The state, foreign capital and privatization in China

Journal of Communist Studies and Transition Politics

Volumn 15, Issue 3, 1999, Pages 54-79

  Ma, Shu‐Yun ^a  

^a CHINESE UNIVERSITY OF HONG KONG   (Hong Kong)

Author keywords

[No Author keywords available]

Indexed keywords

CAPITAL FLOW; POLITICAL ECONOMY; PRIVATIZATION; STATE ROLE;

CHINA;

EID: 0033404853     PISSN: 13523279     EISSN: None     Source Type: Journal    
DOI: 10.1080/13523279908415413     Document Type: Article

References (132)

1. See Theda Skocpol, 'Bringing the State Back In: Strategies of Analysis in Current Research', in Peter B. Evans, Dietrich Rueschemeyer and Theda Skocpol (eds.), Bringing the State Back In (Cambridge: Cambridge University Press, 1985), pp.3-37. Although statist theorists have been successful in 'bringing the state back in', they have received many criticisms: see Gabriel A. Almond, 'The Return to the State', American Political Science Review, Vol.82, No.3 (1988), pp.853-74; Paul Cammack, 'Review Article: Bringing the State Back In?' British Journal of Political Science, Vol.19, No.2 (1989), pp.261-90; Forrest D. Colburn, 'Statism, Rationality, and State Centrism', Comparative Politics, Vol.20, No.3 (1988), pp.485-92; Joel S. Migdal, Atul Kohli and Vivienne Shue (eds.), State Power and Social Forces: Domination and Transformation in the Third World (Cambridge: Cambridge University Press, 1994); and Timothy Mitchell, 'The Limits of the State: Beyond Statist Approaches and Their Critics', American Political Science Review, Vol.85, No.1 (1991), pp.77-96.
2. See Theda Skocpol, 'Bringing the State Back In: Strategies of Analysis in Current Research', in Peter B. Evans, Dietrich Rueschemeyer and Theda Skocpol (eds.), Bringing the State Back In (Cambridge: Cambridge University Press, 1985), pp.3-37. Although statist theorists have been successful in 'bringing the state back in', they have received many criticisms: see Gabriel A. Almond, 'The Return to the State', American Political Science Review, Vol.82, No.3 (1988), pp.853-74; Paul Cammack, 'Review Article: Bringing the State Back In?' British Journal of Political Science, Vol.19, No.2 (1989), pp.261-90; Forrest D. Colburn, 'Statism, Rationality, and State Centrism', Comparative Politics, Vol.20, No.3 (1988), pp.485-92; Joel S. Migdal, Atul Kohli and Vivienne Shue (eds.), State Power and Social Forces: Domination and Transformation in the Third World (Cambridge: Cambridge University Press, 1994); and Timothy Mitchell, 'The Limits of the State: Beyond Statist Approaches and Their Critics', American Political Science Review, Vol.85, No.1 (1991), pp.77-96.
3. See Theda Skocpol, 'Bringing the State Back In: Strategies of Analysis in Current Research', in Peter B. Evans, Dietrich Rueschemeyer and Theda Skocpol (eds.), Bringing the State Back In (Cambridge: Cambridge University Press, 1985), pp.3-37. Although statist theorists have been successful in 'bringing the state back in', they have received many criticisms: see Gabriel A. Almond, 'The Return to the State', American Political Science Review, Vol.82, No.3 (1988), pp.853-74; Paul Cammack, 'Review Article: Bringing the State Back In?' British Journal of Political Science, Vol.19, No.2 (1989), pp.261-90; Forrest D. Colburn, 'Statism, Rationality, and State Centrism', Comparative Politics, Vol.20, No.3 (1988), pp.485-92; Joel S. Migdal, Atul Kohli and Vivienne Shue (eds.), State Power and Social Forces: Domination and Transformation in the Third World (Cambridge: Cambridge University Press, 1994); and Timothy Mitchell, 'The Limits of the State: Beyond Statist Approaches and Their Critics', American Political Science Review, Vol.85, No.1 (1991), pp.77-96.
4. See Theda Skocpol, 'Bringing the State Back In: Strategies of Analysis in Current Research', in Peter B. Evans, Dietrich Rueschemeyer and Theda Skocpol (eds.), Bringing the State Back In (Cambridge: Cambridge University Press, 1985), pp.3-37. Although statist theorists have been successful in 'bringing the state back in', they have received many criticisms: see Gabriel A. Almond, 'The Return to the State', American Political Science Review, Vol.82, No.3 (1988), pp.853-74; Paul Cammack, 'Review Article: Bringing the State Back In?' British Journal of Political Science, Vol.19, No.2 (1989), pp.261-90; Forrest D. Colburn, 'Statism, Rationality, and State Centrism', Comparative Politics, Vol.20, No.3 (1988), pp.485-92; Joel S. Migdal, Atul Kohli and Vivienne Shue (eds.), State Power and Social Forces: Domination and Transformation in the Third World (Cambridge: Cambridge University Press, 1994); and Timothy Mitchell, 'The Limits of the State: Beyond Statist Approaches and Their Critics', American Political Science Review, Vol.85, No.1 (1991), pp.77-96.
5. See Theda Skocpol, 'Bringing the State Back In: Strategies of Analysis in Current Research', in Peter B. Evans, Dietrich Rueschemeyer and Theda Skocpol (eds.), Bringing the State Back In (Cambridge: Cambridge University Press, 1985), pp.3-37. Although statist theorists have been successful in 'bringing the state back in', they have received many criticisms: see Gabriel A. Almond, 'The Return to the State', American Political Science Review, Vol.82, No.3 (1988), pp.853-74; Paul Cammack, 'Review Article: Bringing the State Back In?' British Journal of Political Science, Vol.19, No.2 (1989), pp.261-90; Forrest D. Colburn, 'Statism, Rationality, and State Centrism', Comparative Politics, Vol.20, No.3 (1988), pp.485-92; Joel S. Migdal, Atul Kohli and Vivienne Shue (eds.), State Power and Social Forces: Domination and Transformation in the Third World (Cambridge: Cambridge University Press, 1994); and Timothy Mitchell, 'The Limits of the State: Beyond Statist Approaches and Their Critics', American Political Science Review, Vol.85, No.1 (1991), pp.77-96.
6. See Theda Skocpol, 'Bringing the State Back In: Strategies of Analysis in Current Research', in Peter B. Evans, Dietrich Rueschemeyer and Theda Skocpol (eds.), Bringing the State Back In (Cambridge: Cambridge University Press, 1985), pp.3-37. Although statist theorists have been successful in 'bringing the state back in', they have received many criticisms: see Gabriel A. Almond, 'The Return to the State', American Political Science Review, Vol.82, No.3 (1988), pp.853-74; Paul Cammack, 'Review Article: Bringing the State Back In?' British Journal of Political Science, Vol.19, No.2 (1989), pp.261-90; Forrest D. Colburn, 'Statism, Rationality, and State Centrism', Comparative Politics, Vol.20, No.3 (1988), pp.485-92; Joel S. Migdal, Atul Kohli and Vivienne Shue (eds.), State Power and Social Forces: Domination and Transformation in the Third World (Cambridge: Cambridge University Press, 1994); and Timothy Mitchell, 'The Limits of the State: Beyond Statist Approaches and Their Critics', American Political Science Review, Vol.85, No.1 (1991), pp.77-96.
7. Andre G. Frank, Capitalism and Underdevelopment in Latin America: Historical Studies of Chile and Brazil (New York: Monthly Review Press, 1969).
8. Peter Evans, Dependent Development: The Alliance of Multinational, State and Local Capital (Princeton, NJ: Princeton University Press, 1979).
9. Peter Evans, 'Class, State, and Dependency in East Asia: Lessons for Latin Americanists', in Frederic C. Deyo (ed.), The Political Economy of the New Asian Industrialism (Ithaca, NY: Cornell University Press, 1987), pp.203-26 (pp.211-12).
10. York W. Bradshaw and Zwelakhe Tshandu, 'Foreign Capital Penetration, State Intervention, and Development in Sub-Saharan Africa', International Studies Quarterly, Vol.34, No.2 (1990), pp.229-51; York W. Bradshaw, Young-Jeong Kim and Bruce London, Transnational Economic Linkages, the State, and Dependent Development in South Korea, 1966-1988: A Time-Series Analysis', Social Forces, Vol.72, No.2 (1993), pp.315-45.
11. York W. Bradshaw and Zwelakhe Tshandu, 'Foreign Capital Penetration, State Intervention, and Development in Sub-Saharan Africa', International Studies Quarterly, Vol.34, No.2 (1990), pp.229-51; York W. Bradshaw, Young-Jeong Kim and Bruce London, Transnational Economic Linkages, the State, and Dependent Development in South Korea, 1966-1988: A Time-Series Analysis', Social Forces, Vol.72, No.2 (1993), pp.315-45.
12. See, for example, Fernando H. Cardoso and Enzo Faletto, Dependency and Development in Latin America (Berkeley, CA: University of California Press, 1978).
13. There are now five such surviving socialist states: China, Cuba, Laos, North Korea, and Vietnam: see Leslie Holmes, Post-Communism: An Introduction (Cambridge: Polity Press, 1997), p.116.
14. In fact, views have been expressed that, for post-communist transition to be successful, there is a need to re-build effective state intervention mechanisms in post-Leninist states: see Arista Maria Cirtautas, 'The Post-Leninist State: A Conceptual and Empirical Examination', Communist and Post-Communist Studies, Vol.28, No.4 (1995), pp.379-92; and Michael Ellman, 'The State under State Socialism and Post-Socialism', in Ha-Joon Chang and Robert Rowthorn (eds.), The Role of the State in Economic Change (Oxford: Clarendon Press, 1995), pp.215-36.
15. In fact, views have been expressed that, for post-communist transition to be successful, there is a need to re-build effective state intervention mechanisms in post-Leninist states: see Arista Maria Cirtautas, 'The Post-Leninist State: A Conceptual and Empirical Examination', Communist and Post-Communist Studies, Vol.28, No.4 (1995), pp.379-92; and Michael Ellman, 'The State under State Socialism and Post-Socialism', in Ha-Joon Chang and Robert Rowthorn (eds.), The Role of the State in Economic Change (Oxford: Clarendon Press, 1995), pp.215-36.
16. Robert Kleinberg, China's 'Opening' to the Outside World: The Experiment with Foreign Capitalism (Boulder, CO: Westview, 1990); Margaret M. Pearson, Joint Ventures in the People's Republic of China: The Control of Foreign Direct Investment under Socialism (Princeton, NJ: Princeton University Press, 1991); and Chyungle Lee, 'Foreign Direct Investment in China: Do State Policies Matter?', Issues and Studies, Vol.33, No.7 (1997), pp.40-61.
17. Robert Kleinberg, China's 'Opening' to the Outside World: The Experiment with Foreign Capitalism (Boulder, CO: Westview, 1990); Margaret M. Pearson, Joint Ventures in the People's Republic of China: The Control of Foreign Direct Investment under Socialism (Princeton, NJ: Princeton University Press, 1991); and Chyungle Lee, 'Foreign Direct Investment in China: Do State Policies Matter?', Issues and Studies, Vol.33, No.7 (1997), pp.40-61.
18. Robert Kleinberg, China's 'Opening' to the Outside World: The Experiment with Foreign Capitalism (Boulder, CO: Westview, 1990); Margaret M. Pearson, Joint Ventures in the People's Republic of China: The Control of Foreign Direct Investment under Socialism (Princeton, NJ: Princeton University Press, 1991); and Chyungle Lee, 'Foreign Direct Investment in China: Do State Policies Matter?', Issues and Studies, Vol.33, No.7 (1997), pp.40-61.
19. In Kleinberg's own words, 'The effectiveness of state intervention into China's economic relations invalidates the "dependent development" model as a description of multinational corporate investment in Communist countries': see Kleinberg, China's 'Opening' to the Outside World, p.256. What Kleinberg actually meant by 'dependent development' was 'classical dependency'. He did not make any distinction between the two concepts.
20. Adrian Leftwich, 'Bringing Politics Back In: Towards a Model of the Developmental State', The Journal of Development Studies, Vol.31, No.3 (1995), pp.400-427 (pp.401, 420).
21. M. Douglass, 'The "Developmental State" and the Newly Industrialised Economies of Asia', Environment and Planning, Vol.26 (1994), pp.543-66; Ziya Onis, 'The Logic of the Developmental State', Comparative Politics, Vol.24, No.1 (1991), pp.109-26; Mark R. Thompson, 'Late Industrialisers, Late Democratisers: Developmental States in the Asia-Pacific', Third World Quarterly, Vol.17, No.4 (1996), pp.625-47.
22. M. Douglass, 'The "Developmental State" and the Newly Industrialised Economies of Asia', Environment and Planning, Vol.26 (1994), pp.543-66; Ziya Onis, 'The Logic of the Developmental State', Comparative Politics, Vol.24, No.1 (1991), pp.109-26; Mark R. Thompson, 'Late Industrialisers, Late Democratisers: Developmental States in the Asia-Pacific', Third World Quarterly, Vol.17, No.4 (1996), pp.625-47.
23. M. Douglass, 'The "Developmental State" and the Newly Industrialised Economies of Asia', Environment and Planning, Vol.26 (1994), pp.543-66; Ziya Onis, 'The Logic of the Developmental State', Comparative Politics, Vol.24, No.1 (1991), pp.109-26; Mark R. Thompson, 'Late Industrialisers, Late Democratisers: Developmental States in the Asia-Pacific', Third World Quarterly, Vol.17, No.4 (1996), pp.625-47.
24. Gordon White and Robert Wade, 'Developmental States and Markets in East Asia: An Introduction', in Gordon White (ed.), Developmental States in East Asia (London: Macmillan, 1988), pp.1-29.
25. Shaun G. Breslin, 'China: Developmental State or Dysfunctional Development?' Third World Quarterly, Vol.17, No.4 (1996), pp.689-706.
26. Philippe C. Schmitter, 'Still the Century of Corporatism?', in Fredrick B. Pike and Thomas Stritch (eds.), The New Corporatism: Social-Political Structures in the Iberian World (Notre Dame, IN: University of Notre Dame Press, 1974), pp.85-131 (pp.93-4).
27. Philippe C. Schmitter, 'Corporatism', in Joel Krieger (ed.), The Oxford Companion to Politics of the World (Oxford: Oxford University Press, 1993), pp.195-8 (p. 197).
28. Peter Nan-Shong Lee, 'The Chinese Industrial State in Historical Perspective: From Totalitarianism to Corporatism', in Brantly Womack (ed.), Contemporary Chinese Politics in Historical Perspective (Cambridge: Cambridge University Press, 1991), pp.153-79.
29. Such a 'licensing' aspect of Chinese corporatism, according to Kerr and MacKay, leads to endemic corruption, poorly defined property rights, and high transaction cost: see William A. Kerr and Ed MacKay, 'Is Mainland China Evolving into a Market Economy?' Issues and Studies, Vol. 33, No.9 (1997), pp.31-45.
30. Jonathan Unger and Anita Chan, 'Corporatism in China: A Developmental State in an East Asian Context', in Barrett L. McCormick and Jonathan Unger (eds.), China After Socialism: In the Footsteps of Eastern Europe or East Asia? (Armonk, NY: M.E. Sharpe, 1996), pp.95-129. For a note on the different uses of the term 'corporatism' by Lee and Chan, see Anita Chan, 'Revolution or Corporatism? Workers and Trade Unions in Post-Mao China', The Australia Journal of Chinese Affairs, No.29 (1993), pp.31-61 (p.36, n.17).
31. Jonathan Unger and Anita Chan, 'Corporatism in China: A Developmental State in an East Asian Context', in Barrett L. McCormick and Jonathan Unger (eds.), China After Socialism: In the Footsteps of Eastern Europe or East Asia? (Armonk, NY: M.E. Sharpe, 1996), pp.95-129. For a note on the different uses of the term 'corporatism' by Lee and Chan, see Anita Chan, 'Revolution or Corporatism? Workers and Trade Unions in Post-Mao China', The Australia Journal of Chinese Affairs, No.29 (1993), pp.31-61 (p.36, n.17).
32. According to Margaret M. Pearson, such 'state-led societal corporatism' allows the socialist regime to pre-empt the emergence of autonomous groups: see her 'The Janus Face of Business Associations in China: Socialist Corporatism in Foreign Enterprises', Australian Journal of Chinese Affairs, No.31 (1994), pp.25-416 (p.33).
33. Unger and Chan, 'Corporatism in China', pp.107-28.
34. Jean C. Oi, 'Fiscal Reform and the Economic Foundations of Local State Corporatism in China', World Politics, Vol. 45 (1992), pp.99-126; Jean C. Oi, 'The Role of the Local State in China's Transitional Economy', The China Quarterly, No.144 (1995), pp.1132-49.
35. Jean C. Oi, 'Fiscal Reform and the Economic Foundations of Local State Corporatism in China', World Politics, Vol. 45 (1992), pp.99-126; Jean C. Oi, 'The Role of the Local State in China's Transitional Economy', The China Quarterly, No.144 (1995), pp.1132-49.
36. Oi, 'Fiscal Reform', pp.100-101; original italics.
37. Shaoguang Wang, 'The Rise of the Regions: Fiscal Reform and the Decline of Central State Capacity in China', in Andrew G. Walder (ed.), The Waning of the Communist State: Economic Origins of Political Decline in China and Hungary (Berkeley, CA: University of California Press, 1995), pp.87-113.
38. Oi, 'The Role of the Local State', p.1147.
39. Oi, 'Fiscal Reform', p.124.
40. Oi, 'The Role of the Local State', p.1133.
41. Oi, 'Fiscal Reform', p.100.
42. Marc Blecher, 'Development State, Entrepreneurial State: The Political Economy of Socialist Reform in Xinju Municipality and Guanghan County', in Gordon White (ed.), The Chinese State in the Era of Economic Reform: the Road to Crisis (London: Macmillan, 1991), pp.265-91; Jane Duckett, 'The Emergence of the Entrepreneurial State in Contemporary China', The Pacific Review, Vol.9, No.2 (1996), pp.180-98.
43. Marc Blecher, 'Development State, Entrepreneurial State: The Political Economy of Socialist Reform in Xinju Municipality and Guanghan County', in Gordon White (ed.), The Chinese State in the Era of Economic Reform: the Road to Crisis (London: Macmillan, 1991), pp.265-91; Jane Duckett, 'The Emergence of the Entrepreneurial State in Contemporary China', The Pacific Review, Vol.9, No.2 (1996), pp.180-98.
44. Blecher, 'Development State, Entrepreneurial State', p.268.
45. Ibid., p.266.
46. Ibid., p.287.
47. Ibid., pp.283-5.
48. Duckett, 'The Emergence of the Entrepreneurial State', p.189.
49. Ibid.
50. Jude Howell, China Opens its Doors: The Politics of Economic Transition (Boulder, CO: Lynne Rienner, 1993).
51. Ibid., p.181.
52. Ibid., pp.193-4.
53. Ibid., pp.186-200.
54. Morris Bornstein, 'Privatization in Central and Eastern Europe: Techniques, Policy Options and Economic Consequences', in László Csaba (ed.), Privatization, Liberalization and Destruction: Recreating the Market in Central and Eastern Europe (Aldershot: Dartmouth, 1994), pp.233-58 (p.234).
55. Shu-Yun Ma, 'Shareholding System Reform: The Chinese Way of Privatization', Communist Economies and Economic Transformation, Vol.7, No.2 (1995), pp.159-74 (pp.160-64).
56. Shu Y. Ma, 'The Chinese Route to Privatization', Asian Survey, Vol. 38, No.4 (April 1998), pp.379-97.
57. Existing studies of China's spontaneous and 'pseudo' privatization include Alan Gelb, Gary Jefferson and Inderjit Singh, 'Can Communist Economies Transform Incrementally? The Experience of China', The Economics of Transition, Vol.1, No.4 (1993), pp.401-35; David D. Li, 'A Theory of Ambiguous Property Rights in Transition Economies: The Case of the Chinese Non-State Sector', Journal of Comparative Economics, Vol.23, No.1 (1996), pp.1-19; Victor Nee, 'Organizational Dynamics of Market Transition: Hybrid Forms, Property Rights, and Mixed Economy in China', Administrative Science Quarterly, Vol. 37, No.1 (1992), pp. 1-27; Louis Putterman, 'The Role of Ownership and Property Rights in China's Economic Transition', The China Quarterty, No.144 (1995), pp.1047-64; and Andrew Walder, 'Local Government as Industrial Firms: An Organizational Analysis of China's Transitional Economy', American Journal of Sociology, Vol.101, No.2 (1995), pp.263-301.
58. Existing studies of China's spontaneous and 'pseudo' privatization include Alan Gelb, Gary Jefferson and Inderjit Singh, 'Can Communist Economies Transform Incrementally? The Experience of China', The Economics of Transition, Vol.1, No.4 (1993), pp.401-35; David D. Li, 'A Theory of Ambiguous Property Rights in Transition Economies: The Case of the Chinese Non-State Sector', Journal of Comparative Economics, Vol.23, No.1 (1996), pp.1-19; Victor Nee, 'Organizational Dynamics of Market Transition: Hybrid Forms, Property Rights, and Mixed Economy in China', Administrative Science Quarterly, Vol. 37, No.1 (1992), pp. 1-27; Louis Putterman, 'The Role of Ownership and Property Rights in China's Economic Transition', The China Quarterty, No.144 (1995), pp.1047-64; and Andrew Walder, 'Local Government as Industrial Firms: An Organizational Analysis of China's Transitional Economy', American Journal of Sociology, Vol.101, No.2 (1995), pp.263-301.
59. Existing studies of China's spontaneous and 'pseudo' privatization include Alan Gelb, Gary Jefferson and Inderjit Singh, 'Can Communist Economies Transform Incrementally? The Experience of China', The Economics of Transition, Vol.1, No.4 (1993), pp.401-35; David D. Li, 'A Theory of Ambiguous Property Rights in Transition Economies: The Case of the Chinese Non-State Sector', Journal of Comparative Economics, Vol.23, No.1 (1996), pp.1-19; Victor Nee, 'Organizational Dynamics of Market Transition: Hybrid Forms, Property Rights, and Mixed Economy in China', Administrative Science Quarterly, Vol. 37, No.1 (1992), pp. 1-27; Louis Putterman, 'The Role of Ownership and Property Rights in China's Economic Transition', The China Quarterty, No.144 (1995), pp.1047-64; and Andrew Walder, 'Local Government as Industrial Firms: An Organizational Analysis of China's Transitional Economy', American Journal of Sociology, Vol.101, No.2 (1995), pp.263-301.
60. Existing studies of China's spontaneous and 'pseudo' privatization include Alan Gelb, Gary Jefferson and Inderjit Singh, 'Can Communist Economies Transform Incrementally? The Experience of China', The Economics of Transition, Vol.1, No.4 (1993), pp.401-35; David D. Li, 'A Theory of Ambiguous Property Rights in Transition Economies: The Case of the Chinese Non-State Sector', Journal of Comparative Economics, Vol.23, No.1 (1996), pp.1-19; Victor Nee, 'Organizational Dynamics of Market Transition: Hybrid Forms, Property Rights, and Mixed Economy in China', Administrative Science Quarterly, Vol. 37, No.1 (1992), pp. 1-27; Louis Putterman, 'The Role of Ownership and Property Rights in China's Economic Transition', The China Quarterty, No.144 (1995), pp.1047-64; and Andrew Walder, 'Local Government as Industrial Firms: An Organizational Analysis of China's Transitional Economy', American Journal of Sociology, Vol.101, No.2 (1995), pp.263-301.
61. Existing studies of China's spontaneous and 'pseudo' privatization include Alan Gelb, Gary Jefferson and Inderjit Singh, 'Can Communist Economies Transform Incrementally? The Experience of China', The Economics of Transition, Vol.1, No.4 (1993), pp.401-35; David D. Li, 'A Theory of Ambiguous Property Rights in Transition Economies: The Case of the Chinese Non-State Sector', Journal of Comparative Economics, Vol.23, No.1 (1996), pp.1-19; Victor Nee, 'Organizational Dynamics of Market Transition: Hybrid Forms, Property Rights, and Mixed Economy in China', Administrative Science Quarterly, Vol. 37, No.1 (1992), pp. 1-27; Louis Putterman, 'The Role of Ownership and Property Rights in China's Economic Transition', The China Quarterty, No.144 (1995), pp.1047-64; and Andrew Walder, 'Local Government as Industrial Firms: An Organizational Analysis of China's Transitional Economy', American Journal of Sociology, Vol.101, No.2 (1995), pp.263-301.
62. Zhengquan cidian (Securities Dictionary) (ZC) (Shanghai: Fudan University, 1993), p.58.
63. Ma, 'Shareholding System Reform', pp.168-9.
64. ZC, p.50.
65. World Bank, China: The Emerging Capital Market, Vol.2 (Washington, DC: The World Bank, 1995), pp.132-3.
66. Unless stated otherwise, the following summary of the regulatory structure of China's securities markets is based on World Bank, China: The Emerging Capital Market, pp.19-37.
67. Xinbao (Economic Journal Daily) (XB), 16 Aug. 1997.
68. This section is based largely on Shu-Yun Ma, 'Foreign Participation in China's Privatization', Communist Economies and Economic Transformation, Vol.8, No.4 (1996), pp.529-47.
69. Jinrong shibao (Securities Daily) (JS), 17 Aug. 1994; 23 Aug. 1995; China Daily (CD), 24 Aug. 1995; Zhongguo zhengquan bao (China Securities) (ZZB), 25 Aug. 1995.
70. Jinrong shibao (Securities Daily) (JS), 17 Aug. 1994; 23 Aug. 1995; China Daily (CD), 24 Aug. 1995; Zhongguo zhengquan bao (China Securities) (ZZB), 25 Aug. 1995.
71. Jinrong shibao (Securities Daily) (JS), 17 Aug. 1994; 23 Aug. 1995; China Daily (CD), 24 Aug. 1995; Zhongguo zhengquan bao (China Securities) (ZZB), 25 Aug. 1995.
72. Jinrong shibao (Securities Daily) (JS), 17 Aug. 1994; 23 Aug. 1995; China Daily (CD), 24 Aug. 1995; Zhongguo zhengquan bao (China Securities) (ZZB), 25 Aug. 1995.
73. XB, 6 Feb. 1996; Ming Bao (MB), 30 Jan. and 7 Feb. 1996.
74. XB, 6 Feb. 1996; Ming Bao (MB), 30 Jan. and 7 Feb. 1996.
75. South China Morning Post (SCMP), 1 April 1996.
76. 'Regulations of the State Council on domestically-listed shares for overseas investors': full text in China Economic News (CEN), 29 April 1996.
77. XB, 22 Jan. 1996.
78. The other market 'rescue' measures include temporary suspension of new listings of A-shares, development of Chinese mutual funds, and provision of financing to high-quality securities firms: ZZB, 30 July 1994; CEN, 22 Aug. 1994.
79. The other market 'rescue' measures include temporary suspension of new listings of A-shares, development of Chinese mutual funds, and provision of financing to high-quality securities firms: ZZB, 30 July 1994; CEN, 22 Aug. 1994.
80. CD, 7 Aug. 1995.
81. JS, 17 Aug. 1994.
82. SCMP, 9 March 1996.
83. ZZB, 23 Sept. and 22 Nov. 1994; JS, 27 Jan. 1995.
84. ZZB, 23 Sept. and 22 Nov. 1994; JS, 27 Jan. 1995.
85. World Bank, China: The Emerging Capital Market, pp 127-9.
86. Li Wuwei and Yu Wenhua (eds.), Shanghai zhengquan nianjian 1995 (Shanghai Securities Yearbook 1995) (Shanghai: Shanghai Academy of Social Science Press, 1995), pp.56-7.
87. JS, 27 Nov. 1994.
88. Solomon M. Karmel, 'Securities Markets and China's International Economic Integration', Journal of International Affairs, Vol. 49, No.2 (1966), pp.525-56 (p.551).
89. ZZB, 11, 14 and 17 Aug. 1995; JS, 22 Aug. and 19 Oct. 1995; SCMP, 23 Feb. 1996.
90. ZZB, 11, 14 and 17 Aug. 1995; JS, 22 Aug. and 19 Oct. 1995; SCMP, 23 Feb. 1996.
91. ZZB, 11, 14 and 17 Aug. 1995; JS, 22 Aug. and 19 Oct. 1995; SCMP, 23 Feb. 1996.
92. Zhengjuan shichang zhoukan (Securities Market Weekly) (ZSZ), 2 Dec. 1995.
93. ZZB, 26 Jan. 1996; SCMP, 27 Jan. 1996; MB, 30 Jan. 1996; Yazhou zhoukan (Asia Week) (YZ), 11 Feb. 1996.
94. ZZB, 26 Jan. 1996; SCMP, 27 Jan. 1996; MB, 30 Jan. 1996; Yazhou zhoukan (Asia Week) (YZ), 11 Feb. 1996.
95. ZZB, 26 Jan. 1996; SCMP, 27 Jan. 1996; MB, 30 Jan. 1996; Yazhou zhoukan (Asia Week) (YZ), 11 Feb. 1996.
96. ZZB, 26 Jan. 1996; SCMP, 27 Jan. 1996; MB, 30 Jan. 1996; Yazhou zhoukan (Asia Week) (YZ), 11 Feb. 1996.
97. JS, 7 June and 4 Aug. 1995; ZZB, 30 Aug. 1995.
98. JS, 7 June and 4 Aug. 1995; ZZB, 30 Aug. 1995.
99. Morris Goldstein and David Folkerts-Landau, International Capital Markets: Developments, Prospects, and Policy Issues (Washington, DC: International Monetary Fund, 1994), p.99; ZZB, 21 Feb. 1995.
100. Morris Goldstein and David Folkerts-Landau, International Capital Markets: Developments, Prospects, and Policy Issues (Washington, DC: International Monetary Fund, 1994), p.99; ZZB, 21 Feb. 1995.
101. Goldstein and Folkerts-Landau, International Capital Markets, p.99; ZSZ, 2 July 1994.
102. Goldstein and Folkerts-Landau, International Capital Markets, p.99; ZSZ, 2 July 1994.
103. Goldstein and Folkerts-Landau, International Capital Markets, pp.99-100; Special Correspondent, 'The Development of the "H-Share" Market in Hong Kong', in Philip Jay (ed.), China Securities Handbook 1994 (Hong Kong: Philip Jay Publishing, 1994), pp.29-32 (p.29); Elizabeth Hernandez, 'Mergers and Acquisitions in China: Some Issues and Perspectives', China Banking and Finance, 1 Nov. 1995, pp.3-7 (p.4).
104. Goldstein and Folkerts-Landau, International Capital Markets, pp.99-100; Special Correspondent, 'The Development of the "H-Share" Market in Hong Kong', in Philip Jay (ed.), China Securities Handbook 1994 (Hong Kong: Philip Jay Publishing, 1994), pp.29-32 (p.29); Elizabeth Hernandez, 'Mergers and Acquisitions in China: Some Issues and Perspectives', China Banking and Finance, 1 Nov. 1995, pp.3-7 (p.4).
105. Goldstein and Folkerts-Landau, International Capital Markets, pp.99-100; Special Correspondent, 'The Development of the "H-Share" Market in Hong Kong', in Philip Jay (ed.), China Securities Handbook 1994 (Hong Kong: Philip Jay Publishing, 1994), pp.29-32 (p.29); Elizabeth Hernandez, 'Mergers and Acquisitions in China: Some Issues and Perspectives', China Banking and Finance, 1 Nov. 1995, pp.3-7 (p.4).
106. World Bank, China: The Emerging Capital Market, p.135; SCMP, 29 March 1996.
107. World Bank, China: The Emerging Capital Market, p.135; SCMP, 29 March 1996.
108. CEN, 2 June 1997.
109. ZSZ, 16 July 1994, p.20.
110. Namely, 'Special Regulations Relating to Shareholding Companies Issuing Shares and Listing Abroad'.
111. World Bank, China: The Emerging Capital Market, pp.26, 47-9.
112. CD, 19 Feb., 25 April and 17 May 1994; CEN, 30 May 1994; MB, 15 March 1996.
113. CD, 19 Feb., 25 April and 17 May 1994; CEN, 30 May 1994; MB, 15 March 1996.
114. CD, 19 Feb., 25 April and 17 May 1994; CEN, 30 May 1994; MB, 15 March 1996.
115. Hu Shuli, '"Zhongce xianxiang": guanyu "waizi gaizao" de jiexi yu sikao' (The 'China Strategic Investment phenomenon': analysis and thought on 'transformation with foreign capital), Gaige (Reform), 1994, No.3, pp.74-84 (pp.74-6); Hernandez, 'Mergers and Acquisitions in China', p.6.
116. Hu Shuli, '"Zhongce xianxiang": guanyu "waizi gaizao" de jiexi yu sikao' (The 'China Strategic Investment phenomenon': analysis and thought on 'transformation with foreign capital), Gaige (Reform), 1994, No.3, pp.74-84 (pp.74-6); Hernandez, 'Mergers and Acquisitions in China', p.6.
117. Hu, 'Zhongce xianxiang'.
118. Li Shuguang, 'Yi kaifang de xintai kandai "Zhongce xianxiang"' (Look at the 'China s Strategic Investment phenomenon' with an open mind), Gaige, 1994, No.5, pp.115-19.
119. Guoji shangbao (International Business Post) (GS), 6 Aug. 1994.
120. Qin Hai, '"Zhongce xianxiang": youdai geng chongfen de pouxi' (The 'China Strategic Investment phenomenon': still waiting for more analysis), Gaige, 1994, No.4, pp.56-63.
121. JS, 7 Dec. 1994.
122. Jingji ribao (Economic Daily) (JR), 1 Nov. 1995.
123. MB, 16 Nov. 1995.
124. Ibid.
125. Cole R. Capener, A Guidebook to Mergers and Acquisitions in China (Hong Kong: Asia Information Associates, 1966); Hernandez, 'Mergers and Acquisitions in China', pp.4 and 6.
126. Cole R. Capener, A Guidebook to Mergers and Acquisitions in China (Hong Kong: Asia Information Associates, 1966); Hernandez, 'Mergers and Acquisitions in China', pp.4 and 6.
127. For an institutionalist analysis of the role of local initiatives in 'grafting into foreign capital', see Edward X. Gu, 'Foreign Direct Investment and the Restructuring of Chinese State-Owned Enterprises (1992-1995): A New Institutionalist Perspective', China Information, Vol.XII, No.3 (Winter 1997-98), pp.46-71.
128. You Ji, 'Corporatization, Privatization, and the New Trend in Mainland China's Economic Reform', Issues and Studies, Vol.31, No.4 (1995), pp.28-61 (pp.35-6).
129. CEN: 31 July 1995.
130. Gaige neican (Internal Reference on Reform) (GN), 1997, No.20, p.10.
131. Zhongguo zhengquan qihuo tongji nianjian (ZZQTN) (China Securities and Futures Statisticsal Yearbook), 1996, p.35. The actual extent of foreign involvement in China's privatization should be larger than the figures here suggest, because they cover only privatization through issue of B-shares and H-shares, and do not include purchase of A-shares by foreigners, conversion of state shares and corporate shares into foreign shares, issue of N-shares, and mergers and acquisitions by foreigners.
132. For a detailed analysis of the Chinese state as a shareholder, see World Bank, China's Management of Enterprise Assets: The State as Shareholder (Washington, DC: World Bank, 1997).