Developmentalism Without a Playbook: Grassroots Government and the Rise of E-Commerce in Peri-Urban China

This study examines how a grassroots government in peri-urban China facilitated the rise of e-commerce as a driver of local development. Drawing on a single-case study of L Town in X County, based on multi-year fieldwork and more than 100 interviews, we identify three stages through which the local state cultivated this nascent industry: understanding the market through surveys and experiential learning; assisting the market by promoting industrial clustering, strengthening human capital, and reducing costs; and planning market upgrades by cultivating regional brands and increasing product value. Our evidence further suggests that officials’ motivations extended beyond career advancement and fiscal incentives: concerns with social reputation and local visibility complemented material considerations. By tracing how a resource-poor township government promoted a frontier industry without an established governance playbook, this study extends the literature on local state entrepreneurialism and sheds light on state–market relations in China's rural e-commerce boom.