A Powerhouse Reform: Conversion from the Ministry of Electric Power to the State Power Corporation of China

Abstract

This paper examines the relationship between economic reform and government restructuring in China by examining the reform in the power industry in general and the conversion of the Ministry of Electric Power to the State Power Corporation of China in particular. It shows two distinct features of this relationship. One is that political and economic reforms must proceed in tandem. That is, economic reform requires ideological shifts by the Party and changes in government policies, which in turn propel changes both in government structures and in the economic structure of industries. The other is the combination of top-led and bottom-driven reform. Changes in government policies and ideological guidelines encourage and promote economic reforms in power plants in provinces and regions. Reforms adopted and confirmed from the bottom-up demand and drive political restructuring in the central government.