Corporate governance and ownership reform in China's state-owned enterprises

Russell Smyth, Jianguo Wang, Mui Ling Tang

Research output: Contribution to journalArticleResearchpeer-review

Abstract

This article outlines some of the major challenges facing Chinese township–village enterprises (TVEs) since the 1990s. The authors argue that the internal mechanisms associated with the unique ownership structure of TVEs has allowed them to perform better than state-owned enterprises (SOEs). Since the mid-1990s, debt levels in the TVE sector have increased sharply. Most of the problems of TVEs have been magnified by the close relationship between local governments and enterprises, which was once one of their major strengths. Since the mid-1990s, local governments have come to regard TVEs with high levels of debt as a burden rather than an asset. In response local governments have moved to other, more indirect forms of governance over most TVEs under their control, while retaining direct control over the most successful. These alternative ownership structures include share-holding co-operatives and outright privatisation.
Original languageEnglish
Pages (from-to)93-108
Number of pages16
JournalAsian Profile
Volume29
Issue number2
Publication statusPublished - 2001

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