All over the world local governments engage in ‘decentral diplomacy’, which refers to the international relations of sub-state regions (Dams, 2022; Šimalčík, Šebok, Kalivoda, & Blablová, 2021)....Show moreAll over the world local governments engage in ‘decentral diplomacy’, which refers to the international relations of sub-state regions (Dams, 2022; Šimalčík, Šebok, Kalivoda, & Blablová, 2021). European regions often engage in decentral diplomacy with Chinese provinces because of the expected economic outcome. The question is often asked, however, how does a region economically make the most out of these relationships? This thesis studies the domestic state-local political dynamism that influences economic opportunities emerging from the provincial relationship with Jiangsu province. In an interview-based comparative case study using a most similar systems design, the Dutch province Noord-Brabant is compared to the Moravian Silesian Region in Czechia. Whereas these regions are comparable in certain aspects, of which their relationship to Jiangsu is the most important, this thesis makes the comparison studying three dissimilar factors: the extent of central-local coordination on China policy, the institutional structure of the regional relationships, and the local institutional bureaucratic effort. These factors are expected to explain the difference in economic opportunities emerged through the relationship with Jiangsu province. Studying the determinants of good interstate relations at the local level, this thesis finds that based on these two cases particularly the institutional structure of the regional relationships and the local institutional bureaucratic effort are important for economic opportunities emerged through the relationship with Jiangsu.Show less