Abstract：This research attempts to join the discussion on how structure and agency relate through a study of the local political economy in Northern China. Using the historical narrative method, the study focuses on the "process", as well as the actions. It examines the strategies the actors adopted and how they were chosen. The research finds that, under the mutual influence of Central Government and Tianjin Municipal Government, Tianjin chose a dual strategy to develop its economy. Central Government played a key role in this process, it argues, but Tianjin Municipal Government still had its autonomy. Because although Tianjin's preferences were close to the one of Central Government, Tianjin still had the freedom to choose its behavior way, which based on its knowledge, preference etc. Moreover, the difference of the action between the actors can rise into conflict, as well as compromise and cooperation. Whether conflict or compromise and cooperation happens at last, it depends on how deep it explores into the details of the interaction between the actors.
