Geography 3422A/B Study Guide - Nepotism, Guanxi, Renationalization Of Ypf
7 Apr 2013
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The party state exercises power through two institutions: the state-owned assets supervision and administration. The number of companies under its supervision has declined from 198 in 2003 to 121 today. It has been implementing the party"s policy of creating a harmonious society by regulating pay. Has been trying to force the soes to pay higher dividends to the government: communist party"s organization department. It appoints all the senior figures in china inc. and continuously switches around bosses of big airline, telecoms and oil companies. They care more about pleasing their party bosses than about the global market. The party state reinforces its power by creating vertical business groups: most emerging markets (including hong kong) have horizontal business groups: Companies sprawl into adjacent businesses telecoms into hotels, shipping into property in order to exploit their local connections: in china business groups focus on industries.
