Corporate Governance Has a Distinctly Different Meaning in China

The idea of two competing, publicly listed companies swapping chairmen might seem strange to most people. But for China’s state-owned enterprises, where top personnel changes are just part of the large Communist Party apparatus, it is not all that unusual. Around noon on Aug. 24, 2015, China Telecom and China Unicom (Hong Kong) each announced the resignation of its top leader. Wang Xiaochu of Telecom and Chang Xiaobing of Unicom were to step down as chairman and CEO of their respective companies, simultaneously, effective that day. Later, both companies confirmed that the two men would swap jobs.

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