China’s Giant State-Owned Enterprises as Policy Advocates: The Case of the State Grid Corporation of China

Drawing insights from Aaron Wildavsky’s studies of the craft of policy making and from the literature on pluralization in Chinese decision making, this article examines the role played by the biggest state-owned enterprise, the State Grid Corporation of China (SGCC), in shaping the country’s electri...

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Bibliographic Details
Published in:The China journal (Canberra, A.C.T.) A.C.T.), 2018-01, Vol.79 (79), p.21-39
Main Author: Yi-chong, Xu
Format: Article
Language:English
Subjects:
21st century
Chinese languages
Competition
Decision making
Directives
Electricity
Electricity distribution
Energy shortages
Liking
Policy making
Public enterprise
Public finance
Public policy
Shortages
Wildavsky, Aaron
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Summary:Drawing insights from Aaron Wildavsky’s studies of the craft of policy making and from the literature on pluralization in Chinese decision making, this article examines the role played by the biggest state-owned enterprise, the State Grid Corporation of China (SGCC), in shaping the country’s electricity policy in the early twenty-first century. Specifically, it discusses how and why SGCC was able to sell its ultra-high-voltage projects as a solution to shortages of electricity. The article argues that (a) central state-owned enterprises (SOEs) are not mere passive receivers of policy directives from the party-state; (b) those with long-term strategic vision, human and financial resources, and institutional capacity can shape government policies to their liking as policy advocates; and yet (c) no one, including central SOEs, monopolizes this process in any given policy area; and thus policy outcomes reflect competition among players and their constant interaction with government policy makers.
ISSN:1324-9347
1835-8535
DOI:10.1086/693049