The Chinese state is increasingly acquiring stakes in China’s private companies, enabling it to make sure they hew to the party agenda
Chinese state takes stakes known as golden shares, which are often small but give the government a board seat and power to ensure that corporate behavior hews to the party agendagreg baker/AFP/Getty ImagesIn its uneasy dance with China’s private sector, the Communist Party is moving away from a public battle with some of the country’s biggest companies. Instead, it is inching toward a quieter form of control.
At the center of the effort is a push by various levels of government to take stakes in the private companies that have long driven Chinese innovation and job creation.
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