For anyone doing business in China, understanding the relationship, differences and interplay between the central and local governments is critical.

FORBES

The first is the relationship between the state and local governments.

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Official responsibility for housing is split between federal, state and local governments.

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The nonprofit Code for America initiative is helping accelerate civic coding by fostering collaboration between coders, local or state governments, and community groups to solve problems.

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Fortunately, the long history of successful co-operation between the two countries and among local governments suggests these threats can be managed.

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There's been extraordinarily close coordination between state, federal, and local governments.

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As long as we keep fortifying partnerships between Federal, State, and local governments and among community leaders and the private sector, we can continue to modernize our critical infrastructure and bolster our ability to overcome whatever challenges we may face.

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Between them, China's central and local governments own over 100, 000 companies and implicitly favour many more.

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Also, the use of investment platforms (special investment vehicles) to fund local governments steers funds to SOEs involved in development projects, thereby affecting the balance between state and market.

FORBES: China's Challenge: Balancing the State and Market