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Journal Article

Perspectives on the Development of the Private Business Sector in China


ten Brink,  Tobias
Institutioneller Wandel im gegenwärtigen Kapitalismus, MPI for the Study of Societies, Max Planck Society;
Goethe University, Frankfurt, Germany;

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ten Brink, T. (2012). Perspectives on the Development of the Private Business Sector in China. China: An International Journal, 10(3), 1-19.

Cite as: https://hdl.handle.net/11858/00-001M-0000-000E-E506-7
This article reviews new literature on the development of China's private sector. Since this sector's development is embedded in and characterised by a wider institutional environment, several general characteristics of China's capitalist transformation are discussed. Insights drawn from political science help in the understanding of the strategy of "wearing a red hat" and the emergence of China's private sector. The closely interwoven relationships between private companies and the Party-state that have taken place since the 1990s are also examined. The review indicates that focusing on state/capital relationships at different administrational levels contributes to a better understanding of China's private sector. The main conclusion is that although the development of the new private enterprises enabled the ruling elite to form and consolidate a hegemonic project that provided relative societal coherence, the project's continuity is threatened by a tendency for crises to occur.