The Limits of Policy Diffusion: Introducing International Norms of Anti-Money Laundering into China's Legal System

This article examines the contribution of policy diffusion to create a regulatory system against money laundering in China. A two-level analysis of transnational interactions and domestic law making shows how Communist Party prerogatives shape the insertion of multilateral norms into the legal system. In a contentious process of local accommodation, transnationally engaged technocratic bodies, turf-conscious bureaucracies, and powerful party organs struggle to reconcile the goals of promoting global economic expansion, gaining international recognition, and absorbing innovative regulatory tools while preserving tight domestic control. In effect, Chinese policymakers try to utilize policy diffusion as a mechanism for negotiating and promoting the nation's global rise. Yet, when it comes to implementation, global regulatory standards are weakened or even neutralized through discretionary enforcement. The depth and robustness of normative assimilation therefore remain uncertain.