As China’s economy moved away from state planning and policymakers introduced market reforms in the 1980s and 1990s, many observers expected that in addition to promoting the growth of the Chinese economy, privatization would also have substantial political implications. Most importantly, it was thought that the rise of the private sector could lead to the establishment of an independent business class that would seek to defend its interests, both in the short term through greater policy lobbying and over the longer term by pushing for institutionalized political change, including democratization. The actual economic and political trajectory of China’s private sector has been more complicated and has been a central area of contestation for economic and political power between firms and the Chinese party-state. Although Chinese companies have pushed to have greater autonomy, they have also faced immense pressure to adapt and cede authority in order to survive and grow.
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