A Network Anatomy of Chinese State-Owned Enterprises

• Published in: World trade review Vol. 16; no. 4; pp. 583 - 600
• Main Author: LIN, LI-WEN
• Format: Journal Article
• Language: English
• Published: Cambridge, UK Cambridge University Press 01.10.2017
• Subjects: BANKING; Boards of directors; Capitalism; Collaboration; Communications networks; ECONOMY; Executive compensation; Finance companies; Financial institutions; GLOBALISATION; Globalization; GOVERNMENT BUSINESS ENTERPRISES; INTERNATIONAL TRADE; Networks; Public enterprise; Regulation of financial institutions; Research centers; Scholars; Securities regulations; SHARES AND SHAREHOLDERS; Social responsibility; Stockholders; Supervision; WORLD TRADE ORGANISATION; CHINA; United States > US; China
• ISSN: 1474-7456; 1475-3138
• DOI: 10.1017/S1474745617000210

This Article provides an anatomy of Chinese state-owned enterprises (SOEs) by unpacking their various relations with different types of state organs. It shows that Chinese SOEs are embedded in a network composed of dense and complex links with the state. Shareholding ties, albeit important, are only one of the many relations with the state. This network perspective provides a rather comprehensive overview of the basic architecture of China's state-owned sector. It illustrates important governance institutions that are unobservable from the laws on the book and distinctive from international standards. It clarifies some SOE behaviors that appear puzzling when taking the individual firm as the unit of analysis. It also raises challenging questions on various areas of law in the context of globalization.