Politicizing Business: How Firms Are Made to Serve the Party-State in China

The Chinese state has never granted businesses full autonomy, even amid efforts to establish market-supporting institutions. Instead, the state and its officials view business as primarily political actors, demanding political services from firms to advance political objectives. Politicizing Business demonstrates that the politicization of firms is rooted in authoritarianism, often harming business interests and undermining China’s efforts to attract and retain investment. Explaining the seemingly arbitrary state takeover of sectors and firms, this book uncovers previously overlooked forms of politicization and demonstrates how politicizing business often creates conflicts between the state and firms, particularly private firms, leading to a state-dominated market in many sectors. Combining academic rigor with exceptionally rich data and analysis, including hundreds of in-depth interviews with government officials and business leaders, original datasets and case studies, Politicizing Business offers fresh insights into China’s political economy model and explores what the Party-state demands from companies, how compliance is enforced, when and where firms are politicized, and its impact on China’s development.