ABSTRACT
The authorities ofthe People's Republic of China, anxious to modernize the economic fabric oftheir country in order to respond to market globalization, are regrouping state-owned enterprises into powerful conglomerates. To succeed in this important and complex reform, the Chinese government has been inspired by the Japanese keiretsu's modes of functioning, symbiotic and consensual. I
The keiretsu are intricate groupings of firms linked by financial interests, intermixed boards of directors, and industrial and commercial operations which are often interdependent. Using these groups as a model today may seem surprising because, due to external pressures (the economic and financial crisis in Japan, the new competitive rules created by globalization, etc.) and internal problems (excess production capacity, lack of competitiveness of certain members, etc.), the structure of these conglomerates is being called into question. 2 Despite the difficulties besetting 1 The South Korean chaebols, industrial holdings controlled and managed in an authoritarian manner by powerful families, have also been used as models by the Chinese authorities. Despite the criticism of these conglomerates after the 1997 economic crisis, China continues to use them as a reference for carrying out their reform (Liew, 1999). Today, the principal chaebols are Hyundai, LG, Samsung, Ssangyong and Sunkyong. Daewoo is being dismantled. 2 A number of observers have announced the end of the keiretsu. We think that these conglomerates, for reasons outlined in this article, are not condemned to disappear. They are, however, obliged to adapt to new environmental conditions.
