Institutional and Policy Guarantee, a Premise to Improving Enterprise Governance

HUANG Sujian ( 黄速建), WANG Qin ( 王钦) and HE Jun ( 贺俊)
Institute of Industrial Economics of CASS

Editorial note:A significant change in China’s economy since reform and opening up began in the late 1970s have been the development of the private economy and private enterprises, which has injected vigor and vitality into the national economy.
The governance of private enterprise has a direct bearing on a business’ sustainable development. A study of the governance of Chinese private enterprise is therefore of great practical significance. What is the nature of the governance of Chinese private enterprise? This article attempts to answer this question based on an integrated indepth analysis. The authors conclude that the evolution process of private enterprise governance in China is one of private enterprises making “adaptive selection” driven by internal demand under external “institutional constraints.”

Thirty years since China’s reform and opening up were launched, the private sector has become an integral part of China’s economy. In light of private enterprises growing in scale and strength, questions of how to improve the governance of Chinese private enterprises and afford an institutional assurance for their sustainable development have become necessary issues in theoretical research and in practice.