Business Group Formation in China’s Steel Industry: The Case of Baowu Steel Group

Abstract

The article analyzes the case of building and development of the Chinese business group in steel industry. The author reviews the concept of business groups, the purpose of their building, as well as government initiatives aimed at supporting their development in the context of the reform of state enterprises. Further, the analysis of the structure of the China Baowu Steel Group, as well as the classification of member enterprises according to the four-level management system of business groups adopted by the state bodies of China, is provided. The third part is devoted to the development of the China Baowu Steel Group in accordance with the priorities of the state industrial policy.

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