Dual public and private governance of companies in China: a multifaceted appraisal

This Chapter explores the state's role in governing Chinese companies, aiming to develop an analytical framework based on empirical evidence. It examines how formal law integrates into Chinese society, shaped by ideological shifts from Marxism-Leninism-Maoism to Xi Jinping Thought. Communist Party organizations are mandated within companies, increasingly in private ones, yet their governance impact is poorly understood. This dual public-private governance model raises concerns, particularly for overseas investors unfamiliar with Chinese politics. Using corporate disclosures on ownership structure and material changes, the study analyses the interplay of law and politics in China, focusing on ownership structures, policy changes, and party organization mandates. It combines normative analysis and empirical data to unravel the complex dynamics of corporate governance in both state-owned and private Chinese companies.