The Chinese government has implemented electricity reform during the reform era, but the process has been accompanied by widespread power shortages and political struggles among state agencies. This paper addresses this contradiction by explaining two interrelated outcomes: the transformation of the state regulatory structure and the development of corporatized state-owned enterprises.

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By examining China’s state-monopolized industries, we explore the evolution of managerial behavior. With the party-state’s continued emphasis on meritocracy in elite management, managers of China’s state-owned enterprises play a hybrid role as both party cadres and business entrepreneurs. This also reflects the adaptability of the Chinese Communist Party in pursuing pro-market reform.

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