Chinese federalism

Proposals for a federal Chinese state were first advanced in the 1920s, but these proposals proved to be unpopular. Many intellectuals argued that these proposals would limit the ability of China to fight off external invasion and would legitimize the rule of warlords.

More recently, some economists have argued that during the process of Chinese economic reform that mainland China has evolved into a de-facto federal state in which provinces have wide descretion to implement policy goals which are set by the PRC central government and in which provinces and localities actively compete with each other in order to advance economically.