Strategic ambiguity in policy formulation: exploring the function of the term “township and village enterprises” in china’s industrial ownership reforms

Abstract Ambiguity in policy formulation is a strategy setup with multifarious institutional flexibilities that maintain the credibility of functioning institutions. In the framework of the ‘credibility thesis’ as introduced by Peter Ho, this article posits that Chinese policymakers intentionally or unintentionally made a smart choice in coining the highly ambiguous term ‘TVEs’ for promoting institutional reforms on property rights, and providing a unique buffering effect for a (comparatively) smooth policy transition towards increasingly liberal reform agendas. Furthermore, TVEs’ content was evolving through time and consistently adapting to the interactions among various stakeholders in the reform process. The conceptual ‘3C’ model of strategic ambiguity in policy formulation elaborated by the evidence of TVEs might be an approach for China’s policy studies.