Corporate Governance Practices in China
Corporate governance is the system by which companies are directed and controlled. Corporate Governance is important because it is part of the institutional infrastructure (laws, regulations, institutions and enforcement mechanisms) underlying sound economic performance. I would like to perform my research on the topic of corporate governance practices in China for the following reasons: The political system in China is unique, not like other democratic countries, the Chinese Communist Party is the sole party in power in China. It is a monolithic, monopolistic ruling party that dominated Chinese political, economic, social and cultural life. Because of this unique political system, the economic structure in China is also different from other countries, such as USA, Canada, Germany and Japan, etc. Before 1980s, China had a planned economy and all enterprises were owned by the central government. Since the 1980s, the Chinese economy has been transformed from a planned economy to a market economy. Today, there are many different forms of ownership that exist in Chinese enterprises, such as private, shareholding, or joint-venture and state owned. This transformation not only affected on our economic, it also had a huge impact on our daily life. As a Chinese was born and grew up in China, I witnessed this significant change. In the last 30 years, the rate of Chinese economic growth has been almost miraculous, an average of 8 percent growth in GDP per annum. This rapidly expanding led China to be the biggest economy after the United States and most analysts predict China will become the largest economy in the world this century. It is always interesting to know the structure of corporate governance in China under its unique political system. How does corporate governance perform under different forms of ownership in China? Is corporate governance effective in China? What are the key corporate governance...
Please join StudyMode to read the full document