Big Business and Cadre Management in China

Authors

  • Kjeld Erik Brødsgaard Copenhagen Business School
  • Kasper Ingeman Beck Copenhagen Business School

DOI:

https://doi.org/10.22439/cjas.v39i2.6399

Keywords:

Chinese Communist Party (CCP), elite politics, state-owned enterprises, government-business relations, nomenklatura, government officials

Abstract

Leading cadres in China are subject to rotation. An interesting form of rotation takes place between big business and the political world. That means one fifth of China’s governors and vice governors have a business background as heads of one of China’s large State-Owned Enterprises (SOEs). How this takes place and which qualifications the involved business leaders possess are shrouded in mystery. Based on prosopographical studies of Chinese business leaders who have participated in the Chinese Executive Leadership Program (CELP), this article attempts to open the black box. The study examines the career pathways of CELP participants in Party, government and business positions. The study shows that 84 of the 261 CELP SOE participants (2005-2018) were subsequently promoted, and 20 of these promotions were from SOEs to leading Party and government positions. In some cases, former business leaders became Party secretaries in important provinces or ministers in key ministries. The article also argues that Chinese business leaders have managed to keep their administrative ranking in the Chinese nomenklatura system. In fact, Chinese business leaders are quasi officials (zhun guan) and form an important recruitment base for leadership renewal. As such, the article suggests that the rotation of cadres within the ‘Iron Triangle’ of Party–government–business constitutes the main unifying and stabilising factor in the Chinese political system.

Author Biographies

Kjeld Erik Brødsgaard, Copenhagen Business School

KJELD ERIK BRØDGAARD is Professor of China Studies at the Department of International Economics, Government and Business, CBS. His current research covers state–Party–business relations; the nomenklatura system and cadre management in the CCP; Chinese business groups; and Chinese economic thinking and development.

Kasper Ingeman Beck, Copenhagen Business School

KASPER INGEMAN BECK is Postdoctoral Researcher at the Department of International Economics, Government and Business, CBS, and is affiliated with the Sino-Danish Center for Education and Research, University of Chinese Academy of Sciences. His current research covers Chinese state-owned enterprise reforms and governance; state-owned capital funds; and state–Party–business relations.

References

Blanchette, Jude. 2020. ‘From “China Inc.” to “CCP Inc.”: A New Paradigm for Chinese State Capitalism’. China Leadership Monitor 66 (Winter 2020): 1-13.

Brødsgaard, Kjeld Erik 2012a. ‘Cadre and Personnel Management in the CPC’. China: An International Journal 10 (2): 69-83.

Brødsgaard, Kjeld Erik 2012b. ‘Politics and Business Group Formation in China: The Party in Control?’ The China Quarterly 211 (September): 624-648. https://doi.org/10.1017/s0305741012000811.

Brødsgaard, Kjeld Erik, and Chen Gang 2009. ‘China’s Attempt to Professionalize its Civil Service’. EAI Background Brief 94.

Burns, John P. 1994. ‘Strengthening Central Party Control of Leadership Selection: The 1990 Nomenklatura’. The China Quarterly 138 (June): 458-491. https://doi.org/10.1017/s0305741000035840.

CCP 2018. Zhonggong zhongyang guanyu shenhua dang he guojia jigou gaige de jueding – 2018 nian 2 yue 28 ri Zhongguo gongchandang di shijiu zhongyang weiyuanhui di san ci quanti huiyi tongguo (Decision of the Central Committee on Deepening Reform of Party and State Institutions – Adopted at the Third Plenary Session of the 19th Central Committee of the Communist Party of China on 28 February 2018). Beijing: Xinhua. Accessed 28 September 2021, http://www.xinhuanet.com/politics/2018-03/04/c_1122485476.htm.

Chen, Jay Chih-Jou 2006. ‘Elite Mobility in Post-Reform Rural China’. Issues and Studies 42 (2): 53-83.

China Daily 2014. ‘Pay cuts approved for SOEs’. China Daily August 30-31.

China Radio Network 2014. ‘Yangqi gaoguan xinchou tiaozheng caoan: xiaojian 70% nian xin bu neng chao 60 wan’ (Draft for Regulating the Salary of Executives of Central Enterprises: Reducing by 70 per cent, Yearly Salary can not Exceed 600,000). Zhongguo guangbo wang (China Radio Network). Accessed 28 September 2021, http://china.cnr.cn/xwwgf/201408/t20140827_516310751.shtml.

Deng, Xiaoping 1983. ’Dang he guojia lingdao zhidu de gaige’ (Reform of the Leadership System of Party and State). In Xiaoping Deng Deng Xiaoping wenxuan 1975-1982 (Selected works by Deng Xiaoping 1975-1992). Shanghai: Renmin chubanshe.

FBIS 1986. ‘A Speech of Deng Xiaoping for Restricted Use Only’. Foreign Broadcast Information Service Daily Reports FBIS-CHI-86-117 (June 18): W1-2.

Gao, Minghua (2013). Zhongguo shangshi gongzi gaoguan xinchou zhishu baogao (Index of China’s Listed Companies: Report on Executive Compensation, 2013). Beijing: Jingji kexue chubanshe.

Landry, Pierre F., Xiaobo Lü, and Haiyan Duan 2014. Does Performance Matter? Evaluating Political Selection Along the Chinese Administrative Ladder. Paper presented at the ‘APSA 2014 Annual Meeting’, Washington DC, 2 August 2014. Accessed 29 September 2021, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2452482.

Lee, Charlotte 2015. Party Adaption and Elite Training in China. Cambridge: Cambridge University Press.

Lenin, Vladimir Ilyich 1973. What is to be Done? Burning Questions of Our Movement. Beijing: Foreign Languages Press (originally published 1902).

Leutert, Wendy 2018. ‘The Political Mobility of China’s Central State-Owned Enterprise Leaders’. The China Quarterly 233 (March): 1-21. https://doi.org/10.1017/s0305741017001412.

Li, Hongbin, and Li-An Zhou 2005. ‘Political Turnover and Economic Performance: The Incentive Role of Personnel Control in China’. Journal of Public Economics 89: 1743-1762. https://doi.org/10.1016/j.jpubeco.2004.06.009.

NBS 2013. Zhongguo tongji nianjian 2013 (China Statistical Yearbook 2018). Beijing: Zhongguo tongji chubanshe.

NBS 2018. Zhongguo tongji nianjian 2018 (China Statistical Yearbook 2018). Beijing: Zhongguo tongji chubanshe.

NPC 1993. ‘Guojia gongwuyuan zanxing tiaoli’ (Provisional Civil Service Regulations). In Renshi gongzuo wenjian xuanji 16juan (Selection of personnel working documents vol. 16). Beijing: Zhongguo renshi chubanshe, pp. 5-21.

Pearson, Margaret 2015. ‘State-owned Business and Party-State Regulation in China’s Modern Political Economy’. In Barry Naughton and Kellee Sing Tsai (eds.), State Capitalism, Institutional Adaptation, and the Chinese Miracle. Cambridge: Cambridge University Press, pp. 27-45.

Pearson, Margaret, Meg Rithmire, and Kellee Sing Tsai 2021. ‘Party-State Capitalism in China’. Current History September 2021: 207-213.

Pieke, Frank 2009. The Good Communist: Elite Training and State Building in Today’s China. Cambridge: Cambridge University Press.

Piketty, Thomas 2014. Capital in the Twenty-First Century. Cambridge, MA: The Belknap Press of Harvard University Press.

SASAC 2017. SASAC Statistical Yearbook 2017. Beijing: The State-owned Assets Supervision and Administration Commission of the State Council (SASAC).

SCMP 2021. ‘China’s Big Tech crackdown: Will Beijing’s Efforts Kill the Country’s Most Vibrant Economic Sector?’ South China Morning Post 31 July 2021. Accessed 28 September 2021, https://www.scmp.com/tech/big-tech/article/3143241/chinas-big-tech-crackdown-will-beijings-efforts-kill-countrys-most.

Shambaugh, David 2016. China’s Future. Cambridge: Polity Books.

Shih, Victor, Christopher Adolph, and Mingxing Liu 2012. ‘Getting Ahead in the Communist Party: Explaining the Advancement of Central Committee Members in China’. American Political Science Review 106 (1): 166-187. https://doi.org/10.1017/s0003055411000566.

Sina 2009. ‘Yangqi gao guan xinchou paihang bang’ (Central SOE Executive Salary Ranking). Xinlang shangpin (Sina Shangpin). Accessed 28 September 2021, http://style.sina.com.cn/news/2009-04-15/094238908.shtml.

Sohu 2010. ‘Caizheng bu cha yangqi gao guan qunian xinchou cheng buyi chaoguo yuangong 20 bei’ (The Ministry of Finance Checked the Salary of the Executives of Central Enterprises Last Year and Said it Should not Exceed 20 Times the Employees). Yangcheng wanbao (Yangcheng Evening News). Accessed 28 September 2021, https://business.sohu.com/20101206/n278127808.shtml.

Yang, Ruilong, Yuan Wang, and Huihua Nie 2013. ‘Zhun guanyuan de jinsheng jizhi: Laizi zhongguo yangqi de zhengju’ (The Political Promotion for Quasi-Government Officers: Evidence from Central State-Owned Enterprises in China). Management World 3: 23-33.

Zhang, Jun, Qi Zhang, and Zhikuo Liu 2017. ‘The Political Logic of Partial Reform of China’s State-Owned Enterprises’. Asian Survey 57 (3): 395-415.

Downloads

Published

2021-12-08