The Chinese state has never granted businesses full autonomy, even amid efforts to establish market-supporting institutions. Instead, the state and its officials view business as primarily political actors, demanding political services from firms to advance political objectives. Politicizing Business demonstrates that the politicization of firms is rooted in authoritarianism, often harming business interests and undermining China's efforts to attract and retain investment. Explaining the seemingly arbitrary state takeover of sectors and firms, this book uncovers previously overlooked forms of politicization and demonstrates how politicizing business often creates conflicts between the state and firms, particularly private firms, leading to a state-dominated market in many sectors. Combining academic rigor with exceptionally rich data and analysis, including hundreds of in-depth interviews with government officials and business leaders, original datasets and case studies, Politicizing Business offers fresh insights into China's political economy model and explores what the Party-state demands from companies, how compliance is enforced, when and where firms are politicized, and its impact on China's development.

‘The Chinese Communist Party has always been ambivalent about how to treat the private sector of the economy. Professor Leng’s superb study provides us with a nuanced view of this complicated relationship. Using detailed case studies (the urban bus sector and waste management) she demonstrates convincingly how the authoritarian political economy leads to the politicization of business. Businesses are seen as providing career support to individual officials through visibility projects and providing systemic support aiding social control. Far from outcomes being solely attributable to Xi Jinping’s or any central leader’s approach, she demonstrates how government–business relations are driven by the incentive system under which local officials operate. The book is a must-read, not only for those interested in government–business relations but also for those who seek a deeper, more nuanced understanding of China’s political economy.’

Tony Saich - Daewoo Professor of International Affairs, Harvard Kennedy School

‘For all the undeniable successes of China’s economic model, Ning Leng’s excellent new book reminds us of the fragility of business-state relations by exploring variation in state encroachment in two vital sectors in convincing detail. Deeply researched and clearly argued, Politicizing Business is a major contribution.’

Tim Frye - Marshall D. Shulman Professor of Post-Soviet Politics, Columbia University

‘Professor Ning Leng has written a timely book. The central phenomenon she tackled - the phenomenon of visibility projects - is a salient feature of the Chinese economy and yet there is almost no detailed scholarly treatment of the topic. Her book delves into and unpacks this issue, and it will enhance our understanding of China in important ways.’

Yasheng Huang - Epoch Foundation Professor of Global Economics and Management, MIT Sloan School of Management

‘This is a powerful account of the politicization of business in contemporary China and its institutional roots. In China’s political economy, where no firm is protected from encroachments of the state, Leng illuminates how and why private firms lose to state firms in the competition to meet demands for political goods and services. Leng makes her arguments with vivid case studies and material from hundreds of interviews conducted in years of fieldwork in fifteen cities. This is an important contribution to our understanding of the business–government relationship under authoritarianism.’

Melanie Manion - Vor Broker Family Distinguished Professor of Political Science, Duke University