Solving Agency Problems in Chinese Universities: Academics in the Shadow of the Party’s Declared Leadership

Abstract How does the party-state exercise leadership over universities and manage the individuals embedded in the university system without restraining their capacity for excellence and innovation? I argue that the presidential responsibility system has resolved a fundamental agency problem in Chinese universities. The system is supported by a set of mechanisms designed to enforce loyalty to the leadership of the Chinese Communist Party. It can easily adapt to political changes and thus maintain authoritarian rule without compromising the overarching agenda of research excellence.