The Governance Structures of Chinese Firms: China's Innovation System and Chinese Model

ISBN-13: 9783030522209 / Angielski / Miękka / 2022

Chun Liao

Opis

China’s extraordinary economic growth is inspiring research from a wide spectrum of fields to explain the phenomenon: What are the primary drivers of China’s economic growth? Can it be sustained? Can the Chinese business model be emulated by other countries? What long-term effects will China’s economic growth have on the global economy? In this volume, Chun Liao explores these issues in the context of firms’ governance structures, arguing that China’s dual business system of state-owned enterprises and private enterprises is uniquely suited to the challenges of economic development in the twenty-first century. On the one hand, China’s state-owned enterprises are characterized by state coordination, bank financing, insulation from the stock market fluctuations, and incremental productivity-enhancing innovations, which are similar to the firms in the business systems of coordinated market economies (like Germany and Japan). On the other hand, China’s private enterprises are characterized by private (often family) ownership, hard budget constraints, profit maximization, and more risky radical innovation, which are similar to the firms in the business systems of liberal market economies (like the US and the UK). Based on the state controlling shareholding in the state sector, the boundary between the state sector business system and private sector business system is clear. This dual type system is contrasted with those in liberal market economies and those in coordinated market economies, where only one type system dominates. Drawing from empirical data and industry analysis over the past 15 years, Liao provides unparalleled access to the dynamics of the Chinese economy, including ownership structure, management design, labor-management relations, business infrastructure, capitalization (including role of banks and financial institutions, private investment, and FDI) in both the public and private sectors. In the process, she analyzes both opportunities and challenges that result from China’s dual business system, particularly in regard to innovation, core competitiveness, and sustainable growth in both state strategic technology-based industries and private high technology industries . The result is an approach that sheds new light on China’s economic performance and its rise as a player on the international stage.

Spis treści

Chapter 1. Different Economic Models and Their Correspondingly Different Innovation Systems.- Chapter 2. the Economic Model and Innovation System of Chinese State Sector​.- Chapter 3. the Economic Model and Innovation System of Chinese Private Sector.- Chapter 4. Foreign Direct Investment, Technology Transfer, and Dual Convergence Drive Chinese Economic Catching-up and Innovation Development.- Conclusion.

O autorze

Chun Liao (廖春) is Professor of Economics at Shanghai Lixin University of Accounting and Finance in Shanghai, China. She holds a Ph.D from Free University of Berlin in Germany. She has published more than 40 articles on Chinese business, economics, and policy.

Blurb

This book systematically defines and analyses the rise of China’s innovation system and Chinese corporate governance model. China’s achievement in artificial intelligence and high technology innovation has attracted the global attention. The country’s innovation system and Chinese model arose during the period between the mid-1990s and the first decade of 21 century, making it one of the leading countries in those fields.

This revised and expanded edition examines the Chinese innovation business model based on the basic concept of firm’s governance structure. It builds upon five dimensions: ownership and shareholding structure; interrelation between employer and employee; interrelation between firms; financing pattern and performance criteria; and innovation system and core competitiveness. This book also compares China’s innovation system with the American model and with the European model exemplified by Germany.