State-Owned Enterprises

Oxford University Press: In The Third Revolution, eminent China scholar Elizabeth C. Economy provides an incisive look at the transformative changes underway in China today. Chinese leader Xi Jinping has unleashed a powerful set of political and economic reforms: the centralization of power under Xi, himself; the expansion of the Communist Party’s role in Chinese political, social, and economic life; and the construction of a virtual wall of regulations to control more closely the exchange of ideas and capital between China and the outside world. Beyond its borders, Beijing has recast itself as a great power, seeking to reclaim its past glory and to create a system of international norms that better serves its more ambitious geostrategic objectives. In so doing, the Chinese leadership is reversing the trends toward greater political and economic opening, as well as the low-profile foreign policy, that had been put in motion by Deng Xiaoping’s “Second Revolution” 30 years earlier.Through a wide-ranging exploration of Xi Jinping’s top political, economic, and foreign policy priorities—fighting corruption, managing the Internet, reforming the state-owned enterprise sector, improving the country’s innovation capacity, enhancing air quality, and elevating China’s presence on the global stage—Economy identifies the tensions, shortcomings, and successes of Xi’s reform efforts over the course of his first five years in office. She also assesses their implications for the rest of the world, and provides recommendations for how the United States and others should navigate their relationship with this vast nation in the coming years.{chop}

When Deng Xiaoping launched China on the path to economic reform in the late 1970s, he vowed to build “socialism with Chinese characteristics.” More than three decades later, China’s efforts to modernize have yielded something very different from the working people’s paradise Deng envisioned: an incipient kleptocracy, characterized by endemic corruption, soaring income inequality, and growing social tensions. China’s Crony Capitalism traces the origins of China’s present-day troubles to the series of incomplete reforms from the post-Tiananmen era that decentralized the control of public property without clarifying its ownership.Beginning in the 1990s, changes in the control and ownership rights of state-owned assets allowed well-connected government officials and businessmen to amass huge fortunes through the systematic looting of state-owned property—in particular land, natural resources, and assets in state-run enterprises. Mustering compelling evidence from over two hundred corruption cases involving government and law enforcement officials, private businessmen, and organized crime members, Minxin Pei shows how collusion among elites has spawned an illicit market for power inside the party-state, in which bribes and official appointments are surreptitiously but routinely traded. This system of crony capitalism has created a legacy of criminality and entrenched privilege that will make any movement toward democracy difficult and disorderly.Rejecting conventional platitudes about the resilience of Chinese Communist Party rule, Pei gathers unambiguous evidence that beneath China’s facade of ever-expanding prosperity and power lies a Leninist state in an advanced stage of decay. —Harvard University Press{chop}