Original Study by Jie Tan & Zhirong Jerry Zhao
China is the world leader in PPP usage. This paper notes that, as of June 2017, China had launched 13,554 PPP projects, with a total target investment of 16.3 trillion RMB (approximately $2.52 trillion). Unlike western countries however, the so-called private partners in the majority of Chinese PPPs are, in fact, state-owned enterprise (SOEs).
The prevalence of SOEs in more than half of the PPP projects based in China raises several questions. For example, does the Chinese government employ SOEs for PPP projects in order to ‘buy’ political support from these powerful players? Also, how does partnering with SOEs impact the cost efficiency of PPPs? This paper addresses a separate but nonetheless important research question: do projects led by SOEs incur higher returns compared to those led by private firms?
Related Articles
November 2024
Public Reaction to Public-Private Partnerships (PPPs): Citizen Assessments of Four Different Types of PPPs and Policy Support
October 2024
Governmental Support Strategies and Their Effects on Private Capital Engagement in Public-Private Partnerships
September 2024
What Do Ministers and Their Advisors Say to the Critics of Public-Private Partnerships? Results From a Mixed-Methods Study
August 2024
Stakeholder Dynamics: Rethinking Roles and Responsibilities in User-Pay Transport PPP Projects
June 2024
The Governance of Affordable Housing Through Public-Private Partnerships: Critical Entanglements
May 2024
Determinants of Public-Private Partnership Governance Structures: Evidence from India