The demise of state-owned enterprises, the transformation of
collectives into shareholding cooperatives, and the creation of
investment opportunities through stock markets indicate China's
movement from a socialist, state-controlled economy toward a
socialist market economy. Yet, contrary to high expectations that
China's new enterprises will become like corporations in capitalist
countries, management often remains under the control of the
onetime bureaucrats who ran the socialist enterprises.
The concepts, definitions, and interpretations of property
rights, corporate structures, and business practices in
contemporary China have historical, institutional, and cultural
roots. In tracing the development under founder Zhang Jian
(1853-1926) and his successors of the Dasheng Cotton Mill in
Nantong into a business group encompassing, among other concerns,
cotton, flour, and oil mills, land development companies, and
shipping firms, the author documents the growth of regional
enterprises as local business empires from the 1890s until the
foundation of the People's Republic in 1949. She focuses on the
legal and managerial evolution of limited-liability firms in China,
particularly issues of control and accountability; the introduction
and management of industrial work in the countryside; and the
integration and interdependency of local, national, and
international markets in Republican China.
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