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Business, Government and Economic Institutions in China pp 255–279Cite as

Palgrave Macmillan

The Changing Business–State Relations in China: The View from Socialist Corporatism

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Part of the book series: International Political Economy Series ((IPES))

Abstract

By using socialist corporatism as a theoretical window, this study examines how China’s resilient Leninist institutions constrain substantial changes in government–business relations. It then discusses the government restructuring and economic downturn stemming from the 2008 global financial crisis onward as internal and external sources of emerging statist policy ideas, respectively. Institutionally, the changing balance of power in the state structure is emphasized in order to explain how China’s market regulation is shifting to a more inclusive one. The case of the recent anti-monopoly probing against the telecom giants is examined to support these arguments. The study concludes with a brief reflection on the nature of regulation in the Chinese political economy.

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Notes

  1. 1.

    This study distinguishes between corporate power and autonomy. As long as the Chinese state plays a role as “owner” of State-Owned Enterprises (SOEs) , politicized corporate governance , exercised through the right to appoint top executives of the firms, and ad hoc interventions or pressures are certainly likely to constrain the decision-making autonomy of the SOEs ; yet, it should be noted that such a constrained corporate autonomy does not unilaterally determine/decide their ability to influence the decision-making and implementation.

  2. 2.

    Since Xi Jinping’s policy of fight against corruption , without exception, the former leaders of the NOCs were investigated and ousted from the CCP with corruption charge. The major examples include Zhou Yongkang and Jiang Jiemin.

  3. 3.

    Refer to Pearson (2011), China’s sheer continental size tends to generate economic tiers: top, middle, and bottom. The strategically most important leading sectors fall under the top-tiered sector.

  4. 4.

    The author appreciates Wu Yongping’s very important remark on this point. According to him, any analysis that dismisses the impact of the CCP on government–business relations in China would lose the validity of arguments.

  5. 5.

    Schmitter distinguishes two major variants of corporatism: state and societal.

  6. 6.

    For more information, please refer to Pearson (2005, 2007, 2011), Yukyung Yeo (2009) and Dali Yang (2004).

  7. 7.

    I appreciate one scholar in the Development of Research Centre of the State Council for this insight. Correspondence from Beijing (January 2015).

  8. 8.

    Interviews in the Institute of Enterprise of DRC, Beijing (2011, 2012).

  9. 9.

    Interviews in the Institute of Enterprise of DRC, Beijing (2012, 2013).

  10. 10.

    Author’s interview with a Beijing-based official in the Development Research Centre of the State Council by correspondence (January 2015).

  11. 11.

    Its official functions are available at http://en.ndrc.gov.cn/mfndrc/

  12. 12.

    Regarding the evolution of role of the “planning ” in Chinese economic reform and the development of NDRC, refer to Sebastian Heilmann and Oliver Melton (2013).

  13. 13.

    Hong Kong Economic Daily (11 March 2010).

  14. 14.

    Zhongguo tongxin qiye xiehui, “Xiehui jianjie (Brief Introduction for Associate),” May 13 (2006), http://www.cace.org.cn/new/content/2006-05/13/content_866410.htm

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Authors and Affiliations

  1. College of International Studies, Kyung Hee University, Seoul, South Korea

    Yukyung Yeo

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Editors and Affiliations

  1. Alliance Manchester Business School, University of Manchester, Manchester, United Kingdom

    Xiaoke Zhang

  2. Institute for Advanced Study in Humanities and Social Sciences, Zhejiang University, Hangzhou, Zhejiang, China

    Tianbiao Zhu

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Yeo, Y. (2018). The Changing Business–State Relations in China: The View from Socialist Corporatism. In: Zhang, X., Zhu, T. (eds) Business, Government and Economic Institutions in China. International Political Economy Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-64486-8_9

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