Private Law of China’s State-Directed Economy

  • Luyao Che


As Chap. 3 has explained how the public law, which aims to directly empower the state, is adopted to advance the practice of state-directing, this chapter moves on to explore the ways by which the state adopts private legal instruments to practice state-directing. Firstly, private law serves as an increasingly indispensable instrument for the maintenance of a state-directed economic model so as to enhance the competitiveness of the state as a competitor. The chapter demonstrates the point that Chinese SOEs are gradually corporatised and eventually converted into market entities that are subject to private law, which applies equally to all types of enterprises, including private enterprises. Through corporatisation, the state has developed a new way to intervene in the market, namely by exercising its shareholder rights in the operation of various SOEs. The chapter then argues that private law, including contract law, commercial arbitration, and labour law, also serves an increasingly important mechanism for the state to intervene in the market as a regulator.



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Copyright information

© Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  • Luyao Che
    • 1
  1. 1.China University of Political Science and LawBeijingChina

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