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The Path of Chinese Privatisation: a case study of village enterprises in southern Jiagnsu

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  • Chih‐jou Jay Chen

Abstract

This paper uses an in‐depth case study in southern Jiangsu to document the last wave of privatisation of Chinese rural enterprises, showing that throughout the economic reforms, particularly at the village level, local cadres and corporate leaders dominated the publicly owned enterprises, from which they benefited disproportionately. It was these same local institutions based on village cadres’ social networks that controlled the entire process of privatisation, leaving nothing to the free market or open competition. Those who positioned themselves in the village administration and enterprises are the same group of specific families and individuals who run the private corporations today. It goes without saying that workers and ordinary villagers have been disenfranchised in this property rights transformation.

Suggested Citation

  • Chih‐jou Jay Chen, 2005. "The Path of Chinese Privatisation: a case study of village enterprises in southern Jiagnsu," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(1), pages 72-80, January.
    • Handle: RePEc:bla:corgov:v:13:y:2005:i:1:p:72-80
    DOI: 10.1111/j.1467-8683.2005.00404.x
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    Cited by:

    1. Michael Webber, 2012. "The Dynamics of Primitive Accumulation: With Application to Rural China," Environment and Planning A, , vol. 44(3), pages 560-579, March.
    2. Xu, Wen & Uddin, Shahzad, 2008. "Public sector reforms, privatisation and regimes of control in a Chinese enterprise," Accounting forum, Elsevier, vol. 32(2), pages 162-177.
    3. Liu, Guy S. & Sun, Pei & Woo, Wing Thye, 2006. "The Political Economy of Chinese-Style Privatization: Motives and Constraints," World Development, Elsevier, vol. 34(12), pages 2016-2033, December.
    4. Michael Webber, 2012. "Making Capitalism in Rural China," Books, Edward Elgar Publishing, number 14446.
    5. Johannes Meuer & Barbara Krug, 2011. "The Current State of Research on Networks in China’s Business System," Chapters, in: Werner Pascha & Cornelia Storz & Markus Taube (ed.), Institutional Variety in East Asia, chapter 7, Edward Elgar Publishing.

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