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Outsourcing Property Rights: How China Sustains Pharmaceutical Innovation Under Domestic Cost Control


Speaker: Victoria Liu, PhD candidate in Political Science, Stanford University

China is the world’s second-largest biotech innovator, yet it enforces some of the most aggressive drug price controls. National procurement reforms since 2019 have cut drug prices by over half, significantly reducing the profit margins typically required to fund R&D. How does China sustain a booming biotech sector while enforcing aggressive domestic price controls? I show that Chinese pharmaceutical industry thrives by “outsourcing property rights.” Chinese firms utilize domestic resources for early-stage R&D, but rely on overseas licensing to capture revenue. This allows the state to enforce severe cost-containment at home while firms monetize their innovation on the global market.


About the Workshops


Our Young Researcher Workshops offer emerging China scholars an opportunity to engage directly with interdisciplinary faculty and peers from across campus to discuss and receive feedback on their research. Each workshop features one or several PhD students presenting their latest empirical findings on issues related to China’s economy. Past topics have included college major selection as an obstacle to socioeconomic mobility, the effect of a cooling-off period on marriage outcomes, and factors contributing to government corruption. Faculty and senior scholars provide comments and feedback for improvement. This event series helps to build and strengthen Stanford’s community of young researchers working on China.

Workshops are held on select Fridays from 12 - 1 pm. Lunch will be provided! 

Visit the Young Researcher Workshops webpage for more information on the content and format of the series and to learn how to sign up to present. 

Goldman Room, Encina Hall, E409

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Environmental and Health Effects of the World’s Largest Afforestation Program


Speaker: Artemis Yuanxiaoyue Yang, Visiting PhD candidate, Stanford Center on China’s Economy and Institutions

Air pollution carried by the wind poses serious threats to public health in areas located downwind of pollution sources. In response, governments and organizations have adopted geoengineering strategies such as artificial afforestation to mitigate these adverse effects. Combining atmospheric dispersion modeling and quasi-experimental approaches, this study quantitatively evaluates the health benefits of the Three-North Shelterbelt Project (TNS) - the world’s largest government-funded afforestation initiative - which aims at restoring 356,123 km2 of forests, equivalent to the area of Germany, across Northern China from 1978 to 2050. We compile a comprehensive dataset from multiple sources, including satellite-based land use, vegetation indices, and air pollution, and administrative records of mortality. Initial results suggest that a one km^2 increase in policy-induced vegetation cover reduces PM2.5 concentrations by 0.354 μg/m^3 and yields $117,919 of health benefits.


About the Workshops


Our Young Researcher Workshops offer emerging China scholars an opportunity to engage directly with interdisciplinary faculty and peers from across campus to discuss and receive feedback on their research. Each workshop features one or several PhD students presenting their latest empirical findings on issues related to China’s economy. Past topics have included college major selection as an obstacle to socioeconomic mobility, the effect of a cooling-off period on marriage outcomes, and factors contributing to government corruption. Faculty and senior scholars provide comments and feedback for improvement. This event series helps to build and strengthen Stanford’s community of young researchers working on China.

Workshops are held on select Fridays from 12 - 1 pm. Lunch will be provided! 

Visit the Young Researcher Workshops webpage for more information on the content and format of the series and to learn how to sign up to present. 

Goldman Room, Encina Hall, E409

Artemis Yuanxiaoyue Yang, Visiting PhD candidate, Stanford Center on China’s Economy and Institutions
Workshops
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Acceptability and Feasibility of a Mindfulness Course for College Students in China


Speaker: Cody Abbey, PhD Candidate in Graduate School of Education, Stanford University

The college years are a crucial developmental stage during which mental conditions often emerge, including anxiety disorders and depression. Thus, it is crucial that college students have access to resources that help them develop skills for adapting to stressors and flourishing in their new environments. Unfortunately, in settings such as China, hard-to-access mental health services and a paucity of wellness courses often prevent students from receiving the support that they need. This study explores the lived experiences of undergraduates at two universities in China in a mindfulness-based program adapted for the local college student context. Specifically, this research explores three areas related to participants’ experiences: (1) how students believed their participation in the program affected their everyday life and well-being; (2) any factors that students perceived as affecting their participation; (3) recommendations for future iterations of the program. Using qualitative data from semi-structured interviews conducted with 18 of the college student participants, an applied thematic analysis was administered. This study also triangulates this data with open-ended responses from all 41 students who took the endline survey. Preliminary analyses indicate that students experienced positive psychosocial benefits from participating in the program. While they found support from the instructors and classmates facilitated their participation, time-and space-related barriers were hindrances. Recommendations include daily check-ins and reminders to practice, increasing class time dedicated to small-group discussion, and more flexible “home practice” requirements.


About the Workshops


Our Young Researcher Workshops offer emerging China scholars an opportunity to engage directly with interdisciplinary faculty and peers from across campus to discuss and receive feedback on their research. Each workshop features one or several PhD students presenting their latest empirical findings on issues related to China’s economy. Past topics have included college major selection as an obstacle to socioeconomic mobility, the effect of a cooling-off period on marriage outcomes, and factors contributing to government corruption. Faculty and senior scholars provide comments and feedback for improvement. This event series helps to build and strengthen Stanford’s community of young researchers working on China.

Workshops are held on select Fridays from 12 - 1 pm. Lunch will be provided! 

Visit the Young Researcher Workshops webpage for more information on the content and format of the series and to learn how to sign up to present. 

Goldman Room, Encina Hall, E409

Cody Abbey, PhD Candidate in Graduate School of Education, Stanford University
Workshops
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Supply Chain Structure and the Rise of China's Electric Vehicle Industry


Speaker: Weiting Miao, Postdoctoral Scholar, Environmental Social Sciences, Stanford Doerr School of Sustainability

China has emerged as the global leader in electric vehicles (EVs), with a substantial price advantage relative to other major economies. This research studies how the density and geographic proximity of the supply chain contribute to this advantage. Using transaction-level buyer–seller data from the Chinese auto industry, we show that supplier proximity increases matching probability and that greater input market thickness lowers input prices. Exploiting policy exposure as an instrument, we further document that shorter buyer–supplier distance reduces prices while improving quality. Motivated by these findings, we develop and estimate a structural model that integrates upstream matching and pricing with downstream competition under heterogeneous consumer demand. The model quantifies how alternative market structures affect equilibrium outcomes. When we adjust China’s supply chain and product structure to match the 2018 US market, EV parts costs increase by about 60%, final vehicle prices rise by roughly 50%, and sales decline by 57%.


About the Workshops


Our Young Researcher Workshops offer emerging China scholars an opportunity to engage directly with interdisciplinary faculty and peers from across campus to discuss and receive feedback on their research. Each workshop features one or several PhD students presenting their latest empirical findings on issues related to China’s economy. Past topics have included college major selection as an obstacle to socioeconomic mobility, the effect of a cooling-off period on marriage outcomes, and factors contributing to government corruption. Faculty and senior scholars provide comments and feedback for improvement. This event series helps to build and strengthen Stanford’s community of young researchers working on China.

Workshops are held on select Fridays from 12 - 1 pm. Lunch will be provided! 

Visit the Young Researcher Workshops webpage for more information on the content and format of the series and to learn how to sign up to present. 

Goldman Room, Encina Hall, E409

Weiting Miao, Postdoctoral Scholar, Environmental Social Sciences, Stanford Doerr School of Sustainability
Workshops
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Patients' Value of Physician Continuity: Evidence from China


Speaker: Yuli Xu, Postdoctoral Fellow, APARC Asia Health Policy Program, Stanford University

Continuity of medical care is widely observed, but it is often difficult to disentangle patients’ intrinsic preferences from system-imposed switching costs. Our research exploits the Chinese healthcare setting, where patients can freely choose physicians at each visit and flexibly switch across hospitals and departments, to isolate patients’ value of physician continuity. Estimating a discrete choice model, we show that patients strongly prefer to see the same physician despite minimal institutional barriers to switching, indicating an intrinsic preference for continuity. We then examine how physicians’ temporary leave affects patient behavior using a stacked difference-in-differences design. A physician’s absence leads to significant reductions in patient visits, both within the physician’s department and across other departments in the same hospital, with no substitution toward other hospitals and no detectable effects on health outcomes. Patients return to their original physicians once they resume practice. Moreover, patients with more severe conditions incur higher spending when forced to see a new physician. Overall, our findings demonstrate that patients place substantial intrinsic value on physician continuity, even in a healthcare system with highly flexible provider choice.


About the Workshops


Our Young Researcher Workshops offer emerging China scholars an opportunity to engage directly with interdisciplinary faculty and peers from across campus to discuss and receive feedback on their research. Each workshop features one or several PhD students presenting their latest empirical findings on issues related to China’s economy. Past topics have included college major selection as an obstacle to socioeconomic mobility, the effect of a cooling-off period on marriage outcomes, and factors contributing to government corruption. Faculty and senior scholars provide comments and feedback for improvement. This event series helps to build and strengthen Stanford’s community of young researchers working on China.

Workshops are held on select Fridays from 12 - 1 pm. Lunch will be provided! 

Visit the Young Researcher Workshops webpage for more information on the content and format of the series and to learn how to sign up to present. 

Goldman Room, Encina Hall, E409

Yuli Xu, Postdoctoral Fellow, APARC Asia Health Policy Program, Stanford University
Workshops
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Institutional Barriers and Venture Finance Under Export Controls: Evidence from China’s High-Tech Sectors


Speaker: Yikai Cao, PhD Candidate in Management Science and Engineering, Stanford University

Export control measures have emerged as a critical institutional shock reshaping global political and economic dynamics. While prior studies have focused on how institutions shape entrepreneurial behavior and firm-level responses, our study adopts an institutional theory lens to examine the impact of export controls and industrial policy on venture capital (VC) investment decisions. Integrating firm-level financing data with policy analysis, we find that following export controls, domestic VC funding increases significantly and concentrates in key technological fields. To isolate the causal effects of these regulatory changes, we employ a difference-in-differences approach. Our findings contribute to institutional theory by demonstrating how regulatory shocks reshape investor risk-return assessments and provide valuable insights for policymakers and investors navigating geopolitical tensions.


About the Workshops


Our Young Researcher Workshops offer emerging China scholars an opportunity to engage directly with interdisciplinary faculty and peers from across campus to discuss and receive feedback on their research. Each workshop features one or several PhD students presenting their latest empirical findings on issues related to China’s economy. Past topics have included college major selection as an obstacle to socioeconomic mobility, the effect of a cooling-off period on marriage outcomes, and factors contributing to government corruption. Faculty and senior scholars provide comments and feedback for improvement. This event series helps to build and strengthen Stanford’s community of young researchers working on China.

Workshops are held on select Fridays from 12 - 1 pm. Lunch will be provided! 

Visit the Young Researcher Workshops webpage for more information on the content and format of the series and to learn how to sign up to present. 

Goldman Room, Encina Hall, E409

Yikai Cao, PhD Candidate in Management Science and Engineering, Stanford University
Workshops
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Yes, Standing Committee: Majority Rule in Non-Democracies


Speaker: Haokun Sun, PhD candidate, Cornell University; IvyPlus Exchange Scholar, Doerr School of Sustainability

The Chinese Communist Party (CCP) espouses a principle of collective leadership, in which the Politburo Standing Committee (PSC) makes important decisions by consensus. However, it is not known whether such a majority rule is employed in practice. This paper studies the appointment of party cadres into positions of power as a means of uncovering a general decision-making mechanism within the CCP. We provide reduced-form results showing that appointments are decided by the PSC, who selectively promote candidates in their social networks. This motivates a novel model of collective leadership in which PSC members play a coalition game to promote their preferred candidates. The majority rule is represented by a minimum constraint on the size of winning coalitions. Estimating our model, we show that appointments to positions above the vice-provincial minister level requires support from 75\% of the PSC members on average. This cut-off varies depending on the President in power, ranging from 50\% under Deng to 80\% under Jiang and Hu. Estimating political factions using modularity clustering, we find that factional penalties operate in parallel to the majority rule. Our method can be useful for understanding decision-making in non-democracies more generally.


About the Workshops


Our Young Researcher Workshops offer emerging China scholars an opportunity to engage directly with interdisciplinary faculty and peers from across campus to discuss and receive feedback on their research. Each workshop features one or several PhD students presenting their latest empirical findings on issues related to China’s economy. Past topics have included college major selection as an obstacle to socioeconomic mobility, the effect of a cooling-off period on marriage outcomes, and factors contributing to government corruption. Faculty and senior scholars provide comments and feedback for improvement. This event series helps to build and strengthen Stanford’s community of young researchers working on China.

Workshops are held on select Fridays from 12 - 1 pm. Lunch will be provided! 

Visit the Young Researcher Workshops webpage for more information on the content and format of the series and to learn how to sign up to present. 

Goldman Room, Encina Hall, E409

Haokun Sun, PhD candidate in Applied Economics, Cornell University
Workshops
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Effectively Targeting Perinatal Home Visiting Interventions: Estimating Heterogeneous Treatment Effects on Infant Hemoglobin, Breastfeeding, and Diet Using Sorted Effects


Speaker: Siva Balakrishnan, PhD, University of Nevada, Reno

In this paper, we explore heterogenous treatment effects (HTE) of a stage-based home counseling intervention on exclusive breastfeeding (EBF), child hemoglobin and dietary diversity (DDS). In a cluster randomized controlled trial, pregnant women and caregivers of infants <6 months of age were enrolled in intervention or control arms in rural Sichuan, China. Community health workers delivered educational modules tailored to participants’ stage of development for 12 months. A novel sorted effects method was used to estimate HTE. Individual treatment effects were modeled by regressing baseline characteristics, treatment, and interactions thereof on outcomes. Characteristics of the 20% most and 20% least affected families were compared using multiple t-tests and adjusted p-values to identify those associated with HTE. Evidence of HTE on outcomes was strong with significant individual CATE on EBF and DDS among the 20% most affected families. Mothers with higher baseline caregiving knowledge or who gave birth vaginally saw greatest increases in EBF. Mothers pregnant at baseline or with less social support saw the most benefits on hemoglobin. Mothers with lower caregiving knowledge had greatest increases in DDS. The evidence supports the use of stage-based curricula and targeting mothers from pregnancy to obtain the greatest increases in child hemoglobin. To improve overall effects on EBF, breastfeeding modules may need to adjust content for first-time mothers and those with low caregiving knowledge. Partnering with hospital staff may improve EBF, particularly after c-section. Engaging family members to strengthen maternal social support may improve infant DDS.


About the Workshops


Our Young Researcher Workshops offer emerging China scholars an opportunity to engage directly with interdisciplinary faculty and peers from across campus to discuss and receive feedback on their research. Each workshop features one or several PhD students presenting their latest empirical findings on issues related to China’s economy. Past topics have included college major selection as an obstacle to socioeconomic mobility, the effect of a cooling-off period on marriage outcomes, and factors contributing to government corruption. Faculty and senior scholars provide comments and feedback for improvement. This event series helps to build and strengthen Stanford’s community of young researchers working on China.

Workshops are held on select Fridays from 12 - 1 pm. Lunch will be provided! 

Visit the Young Researcher Workshops webpage for more information on the content and format of the series and to learn how to sign up to present. 

Goldman Room, Encina Hall, E409

Siva Balakrishnan, PhD, University of Nevada, Reno
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We are pleased to share the publication of a new volume, Cold War Refugees: Connected Histories of Displacement and Migration across Postcolonial Asia, edited by the Korea Program's Yumi Moon, associate professor in Stanford's Department of History.

The book, now available from Stanford University Press, revisits Cold War history by examining the identities, cultures, and agendas of the many refugees forced to flee their homes across East, Southeast, and South Asia due to the great power conflict between the US and the USSR. Moon's book draws on multilingual archival sources and presents these displaced peoples as historical actors in their own right, not mere subjects of government actions. Exploring the local, regional, and global contexts of displacement through five cases —Taiwan, Vietnam, Korea, Afghanistan, and Pakistan — this volume sheds new light on understudied aspects of Cold War history.

This book is an important new contribution to our understanding of population flows on the Korean Peninsula across decades.
Paul Chang
Deputy Director, Korea Program

The book's chapters — written by Phi-Vân Nguyen, Dominic Meng-Hsuan Yang, Yumi Moon, Ijlal Muzaffar, Robert D. Crews, Sabauon Nasseri, and Aishwary Kumar — explore Vietnam's 1954 partition, refugees displaced from Zhejiang to Taiwan, North Korean refugees in South Korea from 1945–50, the Cold War legacy in Karachi, and Afghan refugees.

Purchase Cold War Refugees at www.sup.org and receive 20% off with the code MOON20.

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Korean activists released from prison on August 16, 1945.
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Can the United States and Asia Commemorate the End of the Pacific War Together?

Within Asia, World War II memories and commemorations are not only different from those in the United States but also divided and contested, still shaping and affected by politics and nationalism. Only when U.S. and Asian leaders come together to mark the end of the Asia-Pacific war can they present a credible, collective vision for the peace and prosperity of this important region.
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Sociologist Gi-Wook Shin Illuminates How Strategic Human Resource Development Helped Build Asia-Pacific Economic Giants

In his new book, The Four Talent Giants, Shin offers a new framework for understanding the rise of economic powerhouses by examining the distinct human capital development strategies used by Japan, Australia, China, and India.
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Stanford Next Asia Policy Lab team members and invited discussants during a roundtable discussion in a conference room.
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Stanford Next Asia Policy Lab Probes Political Messaging and Public Attitudes in U.S.-China Rivalry

At a recent conference, lab members presented data-driven, policy-relevant insights into rival-making in U.S.-China relations.
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3d cover image of the book "Cold War Refugees," showing Asian refugees walking up from a beach, with boats in the background.
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The new volume, edited by Stanford historian Yumi Moon, examines the experiences of Asian populations displaced by the conflict between the United States and the Soviet Union.

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Heather Rahimi
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Imagine one test deciding your future. For millions of students in China every year, that test is the gaokao—the national university entrance exam and one of the most competitive educational systems in the world. Published by Harvard University Press in Fall 2025, The Highest Exam: How the Gaokao Shapes China, takes readers inside this high-stakes exam and uncovers how it has shaped families, careers, and even the nation itself.

Written by leading scholars Ruixue Jia and Hongbin Li, with writer and researcher Claire Cousineau, the book combines rigorous research with compelling personal narratives to reveal how the gaokao has become much more than a test: it is a tool to shape China’s society and economy.

The gaokao has long been considered one of the world’s most consequential educational exams. Each year, tens of millions of students sit for this high-stakes test that determines access to universities, career opportunities, and pathways of social mobility. The Highest Exam traces the gaokao’s historical origins and evolution, showing how it became deeply intertwined with China’s governance, social strata, and economy. 

Through empirical analysis and personal narrative, the book illustrates how the exam system reflects broader themes in Chinese society: the pursuit of meritocracy, the tension between equality and advantage, and the state’s reliance on education to reinforce legitimacy. The authors aptly identify China’s education system as a centralized hierarchical tournament, returning to this framework in each section of the book: family, state, and society. 

The Highest Exam also brings a comparative lens, contrasting China’s exam-driven system with education practices in the United States and beyond. It raises urgent questions about fairness, access, and the role of education in shaping societies—questions that resonate far beyond China’s borders.

Engaging and deeply researched, The Highest Exam is essential reading for anyone interested in education, global society, or the forces shaping the next generation.



About the Authors
 

Ruixue Jia is Professor of Economics at the School of Global Policy and Strategy, University of California, San Diego.

Hongbin Li is Co-director of Stanford Center on China's Economy and Institutions, and a Senior Fellow of Stanford Institute for Economic Policy Research (SIEPR) and the Freeman Spogli Institute for International Studies (FSI) at Stanford University.

Claire Cousineau is a writer and former researcher at the Stanford Center on China’s Economy and Institutions, she is currently pursuing her MBA at Duke University.



Availability


The Highest Exam: How the Gaokao Shapes China is available now for purchase from Amazon and elsewhere.  



Upcoming Book Event


Join us on Tuesday, October 21 at 4 PM (Pacific) for a fireside chat with co-authors Ruixue Jia and Hongbin Li. The fireside chat will be held in-person in the Bechtel Conference Center and livestreamed for virtual attendees. Learn More & Register
 


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A girl in China sits at a classroom desk taking a test.
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Hongbin Li Contributes to the WSJ and Previews New Book "The Highest Exam"

Co-authors Hongbin Li and Ruixue Jia write for the WSJ, "The Test That Rules Chinese Society: The gaokao is China’s college entrance exam, but it shapes the country and its people far beyond the classroom."
Hongbin Li Contributes to the WSJ and Previews New Book "The Highest Exam"
Book cover: Institutional Genes: Origins of China's Institutions and Totalitarianism by Chenggang Xu
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New Book by Chenggang Xu Unpacks the Deep Roots of China’s Totalitarian Regime

SCCEI Senior Research Scholar Chenggang Xu’s latest book, "Institutional Genes: Origins of China's Institutions and Totalitarianism", explores the origins and evolution of China's institutions and communist totalitarianism.
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Scott Rozelle, Xiaonian Xu, Loren Brandt, and Mary Lovely converse as the panelists during a SCCEI event.
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SCCEI Event Explores China’s Industrial Policy and Global Competition

During this SCCEI event, expert panelists Xiaonian Xu, Loren Brandt, and Mary Lovely shared insights on the historical context, current trends, and future implications of China’s economic strategy and its impact on global trade.
SCCEI Event Explores China’s Industrial Policy and Global Competition
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"The Highest Exam: How the Gaokao Shapes China", written by Ruixue Jia, Hongbin Li, and Claire Cousineau, combines rigorous research with compelling personal narratives to reveal how the gaokao has become much more than a test: it is a tool to shape China’s society and economy.

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