Course Code


Course Name

Business and Government in China


The course is cancelled for this semester


The course is cancelled for this semester


LI Chen

Teaching Assistant

Yang Yiwei

Course Description

(Cancelled course, for reference only)


This course examines the broad economic and political context in which business operates in China. Both business firms and government organizations have to respond to changing external environment. They can also proactively shape their environment by their strategies, policies and relations. In this course, we will learn about the institutional foundations of China’s political economic system and the key economic, political, and social factors that affect China’s business environment. It examines strategies, management and leadership both from the macro and micro perspectives. The issues we cover have profound implications and importance for business and society in China as well as multinational companies.

Course Outline

(Cancelled course, for reference only)

1. Introduction

This session introduces the general background and course arrangement.

2. Business, Government and China’s Political Economy in Historical Perspective

This session discusses the evolving roles of business and government in China’s political economy from
the historical perspective. It will introduce the key concepts of analysing state-business relations in
economic development.

3. Central Planning and Command Economy

This session examines the rise and fall of central planning and command economy in China between
1950s and 1980s, with a particular emphasis on the roles of government bureaucracy and state-owned
enterprises in China’s heavy-industry-oriented industrialization.

4. China’s Economic Reform and the Development of Business Sector

This session reviews the overall process of China’s market-oriented economic reforms and business sector
development since the 1980s.

5. From State-owned Enterprises to National Champions

This session examines the transformation of China’s traditional state-owned enterprises into modern
corporate giants as China’s “national champions” in international economic competition.

6. China’s Hybrid Corporate Governance Regime

This session examines the evolution of China’s hybrid corporate governance regime, focusing on how the
different mechanisms of government regulation and control affect corporate governance in China’s
business sector.

7. Industrial Policy, Catch-up and Green Development

This session examines the role of industrial policy in China’s economic catch-up and green development,
focusing on how different patterns of state-business relations shape China’s industrial development
trajectories in the context of global economic and environmental change.

8. Commercial Banking and Policy Banking in China

This session examines the evolution of commercial banking and policy banking in China, focusing on how
government-led financial reforms have shaped the structure and performance of China’s big banks.

9. Shadow Banking in China

This session examines the evolution of shadow banking in China, focusing on how shadow banking
activities interact with government regulation and financial policies.

10. China’s Stock Market

This session examines the development of China’s stock markets by analysing its structural features,
limitations and recent reforms.

11. China’s Bond Market

This session examines the development of China’s bond markets in relation to China’s financial sector
opening up and RMB internationalization.

12. Digital Disruption and Regulation

This session examines China’s financial technology revolution, highlighting the tensions between
innovation and stability in the Fintech sector development.

13. China in the Global Value Chains

This session examines the positions of China’s business firms and government policies in global value
chains. It discusses the challenges posed by the changing global geopolitical context on the resilience and
security of China’s industrial value chains.

Assessment & Assignments


Honesty in Academic Work

Attention is drawn to University policy and regulations on honesty in academic work, and to the disciplinary guidelines and procedures applicable to breaches of such policy and regulations. Details may be found at

With each assignment, students will be required to submit a signed declaration that they are aware of these policies, regulations, guidelines and procedures.

  • In the case of group projects, all members of the group should be asked to sign the declaration, each of whom is responsible and liable to disciplinary actions, irrespective of whether he/she has signed the declaration and whether he/she has contributed, directly or indirectly, to the problematic contents.
  • For assignments in the form of a computer-generated document that is principally text-based and submitted via VeriGuide, the statement, in the form of a receipt, will be issued by the system upon students’ uploading of the soft copy of the assignment.

Assignments without the properly signed declaration will not be graded by teachers.

Only the final version of the assignment should be submitted via VeriGuide.

The submission of a piece of work, or a part of a piece of work, for more than one purpose (e.g. to satisfy the requirements in two different courses) without declaration to this effect shall be regarded as having committed undeclared multiple submissions. It is common and acceptable to reuse a turn of phrase or a sentence or two from one’s own work; but wholesale reuse is problematic. In any case, agreement from the course teacher(s) concerned should be obtained prior to the submission of the piece of work.