International Law

Restructuring of China?s Book Publishing Industry: No News Here for Foreign Investors

By Stan

Perhaps a poor choice of headlines from the Financial Times on this book publishing story. “China to Loosen Control of Book Publishing,” at least to me, suggests that the State might start allowing in foreign investors.

Bad assumption on my part. Looks like a restructuring for business reasons, the usual pattern whereby a domestic monolith is transformed into a leaner, financially stable entity that can go out and compete internationally as well as dominate at home.

At least I think that’s the idea.

China?s largest publishing house intends to transform itself from a propaganda vehicle into a global player as it spearheads Beijing?s plans to restructure the industry while keeping it under state control.

Nie Zhenning, president of the China Publishing Group, told the Financial Times that he hoped Beijing would regroup the publishing industry into two state-owned conglomerates. After an initial public offering, Mr Nie?s company would then seek to acquire players at the provincial level.

Keeping all this under State control means no meaningful new opportunities for foreign companies. Maybe in the future, if the restructured entities want to do a great deal more business overseas, they will have to make some concessions on the China market. Wouldn’t hold my breath on that in the short term, though.

© Stan for China Hearsay, 2010. | Permalink | No comment | Add to del.icio.us
Post tags: book publishing, China SOEs, State-owned enterprises

Full post as published by China Hearsay on March 09, 2010 (boomark / email).