Competence-loyalty tradeoff under dominant minority rule: The case of Manchu rule, 1650-1911

•Manchusused a cross-ethnic strategy to rule China where Han elites were appointed to handle daily tasks andManchu superiors were assigned for oversight.•Higher governance complexityled to a higher likelihoodof cross-ethnic arrangements.•Cross-ethnic assignments were more frequent in regions where Han elitesaccumulatedmore discretionary power.•Cross-ethnic assignments wereassociated with better local economic development, more efficient policy execution, and enhanced recognition of imperialauthority.