ABSTRACT
This chapter begins by detailing the efforts of the Chinese government to transform large state-owned enterprises from sole state proprietorship to shareholding corporations that possess diverse ownership, yet in which the state remains the dominant shareholder and manager. Before 1980, China's entire oil and gas exploration and production was under the control of the Ministry of the Petroleum Industry. When compared with international oil companies, it is clear that the sales of the Chinese oil group are below that of the industry leaders. The parent company, Shanghai Automotive Industry Corporation, is dominated by the state and supervised by the Chinese bureaucracy, which also guarantees its bank loans. China Telecom Communications Corporation controls China Telecom through China Telecom Hong Kong, holding 75 per cent of the company's total equity. Under the Chinese Bankruptcy Law, the decision to file a bankruptcy is vested in the hands of the state, less with courts and creditors.
