have also caused significant delays in policy implementation. Not only must officials ensure they follow the rules carefully, but they must also leave traces of completion at each step of the policy implementation process. 

As a result, local officials often find themselves overwhelmed with paperwork. In fact, leaving perfect traces of paperwork to satisfy inspections has even become more important than completing the task itself. Combined with the lack of individual incentives, many officials believe that their only responsibility is paperwork, and that the success of the policy has little to do with them.

The need to follow rules has also led to the end of many extralegal practices that had been nevertheless proven economically effective for decades. For example, the Third Plenary Session of the 20th Party Congress reiterated the ban on “illegal industrial policies,” such as attracting businesses with “excessive tax incentives.” At the local level, tax bureaus zealously investigate tax breaks and subsidies. As one commerce bureau official complained, these tax bureau officials are like “detectives investigating criminals.” 

As a result, local governments have lost one of their most effective tools in investment attraction. Even though local governments try to get creative and find other ways to use subsidies and incentives to attract investment, commerce bureau officials complained that the tax bureau “makes the investment attraction job difficult, particularly at a time when the economy is so bad.”

The Chinese economy is, first and foremost, political; political factors such as cadre incentives are crucial for understanding China’s economic development. For a long time, China’s rapid growth depended on pro-growth local officials who were eager to adopt growth-maximization policies. However, the situation has changed, and cadres are now completely different. They have minimal interest in pursuing growth; instead, they focus on completing paperwork and dealing with inspections. The cadre evaluation system further discourages officials from actively taking responsibility and completing tasks, creating cadres who are indifferent to any outcomes, including economic growth.

Cadre Challenge Changing Chinas Economic Incentives story Untold
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

69-year-old furniture store chain files for Chapter 11 bankruptcy

June 3, 2026

Trump’s New AI Order Raises the Stakes in China-US Tech Competition

June 3, 2026

Bitcoin to slump to new lows after recent sell-off, traders predict

June 3, 2026

How a $500,000 Position in Senior Loan ETFs Quietly Pays $35,000 a Year With a Built-In Inflation Hedge

June 3, 2026
Add A Comment

Leave A Reply Cancel Reply

Top Posts

‘Business Booming’ for Ex-Facebook ‘Disinformation’ Experts amid Wars

November 18, 2023

JPMorgan Chase CEO Jamie Dimon has ‘no plans’ to run for office

June 6, 2023

Hundreds Flee Haiti’s Capital, Hospitals Shuttered amid Surge of Gang Violence

May 15, 2026

Mark Zuckerberg’s Fiddling with the Facebook Algorithm Is Sending Shockwaves Through the Media

January 25, 2024
Don't Miss

Trump, House GOP Leadership Lose Fight To Block Iran War Powers Resolution

Politics June 3, 2026

President Donald Trump and House Republican leaders lost their attempt to defeat a Democratic-led war…

Warrant Issued For Brandon Aiyuk’s Arrest, Officials Say

June 3, 2026

Jimmy Kimmel Triggered After Trump Predicts He’s Next Late-Night Host to Go After ‘REALLY DUMB’ Colbert Cancelled

June 3, 2026

WNBA Writer Claims His Press Credentials Were Revoked for Report on Caitlin Clark Injury

June 3, 2026
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,375)
  • Entertainment (4,876)
  • Finance (3,639)
  • Health (2,195)
  • Lifestyle (1,890)
  • Politics (3,434)
  • Sports (4,382)
  • Tech (2,208)
  • Uncategorized (4)
  • World (4,716)
Our Picks

‘Do Not Wish Good Things For Me’: Elon Musk Explains Why He Thinks The Biden Admin Could Be Out To Get Him

September 14, 2023

Versant Sells SportsEngine to Playmetrics

May 1, 2026

Chinese carmaker BYD to buy US firm Jabil’s mobility business for $2.2 bln

August 28, 2023
Popular Posts

Trump, House GOP Leadership Lose Fight To Block Iran War Powers Resolution

June 3, 2026

Warrant Issued For Brandon Aiyuk’s Arrest, Officials Say

June 3, 2026

Jimmy Kimmel Triggered After Trump Predicts He’s Next Late-Night Host to Go After ‘REALLY DUMB’ Colbert Cancelled

June 3, 2026
© 2026 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.