...governance in this narrow sense and attempts to explain the political core function of Party Organization. Moreover it will analyze a real case: “Sinosteel Corporation”. This company was created and projected by the Chinese government with the aim to be the leader in its sector. Its corporate governance is deeply influenced by the party consequently by the Chinese government, which contributed to its establishment and growth through several government-subsidies. Key words: China’s SOEs, Governance Structure, the CCP organization, internal control mechanism, Sinosteel. Abbreviations: CCP, China Communist Party; SOEs, State-Owned Enterprises; CICSC, China Internal Control Standards Committee; SASAC, State-owned Assets Supervision and Administration Commission; PSC, Party Standing Committee; CPCC, China Party Central Committee; Introduction The definition of corporate governance in China refers to the system that regulates the multiple relationships between all the parties with interests in a business organization, typically underlying the shareholders as a predominantly important group. However in practise corporate governance focus mainly on the agency problems in particular within two kinds of firms. The state owned enterprise (SOEs), above all after the Company Law transformed them into one of the corporate forms. The other type of firms are listed companies, which under the Company Law must be companies limited by shares (CLS). One fundamental dilemma of the Chinese Corporate...
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...interest of the authority to secure economic growth as a means to enhance stability, but in the meantime, it will not hesitate to quench any collective actions that potentially challenge its absolute power. Workers’ movements in post-reform China, particularly starting from late-1990s when privatization was accelerated and the Chinese market was increasingly integrated into the global capitalist order, can illustrate the above statements. In this paper, I will examine the grievance of Chinese workers in the turmoil of rapid transition from state socialism to market socialism, and attempt to understand the reason why, while similar conditions have led to political insurgency of the working class in other countries in the past, the wide-spread unrest in China has not yet shown any sign of political activism. I will present a brief characterization of the labor movements since 1990s in the introduction, which will be followed by a more in-depth analysis of the social conditions contributing to the increased frequency of labor unrest. Then I will use late-18th-century England as an example to argue why under such conditions one may expect a political unrest. Afterwards I will analyze some features of state-capitalism in contemporary China under the authoritarian Chinese Communist Party (CCP) with the hope to explain the lack of political initiatives in contemporary Chinese labor movements. Introduction In the summer of 2010, several hundred workers in a Honda supplier...
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...Discuss how and why China’s relations with the world economy change after 1993? The economic reforms of China, called “open doors policy” starting in 1978 with Deng Xiaoping –the leader of the Communist Party of China (CPC) - marked the beginning of a new era where China initiated to open its economy to the world. (Nolan, 2005) In 1992, during his Southern tour, Deng Xiaoping introduced the term of “Socialist Market economy” to describe Chinese economy and in 1993 the term was added to the Constitution, which means that socialism was still the basis of the economical system but that the State also protected the market economy from now on and therefore was ready to go international. This essay will discuss to which extent 1993 was the changing year for China’s international economic relations. Naughton (2007) refers to the 1990s reform in China as a “reform with losers” meaning that at this point, Chinese economy was moving towards a transformation to capitalism. They started to strengthen the institutions of market economy and began to privatize the State sector. The State-owned Enterprises (SOE) reform - specifically the “grasping the big, letting go of the small” strategy - was aimed to improve the efficiency and corporate governance of the State companies by keeping the key resources (such as infrastructure construction, telecommunications, financial services, energy and raw materials) (GENG, X., YANG, X. and JANUS, A. 2009) and the big companies and let go the...
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...First of all I will discuss China’s historical background and its need for reform and also how economic reform started out in 1978. Then I will go on to cover the four major economic institutions that needed to be reformed in order for China to become a market economy. These four major economic institutions will then be discussed in detail. This paper will then go briefly into China joining the WTO and will conclude with China’s economic situation at present. Chinese economic policies and institution have undergone a number of extreme changes since the establishment of the Communist regime in 1949. After the Communist Party took national power in 1949, the disorder caused by the imperialist invasions and domestic wars were put to an end and China began to strive for development by following Russia’s example in pursuing Leninist and Marxist doctrine. By following this doctrine they would replace free market and private ownership with socialist planning and public ownership. In order for this to become a reality China had to pursue radical revolutionary domestic and foreign policies to overcome the resistance to the Chinese Communist movements. After closing its doors to western concepts of capitalism and free market economy it seemed like China was doing well but it was soon evident that the rigid planning and the command market economy was becoming inefficient. In contrast to the western economies China was indeed falling behind. Even China’s neighbors such as Taiwan, Singapore...
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...The People's Republic of China ranks since 2010 as the world's second largest economy after the United States. It has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of goods in the world. The country's per capita GDP (PPP) was $7,544 (International Monetary Fund, 94th in the world) in 2010. The provinces in the coastal regions of China tend to be more industrialized, while regions in the hinterland are less developed. As China's economic importance has grown, so has attention to the structure and health of that economy. China’s population can be divided into roughly 3 parts: farmers (about 700-800 million), rural migrants (150-250 million) and urban residents (250-350 million). Demographically and politically, China’s rural sector is the most important. The Chinese Communist Party owes its initial success to rural residents; Mao Zedong depended heavily on soldiers from rural areas in his battles against both the Chinese Nationalists (Kuomintang) and invading Japanese soldiers. Biggest Challenges to China’s economy Since 1978 the Chinese economy has maintained economic growth at an average of nearly 8%. By western standards this is remarkable. The UK, by contrast, has grown at an average rate of 2.5%. However, despite the impressive figures there are many serious economic problems resulting from economic growth. 1. Pollution/ Environmental...
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...Yinzhi Miao Oversea Listing and State-Owned-Enterprise Governance in China: the Role of the State LL.M. Long Paper Harvard Law School Supervised by Prof. Reinier Kraakman and Mark Roe April 2012 Oversea Listing and State-Owned-Enterprise Governance in China: the Role of the State Yinzhi Miao Abstract: There are both considerate horizontal and vertical governance problems in the Chinese state-owned-enterprises (SOEs). Due to their privileged positions in the political economy, traditional institutions of corporate governance are far from perfect. Thus the value of oversea listing as a governance mechanism is highlighted, and that could be better revealed by a deeper analysis of the benefit-and-cost balance by the government which controls the SOEs. However, effective as it is, oversea listing could not be a marvelous antidote to all governance ills. Further, as the two major governance disasters of oversea listed SOEs shows, if the government lacks a proper self-positioning, nontrivial negative implications will be brought to SOEs governance via oversea listing. The ultimate function of corporate governance in SOEs thus relies heavily on public governance. Key words: state-owned-enterprises, oversea listing, corporate China governance, 2 Table of contents I. Introduction ....................................................................................................................4 II. The Governance problems of Chinese SOEs and the limitations of...
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...classified as the third largest rice exporter in the world. Other than this, textiles, crude oil, coal, rubber, rice, coffee, marine products, garments, footwear, handicrafts, electronic goods and components, other products are the other main exports of Vietnam. However, mainly imports of Vietnam consists of petroleum products, fertilizers, pesticides, iron and steel, motorcycles, motor cars and trucks, textile yarn, cotton, leather and garment material, machinery and equipment, other product. The USA, Japan, the European Union, Australia and China are the main export clients for Vietnam. While, for imports, the country's main partners are Japan, Thailand, China, South Korea and Singapore. In this paper, we attempt to determine the relationships between Foreign Direct Investment (FDI), Real Exchange Rate (RER) and Exports in Vietnam. Moreover, we also examine the international export flows by using the gravity model approach and the trade reform. Foreign Direct Investment (FDI), Exports and Real Exchange Rate (RER) Linkages in Vietnam There are number of statistically significant links between foreign direct investment (FDI), Real Exchange Rate (RER) and Exports as shown by International economic literature. They found that both inward FDI and exports increased is due to a real depreciation of the VND and a causal relationship between FDI and Vietnamese exports. Vietnamese exports have been promoted to a specific country because FDI to the destination country and FDI into Vietnam...
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...org/articles.php?doi=10.1257/jel.49.4.1076 The Fundamental Institutions of China’s Reforms and Development Chenggang Xu* China’s economic reforms have resulted in spectacular growth and poverty reduction. However, China’s institutions look ill-suited to achieve such a result, and they indeed suffer from serious shortcomings. To solve the “China puzzle,” this paper analyzes China’s institution—a regionally decentralized authoritarian system. The central government has control over personnel, whereas subnational governments run the bulk of the economy; and they initiate, negotiate, implement, divert, and resist reforms, policies, rules, and laws. China’s reform trajectories have been shaped by regional decentralization. Spectacular performance on the one hand and grave problems on the other hand are all determined by this governance structure. ( JEL O17, O18, O43, P21, P25, P26) 1. Introduction hinese economic reforms, which have been in flux for three decades, have more than doubled China’s economic growth, from an average of 4.4 percent annually before 1978 to an average of 9.5 percent after 1978. * University of Hong Kong and WCU–SNU. The first draft of this paper was written at Hong Kong University of Science and Technology (HKUST) when I was visiting there. The hospitality and generous support of HKUST are greatly appreciated. Comments from participants in conferences and seminars at the China Europe International Business School, University of Chicago, the Chinese University...
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...Third Plenum 1978 * The first time china had ever embraced to idea of foreign investment – SEZ (special economic zones) * ‘Fall of the bamboo curtain’ 1978 * Deng fought off Hua Guofeng – a ‘whateverist’ - to reach party leadership * China has prioritised modernisation since the third plenum * Hua wanted to initiate his own ten year plan – but once Deng gained power he realised that china didn’t have the recourses to fund the ten year plan, so he initiated his own scaled down 5 year plan * To fully initiate Deng’s plans he had to first over come poverty/famine – so normal people could spend their money on consumer goods, instead of food. * When people started to gain more purchasing power, the central planners were unable to cope, and were forced to diversify the grain production – main product of consumption * The changes brought about a 50% rise is procurement prices * The money that was gained from this increase in funds, was handed to the local governments, and was re-invested in to agriculture * The rapid growth in local agriculture, was so effective and widespread – it lifted 67% of all peasants out off abject poverty * Rural enterprises grew at a 20-33% increase per annum – this sector grew far more rapidly than any other economic sector in china * Deng’s fiscal changes gave local businesses tremendous stimulus * Due to Deng’s opening off competition of state enterprises labour became very...
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...Court, Sheffield, S1 4DP, UK lip05gcp@sheffield.ac.uk, j.m.nunes@sheffield.ac.uk Abstract It is common for inexperienced researchers and research students to aim at investigating very wide contexts such as countries (e.g. China, India, UK), regions (e.g. the Arab Countries) or even continents (e.g. Africa). Such studies in Information Systems (IS) are not only unrealistic and potentially unfeasible, but may result in findings that are neither significant nor meaningful. Research supervisors often face difficulties in explaining and resolving these common pitfalls in research proposals. This paper proposes the use of Political, Economic, Social and Technological (PEST, also often referred to as STEP) analysis as a tool to identify narrower contexts and focus research questions around feasible and meaningful regional contexts. It illustrates this process with the results of an analysis carried out as part of an ongoing PhD research project. The project aims to investigate the barriers and risks associated with the post-implementation of Enterprise Resource Planning (ERP) systems in Chinese companies. PEST analysis was used to define an appropriate region in China (i.e. Guangdong), as well as the type of company to be studied, namely State Owned Enterprises (SOE). This analysis was followed by a set of SWOT analyses in order to identify a suitable sector, namely the electronic and telecommunication manufacturing sector. The paper also shows how the researcher reviewed, compared and...
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...World Development Vol. 41, pp. 51–66, 2013 Ó 2012 Elsevier Ltd. All rights reserved 0305-750X/$ - see front matter www.elsevier.com/locate/worlddev http://dx.doi.org/10.1016/j.worlddev.2012.06.012 Gender in Transition: The Case of North Korea STEPHAN HAGGARD University of California, San Diego, USA and MARCUS NOLAND * Peterson Institute for International Economics, USA East-West Center, USA Summary. — This paper uses survey data to examine the experience of women in North Korea’s economic transition. Women have been shed from state-affiliated employment and thrust into a market environment characterized by weak institutions and corruption. More than one-third of men indicate that criminality and corruption is the best way to make money, and 95% of female traders report paying bribes. The increasingly male-dominated state preys on the increasingly female-dominated market. Energies are directed toward survival and this population appears to lack the tools to act collectively to improve their status. Ó 2012 Elsevier Ltd. All rights reserved. Key words — gender, transition, refugees, North Korea 1. INTRODUCTION emphasis on the dramatic shifts that occurred as the state socialist system broke down during the famine of the mid-1990s and the country experienced “marketization from below.” We then turn to an examination of the sample, household economics and the implications of the fact that North Korean women have been disproportionately involved in marketization...
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...What were the overall development strategies in the pre reform period and in the reform period of the PRC? How do these strategies compare in terms of their achievements and the problems that arose? After 1949, the PRC abandoned the traditional household-based, “bottom-heavy” economy, and set out to utilise the Soviet Union’s socialist industrial strategy through direct government control. The traditional economy consisted of high labour-intensive productivity of agriculture, which although produced high levels of output, the opportunity for new investments and technology advances to further output was stagnated. This led to planners neglecting the labour-intensive sector and instead poured resources into capital-intensive factories. During the years of 1949-1979, China pursued a vision of socialism, labelled as the “Big Push Industrialisation” which gave overwhelming priority to maximising investment in the heavy industry. As part of this, China adopted a “command economy” system which led to the creation of State Owned Enterprises (SOE), of which the government owned and controlled all large factories, transportation and communication enterprises. The introduction of agricultural collectives meant that land and farm production were held by government commands. Planners assigned production targets to firms and allocated resources and goods among different producers. The government controlled the price system, allocating high prices to products of industry (owned by government)...
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...Reform and Opening in China: “Sequencing” or “Parallel Partial Changing” FAN Gang National Economic Research Institute China Reform Foundation Beijing, China November, 1999 Content I. Introduction: Lessons of Asia Financial Crisis for Reform and Opening ¾ Benefits from Globalization ¾ Constrains to the developing countries ¾ The “unequal footing” ¾ A common cause of Asian crises: “incompatible opening” ¾ The Lessons from Asia crisis: Speed up the reform and Balance the globalization and domestic restructuring ¾ Case of China: Gradual liberalization II. China: Opening process and benefits from the globalization II. 1 Trade. II. 2 Foreign Investment II. 3 Service sectors III. Potential negative impacts of further market liberalization III. 1. Unemployment in general III. 2 Agriculture III. 3 SOEs and Manufacture industries III. 4 Service sectors III. 5 Inter-region and inter-group income disparity IV. Impacts of Asia crisis and corresponding policies V. How to achieve further “Compatible opening” ¾ Will the quick market liberalization solve the problems? ¾ Reforms and opening ¾ “Compatible opening” vs. “sequencing” ¾ Timetable for opening? ¾ No universal solution China has quickly opened its economy in the past 20 years. It is became the largest FDI recipient developing country since 1993 and the trade is already equivalent...
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...Reform and Opening in China: “Sequencing” or “Parallel Partial Changing” FAN Gang National Economic Research Institute China Reform Foundation Beijing, China November, 1999 Content I. Introduction: Lessons of Asia Financial Crisis for Reform and Opening Benefits from Globalization Constrains to the developing countries The “unequal footing” A common cause of Asian crises: “incompatible opening” The Lessons from Asia crisis: Speed up the reform and Balance the globalization and domestic restructuring Case of China: Gradual liberalization II. China: Opening process and benefits from the globalization II. 1 Trade. II. 2 Foreign Investment II. 3 Service sectors III. Potential negative impacts of further market liberalization III. 1. Unemployment in general III. 2 Agriculture III. 3 SOEs and Manufacture industries III. 4 Service sectors III. 5 Inter-region and inter-group income disparity IV. Impacts of Asia crisis and corresponding policies V. How to achieve further “Compatible opening” Will the quick market liberalization solve the problems? Reforms and opening “Compatible opening” vs. “sequencing” Timetable for opening? No universal solution China has quickly opened its economy in the past 20 years. It is became the largest FDI recipient developing country since 1993 and the trade is already equivalent...
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...1.0 Introduction This report talks about china s accounting systems and how it has developed and changed continuously till present. It looks into the history of Chinese accounting, followed by explaining how the institutional factors have had an impact and is backed up by 2 theorist, Hofestede and Grays model. It identifies the significant changes that occurred during its journey in adapting to the IFRS standards starting from 1949. Culture is a main aspect of china and has been incorporated into its accounting systems as well. To conclude it explains future problems that may arise and whether or not china will fully adapt to the IFRS system. 2.0 Brief history of accounting Previously there was no real accounting system in china with the exception of providing financial reports, therefore the Chinese government wanted to implement an accounting system. In 1949 the people Republic of China (PRC) a communist party came into power and adopted a communist accounting approach from Russia to achieve socio economic development without the reliance on developed nations. 2.1 Significant changes that have taken place 2.2 Great Leap Forward The regime of the Great Leap Forward 1958 – 59 was an effort to strengthen china’s economy, and catch up with the western world, but ended during the Cultural Revolution. A series of natural disasters like shortage of water, starvation led to the worst period in china’s history. 2.3 Cultural Revolution However the Cultural Revolution...
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