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By Kate Hannan

This ebook analyses the economic reform measures taken by means of the chinese language executive throughout the decade 1985-95 and identifies the commercial and political tensions and contradictions that country firm reform has offered to a management rationale on conserving its authoritative political position.Using govt resources and interviews with economists and employees at one in every of China's biggest state-owned firms (The moment Automobile/Dongfeng company ), Hannan concludes that the connection among nation coverage and firm is a fancy two-way approach characterized by way of tensions due to conflicting priorities.

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Extra info for Industrial Change in China: Economic Restructuring and Conflicting Interests (Routledge Studies on China in Transition, 4)

Sample text

From the outset, the management of the Second Automobile/Dongfeng corporation pursued an aggressive growth strategy. When, by the latter 1980s, farming households that earnt off-farm income by undertaking contracted transport jobs found that they had sufficient accumulated funds to purchase a truck, or might be in a position to access rural financing through either formal or informal channels, managers of the corporation were quick to recognise this situation as a source of both market private sales and untied funds.

In spite of government interference in the day-to-day decision-making of enterprise management, in some respects enterprises did come to ‘eat in separate kitchens’, but what they consumed was predicated on the size of the enterprise and, above all, on the negotiating influence and ability of its management. As I have argued, the larger the enterprise, the more management were able to press their case for resources. They were more able to demand service from government administrators and from their raw material and semifinished product suppliers.

But throughout the 1980s and indeed for the present, the Second Automobile/Dongfeng group’s production is not based on the manufacture of automobiles. The focus is on producing middle and heavy-duty trucks and vans and on the manufacture of truck engines. While a small volume of export has been involved, the group’s trucks and engines have also been sold primarily into China’s domestic market. (In 1991 the group was producing 130,000 trucks per annum and by 1995 their annual production of trucks had risen to 180,000 units.

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