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Transparency and Opaqueness in the Chinese ICT Sector: A Critique of Chinese and International Corporate Governance Norms

  • Colin HAWES (a1) and Grace LI (a2)

This article critiques the current Chinese corporate governance framework and the OECD Principles of Corporate Governance (OECD Principles) on which the Chinese framework is largely based through detailed analysis of public disclosures by four prominent Chinese internet and communications technology (ICT) firms. These include State-controlled firms (China Telecom & China Mobile), mixed ownership (ZTE), and privately-controlled firms (Huawei Technologies). The article argues that neither Chinese nor international corporate governance norms deal adequately with the complex group structures that are so common among large Chinese firms. It also reveals deficiencies in the rules on independent directors, supervisory committees, and Chinese Communist Party committees as they are applied by Chinese ICT firms. The article concludes with reform proposals that would provide more useful information and better protection to outside investors and public stakeholders in the unique Chinese corporate environment.

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Dr Colin Hawes, Associate Professor, Faculty of Law, University of Technology Sydney, Australia.


Dr Grace Li, Associate Professor, Faculty of Law, University of Technology Sydney, Australia.

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This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

Benjamin L Liebman and Curtis J Milhaupt (eds), Regulating the Visible Hand? The Institutional Implications of Chinese State Capitalism (Oxford University Press 2015)

Jean Jinghan Chen , A Primer on Corporate Governance: China (Business Expert Press 2015)

Ding Chen , Corporate Governance, Enforcement and Financial Development: The Chinese Experience (Edward Elgar 2013)

Lin Zhang , Venture Capital and the Corporate Governance of Chinese Listed Companies (Springer 2012)

Jing Leng , Corporate Governance and Financial Reform in China’s Transition Economy (Hong Kong University Press 2009)

Chun Liao , The Governance Structures of Chinese Firms: Innovation, Competitiveness, and Growth in a Dual Economy (Springer-Verlag 2009)

Masao Nakamura (ed), Changing Corporate Governance Practices in China and Japan: Adaptations of Anglo-American Practices (Palgrave Macmillan 2008)

Guanghua Yu , Comparative Corporate Governance in China: Political Economy and Legal Infrastructure (Routledge 2007)

Zeng Jin , State-Led Privatization in China (Routledge 2013)

Jie Chen and Bruce Dickson , Allies of the State: China’s Private Entrepreneurs and Democratic Change (Harvard University Press 2010)

Bruce Dickson , Wealth into Power: The Communist Party’s Embrace of China’s Private Sector (Cambridge University Press 2008)

Grace Li , ‘Moving Towards Unsustainability, A Study of the Chinese Telecommunications Regulation’ (2008) 1 International Journal of Private Law 47

Yukyung Yeo , ‘Between Owner and Regulator: Governing the Business of China’s Telecommunications Service Industry’ (2009) 200 The China Quarterly 1013, 1021

Jin Zeng , State-Led Privatization in China (Routledge 2013) 27

Grace Li , ‘Can the PRC’s New Anti-Monopoly Law Stop Monopolistic Activities? Let the PRC’s Telecommunications Industry Tell You the Answer’ (2009) 33(7) Telecommunications Policy 360, 361

Hideki Kanda , Kon-Sik Kim , Curtis J Milhaupt (eds), Transforming Corporate Governance in East Asia (Routledge 2008)

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Asian Journal of Comparative Law
  • ISSN: 2194-6078
  • EISSN: 1932-0205
  • URL: /core/journals/asian-journal-of-comparative-law
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