Controlling Corporate Power in China: Case Studies of Seed Companies and Water Distribution

Lanying Zhang, Guanqi Li and Huili He

American Journal of Economics and Sociology, 2018, vol. 77, issue 2, 511-540

Abstract: In the course of China's economic transition, the government set up a policy goal to gradually withdraw from the market, while, at the same time, increasing the intensity of anti†corruption actions. This article reviews the development of Chinese modern corporations and corresponding policy changes. The development and expansion of modern corporations as a result of reforms that occurred after 1978 reveals the government's decision not to fully withdraw from the market. When private companies are allowed to pursue maximum profits, especially in areas of public resources and services, society and the environment suffer severe negative consequences. Case studies of corporate control of seed companies and water utilities demonstrate in detail the damage caused by privatization. In order to protect the interests of society from corruption, government must concentrate on reducing the rent†seeking behavior of corporations and collusion between businesses and government officials. The Chinese government's fight against corruption in recent years has been based on its market involvement, as well as on its determination to confine the power of corporations, which is a tough game.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/ajes.12210

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ajecsc:v:77:y:2018:i:2:p:511-540

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0002-9246

Access Statistics for this article

American Journal of Economics and Sociology is currently edited by Laurence S. Moss

More articles in American Journal of Economics and Sociology from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().