China’s Central State Corporatism: the Party and the Governance of Centrally Controlled Businesses
Chapter in an edited book (author)

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AbstractChina’s economic reform in the recent decades has led to the rise of a group of giant business groups and financial institutions under the central Party-state’s control. Strategic industries such as oil, power generation, telecommunication, aerospace, aviation, nuclear and banking dominate the group and occupy the “commanding heights” of the Chinese economy. However, literature on the institutional evolution of China’s central state-owned enterprises and the role of the Chinese Communist Party (CCP) in shaping and governing these enterprises is lacking and the subject area is under-researched. This chapter examines how the relations between the Party and central state-owned enterprises (yangqi) have evolved as the economic governance system in China shifts away from bureaucratic administration to more complex forms of ownership, regulation and control. By studying the case of China and the CCP in the historical context of “late development,” the analysis provides a stylized characterization of the different patterns of state–big business relations during the catch-up phase and mature phase of industrial development. There is evidence that China is now at a transitional stage between the two phases. Reviews of policy debates on Party–enterprise relations in transition economies indicate that the governance system of China’s yangqi sector can be characterized as a distinctive model of “central state corporatism,” under which the central state-owned enterprise sector as a whole resembles a giant diversified business group, with the Party center resembling the headquarters holding the ultimate authority, the Party-appointed technocrats acting as corporate managerial elites, and each “yangqi” like a business division of this overall structure. Specifically, this chapter analyzes the Party’s roles in organizational entrepreneurship and leadership talent management in China’s central state corporatism.
All Author(s) ListLI Chen
All Editor(s) ListLance L.P. Gore, Zheng Yongnian
Book titleThe Chinese Communist Party in Action: Consolidating Party Rule
Series TitleChina Policy Series
Place of PublicationLondon and New York
Pages220 - 239
LanguagesEnglish-United Kingdom

Last updated on 2020-11-09 at 11:16