THE ECONOMIC AND POLITICAL LOGICS OF CHINESE STATE-OWNED ENTERPRISE REFORM SINCE THE 2013 THIRD PLENUM
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Authors
Van Boxtel, Kristin E.
Subjects
China
political economy
Chinese economy
Xi Jinping
economic reform
Chinese Communist Party
CCP
CPC
state-owned enterprise
SOE
state sector
SASAC
NDRC
Belt and Road Initiative
BRI
overcapacity
National People's Congress
national champion
political economy
Chinese economy
Xi Jinping
economic reform
Chinese Communist Party
CCP
CPC
state-owned enterprise
SOE
state sector
SASAC
NDRC
Belt and Road Initiative
BRI
overcapacity
National People's Congress
national champion
Advisors
Glosny, Michael A.
Date of Issue
2021-12
Date
Publisher
Monterey, CA; Naval Postgraduate School
Language
Abstract
In the 2013 Third Plenum of the Eighteenth Chinese Communist Party (CCP) Central Committee, China introduced plans to implement economic reforms to encourage market forces to play a more “decisive” role in China’s economy. The government’s actions following these announcements have lacked follow-through, and state-owned enterprises (SOEs) have instead been consolidated and strengthened. What explains the state of SOE reform implementation in China since 2013? This thesis examines whether economic and political logics better explain SOE reform measures under Xi Jinping’s leadership. The findings reveal that the economic logics behind avoiding meaningful reform of China’s SOEs are mixed. SOE contributions to China’s GDP are substantial, but they create a negative impact on economic growth. However, SOE leverage on global markets and their ability to supply material for the Belt and Road Initiative provides stronger evidence. Evidence in support of political logics reveals that SOE contributions to employment curb a potential resurgence of social discontent and preserve a bastion of the socialist market economy that justifies the CCP’s dominance. Furthermore, SOEs have been leveraged to alleviate market shocks and act on behalf of the CCP in domestic and global theaters, providing a more persuasive explanation behind the state of SOE reform.
Type
Thesis
Description
Series/Report No
Department
National Security Affairs (NSA)
Organization
Identifiers
NPS Report Number
Sponsors
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Citation
Distribution Statement
Approved for public release. Distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.