Politics over markets: Integrating state‐owned enterprises into Chinese socialist market

Interest is growing in the reform of China's state‐owned enterprises (SOEs), both within and outside China. Many studies argue that the highest‐ranking mainland enterprises on lists of top global enterprises and national 100‐strongest companies are indicative of their successful integration into world and local markets. However, despite their high ranking, the strength of their performance is in doubt. In the socialist market situation of China, key business sectors continue to be dominated by the public sector, and SOEs control the commanding heights of the national economy. The urge for more market‐oriented changes aside, China's SOEs are still required to pursue and fulfil both commercial and non‐commercial interests and obligations. This article finds that SOE reform is more a reflection of local economic nationalism. Economic nationalism is the driving force behind the SOE reforms, with public administration and state economic management at the forefront and free market development as only secondary interest.