Implementing “Xinshimin” : challenges in China’s Inclusive Financial Policy

This thesis investigates the implementation challenges of the “xinshimin” policy in China, focusing on its inclusive financial aspects. While previous reports have noted obstacles in its execution, this study delves into the underlying factors contributing to its inadequate implementation. Drawing insights from policy implementation theories, including Hill’s implementation study and Howlett, Tosum, and Qian’s policy process style theory, this research connects various aspects of policy implementation, such as the policy-making process, performance measurement and monitoring, inter-organizational relations, frontline workers’ behaviors, and dynamic implementation context. The study employs a qualitative methodology, which took place in Guangzhou in the years 2022 and 2023. Banking managers and staff were interviewed, alongside an analysis of important policy documents and meeting minutes. The findings reveal that implementing “xinshimin” policy initiatives is characterized by inconsistency, with fragmented relationships among key actors or stakeholders involved. A lack of cohesive policy-making processes across various government levels has reduced its effectiveness. Within the Chinese policy process, insufficient consensus-building has exacerbated the challenges inherent in the top-down policy approach. The study also highlights how the cautious responses and risk aversion of frontline organizations have impacted the overall effectiveness of policy implementation. By examining these multifaceted aspects, this research offers insights into policy implementation in China’s financial sector and provides a framework for understanding similar challenges in other policy domains. It sheds light on the complex interplay between various levels of government, financial institutions, and frontline workers, revealing how their interactions and responses shape policy outcomes. The findings underscore the importance of consensus-building and coherent policy-making processes in the Chinese context while also highlighting the impact of institutional risk aversion on policy effectiveness.