China's Entrepreneurial Army

by
Format: Hardcover
Pub. Date: 2002-02-07
Publisher(s): Oxford University Press
List Price: $245.33

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Summary

This book examines the rise and fall of the Chinese military business complex between the early 1980s and late 1990s. Cheung analyzes the commercial success of this economic powerhouse, its impact on civil-military relations, and the broader benefits and drawbacks of the military's participation on money-making activities.

Author Biography


Tai Ming Cheung works as a consultant in the Tokyo office of PricewaterhouseCoopers Investigations Asia Ltd., helping companies manage their risk in doing business in Asia. He has previously worked as a journalist at the Far Eastern Economic Review and as an analyst for a stock brokerage in Hong Kong. He has written extensively for newspapers, media organizations, and scholarly journals.

Table of Contents

List of Figures
x
List of Tables
xi
Abbreviations and Conversions xiii
Introduction 1(1)
A Review of the Literature on Military Economics, Army Production, and Commercial Operations
2(4)
The Organization of the Book
6(6)
The Historical Roots of the Military Business Complex From Imperial Times to the Communist Era
12(14)
The Communist Era (1928-1980)
17(6)
The Changing Definitions and Circumstances of Army Production and Military Business From Mao to Deng
23(3)
The Birth, Rise, and Restructuring of the Military Business Complex, 1985-1998
26(33)
Stage 1: The Decision to Go into Business
26(12)
Stage 2: The Era of Freewheeling Growth, 1986-1993
38(12)
Stage 3: The Consolidation of the Military Business Complex, 1993-1998
50(8)
Conclusions
58(1)
The Structure of the Military Business Complex and its Key Corporations
59(25)
The Size and Composition of the Military Business Complex
59(4)
Administrative Oversight: The Role of the General Logistics Department and the Production and Management Department
63(2)
Corporate Oversight: The Role of Military Conglomerates
65(2)
National-Level Military Conglomerates
67(3)
The PLA's Leading Conglomerates: China Poly, China Xinxing, and Sanjiu
70(9)
Regional and Provincial Level Military Conglomerates
79(3)
Lower-Level PLA Corporations
82(1)
Conclusions
83(1)
The Military Business Complex's Corporate and Personal Connections
84(13)
Leading Personalities
84(1)
Logistics Administrators
85(3)
Military Business Administrators
88(1)
Princelings
88(3)
Model Entrepreneurs and Factory Managers
91(3)
Military-Civilian Corporate Connections
94(3)
From Airlines to Telecommunications: The Wide Ranging Nature of the PLA's Business Activities
97(30)
From Agriculture to Services: The Changing Focus of Military Business Activities
97(3)
Military Business Participation in Major Industries
100(27)
The Military Business Complex in the Regions and Overseas
127(22)
Military Business in Guangdong Province
131(2)
Military Business in Xinjiang Autonomous Region and the Role of the Xinjiang Production and Construction Corps
133(3)
The Military Business Complex and Foreign Joint Ventures
136(2)
The PLA's Role In Allowing Foreign Joint Ventures in the Chinese Defence Industry
138(2)
Military Business Operations in Hong Kong and Abroad
140(9)
The Rewards of Military Commercialism
149(24)
The Earnings of the Military Business Complex
149(5)
Sharing Out the Profits
154(3)
Funding for Weapons Modernization
157(1)
Employment
158(2)
The Introduction of Commercial Business and Management Practices
160(4)
Reforming the Logistics Supply System
164(2)
Technological Benefits
166(2)
The Social Benefits: Maintaining Morale
168(2)
The Political Benefits: Military Support for the Economic Reforms
170(3)
The Drawbacks
173(27)
The Major Sins
174(1)
Corruption
175(7)
Smuggling
182(5)
Profiteering and Speculation
187(2)
Trading of Military Licences and Bogus Military Personnel and Enterprises
189(1)
Misuse of Military Equipment and Resources
190(1)
Social Vices
191(1)
The Impact on Military Readiness and Cohesiveness
192(2)
Economic Disparities and the Rise of Economic Warlordism
194(6)
Sibling Rivalries: The Relationship Between the Military Business Complex and the Defence-Industrial Complex
200(32)
The Relationship Between the Military Business Complex, the Defence-Industrial Complex and the PLA
201(1)
The Development of the Defence-Industrial Complex: The Legacies of Soviet and Maoist State Planning
202(3)
The Size and Output of the Defence-Industrial Complex
205(3)
The Financial Costs of the Defence-Industrial Complex
208(1)
Conversion and Commercialism
209(2)
The Structural Problems of the Defence-Industrial Complex
211(5)
China's Socialist Market Economy and the Reform of the Defence-Industrial Complex in the Late 1990s
216(14)
Future Trends in the Development of the DIC
230(2)
The PLA's Divestiture From Business, 1998-1999
232(27)
Taking Charge of the Divestiture
233(2)
The Framework and Guidelines of the Divestiture
235(2)
The Fate of the Conglomerates
237(7)
The Extent and Scope of Compensation
244(3)
The Actual Implementation of the Divestiture
247(3)
The Roles of Jiang Zemin, Zhu Rongji, and Hu Jintao in the Divestiture and the Impact on Civil-Military Relations
250(5)
The Structure of the Military Business Complex Since the Divestiture
255(2)
Conclusions
257(2)
The Impact and Legacy of the Chinese Military Business Complex and the Participation of Other Armies in Commerce
259(17)
The Impact of the Military Business Complex on China's Overall Economic Development
259(1)
The Impact on Military Professionalism and Combat Readiness
260(1)
Will the Military Business Complex Make a Comeback?
261(1)
The PLA's Business Interests and the Threat to the USA
262(2)
Lessons for Foreign Armies
264(7)
The Imperatives and Characteristics of Military Commercialism
271(5)
Bibliography 276(15)
Index 291

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