China in Search of an Efficient Corporate Governance System. International Comparisons and Lessons

Jean-Francois Huchet and Xavier Richet

No 9901, CERT Discussion Papers from Centre for Economic Reform and Transformation, Heriot Watt University

Abstract: The main challenge facing Chinese economic reform in the coming years is that of how to set up an efficient corporate governance system able to effectively control state-owned enterprises (SOEs) and ,on the one hand, encourage restructuring, while at the same time trying to ensure that the umbilical cord which links the State and the Party system to these enterprises is not severed. The paper, based on the study of recent developments of the reform and the literature on non-standard corporate governance systems tries to assess how the Chinese government can cope with the huge task of modernizing the State sector which, for many years, will still play a major role in the development of the Chinese economy.

Date: 1999
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