The Economic Effects of Party Power Centralization

As state capitalism gains renewed attention amid global crises and geopolitical tensions, what happens when political control over state-owned enterprises increases? This talk examines China’s dual-appointment policy under Xi Jinping, which places the same individual in charge of both Communist Party leadership and corporate governance within state-owned enterprises. Drawing on interviews with senior executives and extensive firm-level data, the research explores how greater political control affects access to state financing, corporate growth, policy implementation and market decision-making. The findings reveal important tradeoffs between political priorities and economic efficiency, particularly in industries considered strategically important to the Chinese state.

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