Controlling Corporate Power in China: Case Studies of Seed Companies and Water Distribution
Lanying Zhang, Guanqi Li and Huili He
Corresponding authors: Huili He, email: firstname.lastname@example.org
The American Journal of Economics and Sociology, Vol.77, No.2, 2018
Abtract: 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 pro?ts, 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 of?cials. The Chinese government’s ?ght against corruption in recent years has been based on its market involvement, as well as on its determination to con?ne the power of corporations, which is a tough game.
To link to this article: https://doi.org/10.1111/ajes.12210