How State Control Over Chinese Business Groups Works

In theory, regulation operates around two channels. SaaSAC owns the holding companies which allows it to make decisions that a shareholder would be able to make in a private corporation. There's also a parallel corporate structure directly run by the party. High-ranking people in the corporate structure become party members and are sent to cadre trainings at places like the Central Party School in Beijing. heads of large SOEs also have positions in the Chinese government itself.