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Industrial policy, corporate governance, and the competitiveness of China's national champions: The case of Shanghai Baosteel Group


  • Pei Sun


The paper presents an in-depth case study of the Shanghai Baosteel Group as a contribution to the overall assessment of the competitiveness and catch-up capability of the Chinese national champions after China's WTO accession. Significant competitive advantages of the firm in the domestic industry are identified, with cautionary remarks concerning the future stiff competition with the global steel giants. Through detailed examinations of the corporate governance mechanism and the industrial policy implementation in Baosteel and the whole steel sector, the paper sheds light on the institutional and policy challenges that the Chinese government has to face in building up its big businesses. It is concluded that whether Baosteel could emerge as a globally competitive steel firm depends critically upon the effectiveness of both the further reform of the state-dominated corporate governance system and the improvement of the industrial policy enforcement.

Suggested Citation

  • Pei Sun, 2005. "Industrial policy, corporate governance, and the competitiveness of China's national champions: The case of Shanghai Baosteel Group," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 3(2), pages 173-192.
  • Handle: RePEc:taf:jocebs:v:3:y:2005:i:2:p:173-192
    DOI: 10.1080/14765280500120013

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    Cited by:

    1. Rock, Michael T. & Toman, Michael & Cui, Yuanshang & Jiang, Kejun & Song, Yun & Wang, Yanjia, 2013. "Technological learning, energy efficiency, and CO2 emissions in China's energy intensive industries," Policy Research Working Paper Series 6492, The World Bank.
    2. Holz, Carsten A., 2011. "The unbalanced growth hypothesis and the role of the state: The case of China's state-owned enterprises," Journal of Development Economics, Elsevier, vol. 96(2), pages 220-238, November.
    3. Nozomu Kawabata, 2016. "The Vietnamese Iron and Steel Industry in Transition to a Market Economy -Attainments and Challenges-," TERG Discussion Papers 349, Graduate School of Economics and Management, Tohoku University.

    More about this item


    China; steel industry; industrial policy; corporate governance; competitiveness; national champions; JEL classification; L53; L61; M2; P31;

    JEL classification:

    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions


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