How successfully China has applied the OECD principles of corporate governance: a critical assessment

This paper attempts to critically analyze how successful China has been in applying the OECD principles of corporate governance. In doing so, assessment has been made in light of the six core issues of the OECD principles. A satisfactory level of progress has been noted in China’s legal and regulatory framework since the 1990s. New laws, regulations, and rules have been enacted, existing ones have been amended, and all the required institutions have been built accordingly in order to ensure good corporate governance practices in the country. However, there are still bottlenecks in terms of the enforcement of these laws, regulations, and rules mainly due to the various structural limitations in the Chinese administration and judiciary. The paper argues that China should now move forward with an accelerated enforcement agenda in the area of corporate governance in order to make China Inc. more competitive and sustainable.