The state and domestic capitalists in China’s economic transition: from great compromise to strained alliance

China's financialized soybeans: The fault lines of neomercantilism narratives in international food regime analyses

“…These segments emerged from different personal networking paths and have competed over more or less liberalized financial and monetary policies. From a Marxist perspective, Nogueira and Qi (2018) argue that such disputes have followed economic agendas to amplify the influence of different capitalist groups as they integrate into the global economy. In Nogueira's and Qi's words, ‘the fractioning of the capitalist class, rapidly accelerated by financial expansion and the intensification of its attempts at relations with foreign capital, generated new pressures on the state’ (Nogueira & Qi, 2018, p. 20).…”

The Rise of State-Transnational Capitalism in the Xi Jinping Era

“…Some authors in the field of Chinese Studies follow a similar approach while examining the recent transformations of the state in China. For instance, Andreas (2008), Au (2012), Lopes Ribeiro (2017), Nogueira/Qi (2018), McNally (2019, and Wang (2015) agree that the gradual character of the reforms inaugurated by Deng Xiaoping did not prevent the emergence of new capitalist classes. They generally relate this phenomenon to different processes of capital accumulation that have been facilitated -and some-times, guided -by the state.…”

“…The national capitalists from the private sector come mostly from the state bureaucracy. During the wave of privatization on the 1990s, state officials often took advantage of their administrative positions to access privileged information and to attain favourable negotiating conditions for acquiring state assets (Andreas 2008;Au 2012;Nogueira/Qi 2018). This was the case of Hopefull, currently one of China's biggest soybean processors.…”

“…On the other hand, the capitalists associated with local and central SOEs have acted mainly as private investors integrated into the state ownership structure. Since the beginning of the corporate reforms, SOEs have turned into fast vehicles for private investors to gain great fortunes (Nogueira/ Qi 2018;Wang 2015). This is the case of Jiusan, a large soybean processor and trader that belongs to Beidahuang, an SOE from Heilongjiang Province.…”

“…Since productive investments have exceeded the actual market demand, the loans taken to finance these projects have generated continuously lower returns, and further debt had to be added to repay interest. The high levels of borrowings have steadily compelled SOEs to develop financial instruments to raise funds, expand businesses, and manage assets (Law 2014;Wang 2015;Nogueira/Qi 2018). However, COFCO had already long before developed those instruments through equity diversification and association with foreign financial holdings.…”