The Political Logic of Corporate Governance in China's State-Owned Enterprises

40 Pages Posted: 5 Mar 2015

See all articles by Jiangyu Wang

Jiangyu Wang

City University of Hong Kong (CityU) - Centre for Chinese & Comparative Law

Date Written: December 1, 2014

Abstract

This paper adopts a political approach to analyze the relationship between the state and state-owned business in China, focusing on the corporate control and governance of state-owned enterprises (SOEs). It aims to explain the political logic behind the Party -- state's achievements in introducing market reforms through communist political institutions and to discuss their implications for future SOE reform in China. It argues that SOE reform is part of the CCP's effort to rebuild and maintain political legitimacy of the Chinese Party-state. In other words, the management of legitimacy to strengthen the ruling position of the CCP is embodied in all major aspects of the governance structures of SOEs. Corporate governance in Chinese SOEs is a system in which the components come from different countries of origin, but are installed together to ensure the whole system runs in a way that not only economically benefit the owner but also stay within the owner's control.

Keywords: China, SOE, state-owned enteprise, corporate governance, CCP, legitimacy management

JEL Classification: K22, P26, D72

Suggested Citation

Wang, JiangYu, The Political Logic of Corporate Governance in China's State-Owned Enterprises (December 1, 2014). Cornell International Law Journal, Vol. 47, No. 3, 2014, Available at SSRN: https://ssrn.com/abstract=2574111

JiangYu Wang (Contact Author)

City University of Hong Kong (CityU) - Centre for Chinese & Comparative Law ( email )

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Room P5300, 5th Floor, Academic 1
Kowloon Tong
Hong Kong
34427026 (Phone)

HOME PAGE: http://www.cityu.edu.hk/slw/people/people_wang_jiangyu.html

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