This chapter analyzes the state-owned enterprises in China today. It begins with a discussion on state sector. It also considers the way in which Chinese people make sense of historical and cultural aspects of their world that have a bearing on the structuring of the instruments of economic action by the state. The focus is placed on the notion of the patrimonial state, a view of the society that makes it normal to look to the government — rather than to other societal institutions such as those of civil society — to provide the order the society needs, but which as well as allocating that duty to government, allocates with it the right to largely unquestioned power. It then turns to the institutional layer of the model and examines how China orders the sourcing and allocation of capital and human capital, and how social capital plays a part. Moreover, it addresses how alliances bring things together, and will conclude that in general they do not.
Keywords: state-owned enterprises; China; state sector; Chinese; human capital; social capital
Chapter. 8396 words. Illustrated.
Subjects: International Business
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