China is transitioning from FDI attraction to domestic upgrading. Tensions emerged between avoiding the fall china’s economic restructuring pdf departments of international commerce and domestic technology.
The vested interest bureaucrats in international commerce were the key to allocation of state support. Foreign firms affected the cohesiveness and strength of the vested interests. How does a globalized context influence domestic development policies and the allocation of government resources in an authoritarian country like China? Drawing on comparative case studies, semi-structured interviews and newly compiled data at the city level, the study finds that the varied levels of government support for domestic upgrading are shaped by coalitions for or against the transition. The major obstacle for bureaucrats within a city government to garner resources for domestic technology does not directly depend on the overall level of FDI.
Rather, it comes from the vested interest of international commerce bureaucrats. These bureaucrats are more likely to form a cohesive coalition when the export share of foreign firms is large. At the same time, such a coalition is more likely to gain political influence when industrial sales are concentrated in large firms. The direction and magnitude of foreign capital influence, therefore, is channeled and manifested through local bureaucratic coalitions. This study sheds light on the politics of implementing development policies in an era in which globalization has cultivated fragmented interests within the local bureaucracy. Check if you have access through your login credentials or your institution.
Distress and restructuring in China: Does ownership matter? We investigate the market impact of restructuring announcements made by distressed firms in China. We show that ownership structure is an important determinant of the strength of firms and their survival following distress. For example, mergers and acquisitions are value-enhancing only for competitive firms that are privately owned and when cash payment is involved. Mergers and acquisitions among state-owned enterprises by transferring the controlling ownership, either with or without payment, are not value-enhancing. Also, debt governance is not at work among state-owned enterprises and thus debt-related restructuring is not value-enhancing either.
Asset sales are not perceived positively by the market either for competitive or for state-owned firms. The fundamental conclusion is that government ownership has an adverse impact on the distress-resolution process as it distorts resource allocation, management incentives and investment decisions in a liberalised and competitive environment. Reform and opening” redirects here. Flag of the People’s Republic of China. China had long been one of the richest, that is, one of the most fertile, best cultivated, most industrious, most prosperous and most urbanized countries in the world. Economic reforms introducing market principles began in 1978 and were carried out in two stages.