Holding ‘China Inc.’ together: The restructuring of the centrally controlled financial system
The restructuring of the centrally controlled fi nancial system has been crucial in the evolution of ‘China Inc.’ since the early 1990s. On the one hand, it is a goal of China’s reform to build up a batch of centrally controlled fi nancial institutions as China’s ‘national champions’ big business in the fi eld of fi nance. On the other hand, these fi nancial institutions have also served as vital instruments of industrial policy for the central bureaucracy to support the development of yangqi . In this sense, they are the indispensable fi nancial arm of the ‘national team’ as a whole. With this dual function, the centre’s control of fi nance is no less important than the nomenklatura system in maintaining and governing the ‘China Inc.’, although the former’s political base is still built upon the latter.