Hostname: page-component-cd9895bd7-hc48f Total loading time: 0 Render date: 2024-12-27T02:17:35.541Z Has data issue: false hasContentIssue false
  • English
  • Français

Corporate Governance with Chinese Characteristics: Party Organization in State-owned Enterprises

Published online by Cambridge University Press:  31 January 2022

Kasper Ingeman Beck Open the ORCID record for Kasper Ingeman Beck [Opens in a new window]  and
Kjeld Erik Brødsgaard
Kasper Ingeman Beck*
Affiliation:
Department of International Economics, Government and Business, Copenhagen Business School, Frederiksberg, Denmark, and Sino-Danish Center for Education and Research, University of Chinese Academy of Sciences, Beijing, China
Kjeld Erik Brødsgaard
Affiliation:
Department of International Economics, Government and Business, Copenhagen Business School, Frederiksberg, Denmark. Email: [email protected].
*
Email: [email protected] (corresponding author).
Get access Rights & Permissions [Opens in a new window]

Abstract

This article analyses the role of the Chinese Communist Party (CCP) in the corporate governance of Chinese state-owned enterprises (SOEs), including a case study of a central-level SOE holding group. Relying on official documents, secondary literature and interviews with enterprise managers, government officials and academics, the article documents how the CCP has actively formalized its role in Chinese business by embedding itself in the corporate governance structure of SOEs. Through the application of Chinese indigenous administrative corporate governance concepts such as “bidirectional entry, cross appointment” and “three majors, one big,” the CCP has consolidated its dominance of enterprise decision-making procedures and personnel appointment and created a hybrid, Party-led model of corporate governance. While this hybrid model can secure enterprise compliance, communication with higher state and Party organs, as well as long-term development planning, it is unlikely to help solve SOE efficiency problems and may even undermine other SOE reforms.

摘要

摘要

本文以的非上市中央国有控股公司为例，分析了中国共产党在国有企业公司治理中的作用.本文通过搜集官方文件、次要数据以及与企业经理、政府官员和学者的访谈，分析了中共如何将其纳入国有企业的公司治理结构中，从而积极地使其在国有企业中的作用正式化。通过运用中国本土行政公司治理概念，例如“双向进入，交叉任命”和“三重一大”，中共巩固了在企业决策程序和人事任命方面的主导地位，建立了由党领导的混合公司治理模式。虽然这种混合模式可以确保企业合规性，与上级国家和党机关的沟通以及长期发展规划，但它无法协助解决国有企业的效率问题，并且可能破坏其他国有企业的改革。

Keywords

corporate governanceChinese Communist Party (CCP)state-owned enterprises (SOEs)political controlcadre management公司治理中国共产党（CCP）国有企业国有控制干部管理
Type
Research Article
Information
The China Quarterly , Volume 250 , June 2022 , pp. 486 - 508
Check for updates
Copyright
Copyright © The Author(s), 2022. Published by Cambridge University Press on behalf of SOAS University of London

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Allen, Jamie, and Li, Rui. 2018. Awakening Governance: The Evolution of Corporate Governance in China. Hong Kong: Asian Corporate Governance Association.Google Scholar
Baosteel. 2017. “Baoshan gangtie gufen youxiangongsi guanyu xiugai ‘gongsi zhangcheng’ de gonggao” (Announcement of Baoshan Iron and Steel Co., Ltd. on amending the Articles of Association). Baosteel announcement No. 2017-042, http://www.sse.com.cn/disclosure/listedinfo/announcement/c/2017-05-11/600019_20170511_2.pdf. Accessed 7 April 2020.Google Scholar
Blanchette, Jude. 2020. “From ‘China Inc.’ to ‘CCP Inc.’: a new paradigm for Chinese state capitalism.” China Leadership Monitor 66 (Winter 2020), 1–13.Google Scholar
Brødsgaard, Kjeld Erik. 2012. “Politics and business group formation in China: the Party in control?” The China Quarterly 211, 624–648.CrossRefGoogle Scholar
Brødsgaard, Kjeld Erik. 2018. “China's political order under Xi Jinping: concepts and perspectives.” China: An International Journal 16(3), 1–17.CrossRefGoogle Scholar
CCP (Chinese Communist Party). 1999. “Zhonggong zhongyang guanyu guoyou qiye gaige he fazhan ruogan zhongda wenti de jueding (zhongbanfa (1999), 16 hao)” (Decision of the Central Committee of the CCP on several major issues concerning the reform and development of SOEs). Fourth Plenum of the 15th Central Committee of the CCP, https://www.waizi.org.cn/file/23471.html. Accessed 8 July 2021.Google Scholar
CCP. 2010. “Zhonggong zhongyang bangong ting, guanyu jinyibu tuijin guoyou qiye guanche luoshi ‘san zhong, yi da’ juece zhidu de yijian (zhongbanfa (2010), 17 hao)” (Guiding opinion of the General Office of the Central Committee of the CCP on further advancing the implementation of the “three majors and one big” decision-making system for SOEs). Central Committee of the CCP, http://www.gov.cn/jrzg/2010-07/15/content_1655395.htm. Accessed 8 July 2021.Google Scholar
CCP. 2012a. “Zhongguo gongchandang zhangcheng” (Constitution of the CCP). 18th National Congress of the CCP, http://www.xinhuanet.com//18cpcnc/2012-11/18/c_113714762_5.htm.Google Scholar
CCP. 2015a. “Zhongguo gongchandang dangzu gongzuo tiaoli” (Party group working regulations of the Communist Party of China), http://www.gov.cn/zhengce/2015-06/16/content_2880383.htm. Accessed 7 April 2020.Google Scholar
CCP. 2015b. “Guanyu zai shenhua guoyou qiye gaige zhong jianchi dang de lingdao jiaqiang dang de jianshe de ruogan yijian (zhongbanfa (2015) 44 hao)” (Opinion about upholding Party leadership and strengthening Party-building while deepening reform of SOEs). Central Committee of the CCP. Accessed at https://www.pkulaw.com/.Google Scholar
CCP. 2017a. “Zhonggong zhongyang zuzhibu guowu yuan guoziwei dangwei guanyu zhashi tuidong guoyou qiye dangjian gongzuo yaoqiu xieru gongsi zhangcheng de tongzhi (zutongzi (2017) 11 hao)” (Notice of COD and SASAC of the State Council on the requirement for strongly promoting the writing of Party-building work of SOEs into the enterprise Articles of Association). COD of the CCP and the Party Committee of the central SASAC, http://temp.pkulaw.cn:8117/chl/344554.html. Accessed 8 July 2021.Google Scholar
CCP. 2017b. “Zhongguo gongchandang zhangcheng” (Constitution of the CCP). 19th National Congress of CCP, http://www.xinhuanet.com//english/download/Constitution_of_the_Communist_Party_of_China.pdf.Google Scholar
CCP. 2018. “Zhongyang qiye lingdao renyuan guanli guiding (2018 xiuzheng)” (Provision on the management of central enterprise leaders (revised 2018)). COD of the CCP and Party Committee of the SASAC, https://www.pkulaw.com/.Google Scholar
CCP. 2020. “Zhongguo gongchandang guoyou qiye jiceng zuzhi gongzuo tiaoli (shixing)” (Regulations of the Communist Party of China on the work of primary organizations of SOEs (trial implementation)), 5 January, http://www.gov.cn/zhengce/2020-01/05/content_5466687.htm.Google Scholar
Chan, Hon S. 2009. “Politics over markets: integrating state-owned enterprises into Chinese socialist market.” Public Administration and Development 29, 43–54.CrossRefGoogle Scholar
Chang, Eric C., and Wong, Sonia M.L.. 2004. “Political control and performance in China's listed firms.” Journal of Comparative Economics 32, 617–636.CrossRefGoogle Scholar
Chen, Jean J., Liu, Xuguang and Li, Weian. 2010. “The effect of insider control and global benchmarks on Chinese executive compensation.” Corporate Governance 18(2), 107–123.CrossRefGoogle Scholar
CSRC (China Securities Regulatory Commission). 2018. “Code of corporate governance for listed companies,” http://www.csrc.gov.cn/csrc_en/c102034/c1372459/1372459/files/P020190415336431477120.pdf. Accessed 8 July 2021.Google Scholar
Fu, Jenny. 2016. “State capitalism and corporate law: the governance of SOEs in China.” In Tomasic, Roman (ed.), Routledge Handbook of Corporate Law. London: Routledge, 145–182.Google Scholar
Gilson, Ronald J. 2001. “Globalizing corporate governance: convergence of form or function.” The American Journal of Comparative Law 49(2), 329–357.CrossRefGoogle Scholar
Hansmann, Henry, and Kraakman, Reinier. 2001. “The end of history for corporate law.” Georgetown Law Journal 89(2), 439–468.Google Scholar
Keay, Andrew, and Zhao, Jingchen. 2018. “Transforming corporate governance in Chinese corporations: a journey, not a destination.” Northwestern Journal of International Law and Business 38(2), 187–232.Google Scholar
Lardy, Nicholas R. 2019. The State Strikes Back: The End of Economic Reform in China? Washington, DC: Peterson Institute Press.Google Scholar
Leutert, Wendy. 2018. “Firm control: governing the state-owned economy under Xi Jinping.” China Perspectives 2018(1–2), 27–36.CrossRefGoogle Scholar
Li, Weiye, and Putterman, Louis. 2008. “Reforming China's SOEs: an overview.” Comparative Economic Studies 50(3), 353–380.CrossRefGoogle Scholar
Lin, Wen, and Milhaupt, Curtis J.. 2013. “We are the (national) champions: understanding the mechanisms of state capitalism in China.” Stanford Law Review 65, 697–760.Google Scholar
Lin, Yi-min, and Zhu, Tian. 2001. “Ownership restructuring in Chinese state industry: an analysis of evidence on initial organizational changes.” The China Quarterly 166, 342–367.CrossRefGoogle Scholar
Mar, Pamela, and Young, Michael N.. 2001. “Corporate governance in transition economies: a case study of two Chinese airlines.” Journal of World Business 36(3), 280–302.CrossRefGoogle Scholar
McNally, Christopher A. 2002. “Strange bedfellows: Communist Party institutions and new governance mechanisms in Chinese state holding corporations.” Business and Politics 4(1), 91–115.CrossRefGoogle Scholar
Milhaupt, Curtis, and Zheng, Wentong. 2015. “Beyond ownership: state capitalism and the Chinese firm.” Georgetown Law Journal 103(3), 665–722.Google Scholar
MOF (Ministry of Finance). 2017. “Zhongyang jinrong qiye jiang dangjian gongzuo yaoqiu xieru gongsi zhangcheng xiugai zhiyin de tongzhi (caijin (2017) 48 hao)” (Notice on revised guidelines for central financial enterprises to write the requirements for Party-building work into the enterprise Articles of Association). Internal document.Google Scholar
Morck, Randall, and Yeung, Bernard. 2014. “Corporate governance in China.” Journal of Applied Corporate Finance 26(3), 20–41.Google Scholar
Naughton, Barry, and Tsai, Kellee S.. 2015. State Capitalism, Institutional Adaptation, and the Chinese Miracle. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Nolan, Peter. 2012. Is China Buying the World? Cambridge: Polity Press.CrossRefGoogle Scholar
NPC (National People's Congress). 2018. Company Law of the People's Republic of China (revised in 2018). Standing Committee of the National People's Congress, http://www.lawsdom.com/newsitem/276779412. Accessed 8 July 2021.Google Scholar
OECD. 2011. Corporate Governance of Listed Companies in China: Self-Assessment by the China Securities Regulatory Commission. Paris: OECD Publishing. http://dx.doi.org/10.1787/9789264119208-en.Google Scholar
Oi, Jean C. 2011. Going Private in China: The Politics of Corporate Restructuring and System Reform. Stanford, CA: The Walter H. Shorenstein Asia-Pacific Research Center.Google Scholar
Opper, Sonja, Wong, Sonia M.L. and Hu, Ruyin. 2002. “Party power, market and private power: Communist Party of China's persistence in China's listed companies.” The Future of Market Transition 19, 105–138.Google Scholar
Pope, Shawn, and Meyer, John W.. 2015. “The global corporate organization.” Management and Organization Review 11(2), 173–177.CrossRefGoogle Scholar
Sabbaghi, Omid. 2016. “Corporate governance in China: a review.” Corporate Governance 16(5), 866–882.CrossRefGoogle Scholar
Sappideen, Razeen. 2017. “Corporate governance with Chinese characteristics: the case of state-owned enterprises.” Frontiers of Law in China 12(1), 90–113.Google Scholar
SASAC (State-owned Assets Supervision and Administration Commission). 2004. “Guanyu guoyou duzi gongsi dongshihui jianshe de zhidao yijian (guozifa (2004), 229 hao)” (Guiding opinions on the board of directors of state-owned sole proprietorships). SASAC, Enterprise Reorganization Bureau, http://www.sasac.gov.cn/n2588025/n2588119/c2708883/content.html. Accessed 8 July 2021.Google Scholar
SASAC. 2016. “Xin shidai guoyou qiye dang de jianshe de genben zhinan” (A fundamental guide to the construction of the Party in the SOEs in the new era). Qiushi, http://theory.people.com.cn/n1/2018/0928/c40531-30317818.html. Accessed 8 July 2021.Google Scholar
SASAC. 2017. “Guowuyuan guoziwei yi guan ziben wei zhu tuijin zhineng zhuanbian fang'an de tongzhi (guobanfa (2017), 38 hao)” (Notice of the SASAC of the State Council to promote the transformation of functions with the focus on capital management), http://www.gov.cn/zhengce/content/2017-05/10/content_5192390.htm. Accessed 8 July 2021.Google Scholar
SASAC. 2018. SASAC Yearbook 2018. Beijing: SASAC.Google Scholar
SASAC and CCP. 2004. “Zhonggong zhongyang zuzhibu guowuyuan guoziwei dangwei guanyu jiaqiang he gaijin zhongyang qiye dangjian gongzuo de yijian (zhongbanfa (2004) 31 hao)” (Opinions of the COD and the Party committee of the SASAC of the State Council on strengthening and improving the Party-building work of central enterprises). Beijing: COD of the Central Committee of the CCP and the Party Committee of the central SASAC. Accessed at https://www.pkulaw.com/.Google Scholar
SASAC and CCP. 2013. “Zhongyang zuzhibu, guowuyuan guoziwei dangwei guanyu zhongyang qiye dangwei zai xiandai qiye zhiduxia chongfen fahui zhengzhi hexin zuoyong de yijian (zhongbanfa (2013), 5 hao)” (Opinions of the COD and the Party committee of the SASAC of the State Council on the central enterprise Party committees fully playing the political core role under the modern enterprise system). Beijing: COD of the Central Committee and the Party Committee of the central SASAC, https://www.gongwenyi.com/view/15755.html. Accessed 8 July 2021.Google Scholar
Sinopec. 2019. “Articles of Association of China Petroleum and Chemical Corporation (revised at the annual general meeting for the Year 2018 on 09 May 2019).” Beijing: China Petroleum & Chemical Corporation, https://www.sec.gov/Archives/edgar/data/1123658/000110465919024232/a18-41808_1ex1.htm. Accessed 8 July 2021.Google Scholar
State Council. 2017. “Guowuyuan bangongting guanyu jinyibu wanshan guoyou qiye faren zhili jiegou de zhidao yijian (guobanfa (2017), 36 hao)” (Guiding opinions of the General Office of the State Council on further improving the corporate governance structure of SOEs), http://www.gov.cn/zhengce/content/2017-05/03/content_5190599.htm.Google Scholar
State Council and CCP. 2015. “Zhonggong zhongyang, guowuyuan guanyu shenhua guoyou qiye gaige de zhidao yijian (zhongbanfa (2015) 22 hao)” (Guiding opinions of the Central Committee of the CCP and the State Council on deepening the reform of SOEs). Beijing: Central Committee of the CCP and the State Council, http://www.gov.cn/zhengce/2015-09/13/content_2930440.htm. Accessed 8 July 2021.Google Scholar
Steinfeld, Edward S. 2010. Playing Our Game: Why China's Rise Doesn't Threaten the West. Oxford: Oxford University Press.Google Scholar
Tam, On Kit. 1999. The Development of Corporate Governance in China. Cheltenham: Edward Elgar.Google Scholar
Tricker, Bob, and Li, Gregg. 2019. Understanding Corporate Governance in China. Hong Kong: Hong Kong University Press.CrossRefGoogle Scholar
Wang, Jiangyu. 2014. “The political logic of corporate governance in China's state-owned enterprises.” Cornell International Law Journal 47(3), 631–669.Google Scholar
Wang, Yajie. 2018. “94 jia qiye, 9 cheng yishang difang guoqi yi jianli dongshihui” (94 state-owned central enterprises and more than 90 per cent of local SOEs have established board of directors). eeo.com.cn, 30 August, http://www.eeo.com.cn/2018/0830/335884.shtml.Google Scholar
Wong, T.J. 2016. “Corporate governance research on listed firms in China: institutions, governance and accountability.” Foundations and Trends in Accounting 9(4), 259–326.CrossRefGoogle Scholar
Xi, Jinping. 2016. “Xi jinping zai quanguo guoyou qiye dang de jianshe gongzuo huiyi shang qiangdiao jianchi dang dui guoyou qiye de lingdao bu dongyao kaichuang guoyou qiye dang de jianshe xin jumian” (Xi Jinping emphasized at the National SOE Party-building Work Conference (NSPBWC) that the Party's leadership over SOEs will unswervingly create a new situation for Party buidling in SOEs), http://www.founder.com/ajax/download.aspx?id=225&name=59714E0AFAFDE0D61A576AFD16F8A497.Google Scholar
Yang, Jingjing, Chi, Jing and Young, Martin. 2011. “A review of corporate governance in China.” Asian-Pacific Economic Literature 25(1), 15–28.CrossRefGoogle Scholar
Yeo, Yukyung. 2013. “Contextualizing corporate governance: the case of China's central state enterprise groups.” Journal of Contemporary China 22(81), 460–475.CrossRefGoogle Scholar
Yu, Wei. 2013. “Party control in China's listed firms.” Czech Journal of Economics and Finance 63(4), 382–397.Google Scholar
Zhang, Angela Huyue, and Liu, John Zhuang. 2019. “Ownership and political control: evidence from charter amendments.” International Review of Law and Economics 60, 1–49.Google Scholar
Zhang, Yihong. 2012. “The Party's long shadow: the Party's control and influence over the corporate governance of Chinese listed companies.” International Company and Commercial Law Review 23(10), 323–343.Google Scholar