Public-Private Partnerships In China Research Articles

The implementation of Public-Private Partnership in China: A sustainable pathway?

The organizational forms of infrastructure in China are divided into two categories, the traditional Public Procurement Model (PUB) model and Public-Private Partnership(PPP) model. The main difference is the separation or binding of the construction and operation phases. A systematic understanding is needed of how Chinese local governments choose between these two models. In this paper, we take public capital congestion and local government objectives as the entry point to study the effects of both on PPP choice. Firstly, by constructing an endogenous economic growth model under the PPP model, and comparing it with the model under the PUB model, this paper initially explains how the rise in public capital congestion affects the choice of the PPP by growth-oriented local governments. Then the data from prefecture-level cities from 2009-2018 are utilized to conduct empirical tests. We find that urban economic growth pressures have a positive effect on the choice of PPP when the congestion of public capital increases. Furthermore, the implementation of PPP is indeed conducive to economic performance, and its core mechanism is to provide more infrastructure (like roads) rather than tax competition. The PPP model is more sustainable. We are the first to employ both modeling approach and the empirical research to address the implementation of Public-Private Partnership in China. And we have systematically analyzed the conditions and results of PPP selection by local governments. It formulates the Chinese PPP theory.

It is top-down governance: examining environmental public-private partnerships in China

ABSTRACT Public-private partnerships have been touted as an important governance tool. To what extent efficiency gains are internalized into the governance scheme remains open. This study proposes a nested model suggesting that the development of PPPs is enabled and constrained by project features, local contexts and (top-down) governance scheme. Based on 325 environmental PPP projects in China, the multilevel models suggest when government payment or subsidy were involved, the development of PPPs was not driven by efficiency gains but empowered by top-down governance. While efficiency gains mattered, user fees also prevailed more when certain governing arrangements were place. PPPs in China serve and are also constrained by top-down governance, raising potential concerns on efficiency and public accountability.

Public Private Partnership with Chinese Characteristics: A Critical Review and Theoretical Framework

The localization and generalization of the public–private partnership (PPP) is a controversial issue discussed in the research agenda of PPP. China has played a central role in global PPP development in recent years. This study reviews the policy and development of PPP in China through the lens of punctuated-equilibrium theory. A conceptual framework of China-type PPP, including projects, organizations, functions, policies, and governance, is then developed for analysis and interpretation through global comparisons. This study indicates the possibility of a “China model” in PPP due to China’s distinct evolutionary process, characteristics, and representative PPP, but requires further extraction, summarization, and enrichment with sustainable development. In addition, the “China model” will have a potential peer-level value for other emerging markets.

Government Linked Companies (GLCs) as Investors in Water Sector in China: Implications for Public–Private Partnership (PPP)

This paper investigates the role of government-linked companies (GLCs) in public–private partnerships (PPPs) for urban water supply in China. GLCs are corporations in which the government has significant ownership, control and influence while being registered under the same corporate law as private companies. Separate from local governments that own water utilities, they form contractual relationships with local governments (or water utilities owned by local governments) under PPP arrangements, rendering them more accountable and profit-driven. We analyze an emerging PPP model in China’s water sector, where GLCs serve as major investors, and assess their effectiveness and limitations. Our findings indicate that the involvement of GLCs improves water utilities’ performance, and the quality of their water supply services, while offering potential advantages such as stronger financial capability, higher political risk resistance capacity, and mitigation of public tension. However, concerns persist about risk-sharing, political interference, and local government control. This research contributes to understanding the evolving landscape of PPPs in China’s water sector and the potential implications of GLC involvement for urban water supply systems globally.

Conceptualizing Public-Private Partnerships for Technology Innovation and Digital Transformation in China's Post-Pandemic Recovery

This conceptual paper examines the role of public-private partnerships (PPPs) in technology innovation and digital transformation during China's post-pandemic recovery. It highlights the opportunities that arise for PPPs in driving technological advancements and discusses the potential challenges and risks associated with their implementation. Strategies and best practices for mitigating these challenges and maximizing the benefits of PPPs are also explored. The paper presents case studies and examples of successful PPPs in technology and digital transformation, showcasing their outcomes and lessons learned. The findings of this analysis have implications for policymakers, government agencies, and private sector entities involved in post-pandemic recovery efforts, providing recommendations for future research and practical implementation of PPPs in China's technology and digital sectors.

The Legislative Defects of Public-Private Partnership in China and Lessons Drawn

Over the recent decades of economic growth, the Public-Private Partnership (PPP) has been an emerging business model for the Chinese government to establish an efficient relationship with the private sector for public policy. However, there exist obstacles to truly implementing a PPP in place. Apart from inexperienced PPP implementation, the lack of appropriate legal guidance is another major barrier to carrying out a PPP project. A shortage in a well-structured legal system, encompassing relevant legislative deficiency, leaves the scholars the duty to navigate the way for enhancing legislative structure for PPP. Even loads of research have been done on defining the role of the government and the private capital, in hopes that the risk-bearing process involved in a PPP project would be properly designed. But little discussion thereof has been carried out, combining the analysis with the legal nature of public-private partnership itself. Therefore, this paper presents a theoretical framework for examining the legal nature of PPP and analyses the legislative defects regarding PPP with a case. In this paper, the fragmented nature of PPP legislation in China is figured out, pointing to the absence of laws with higher hierarchies regulating PPP, which reveals the vague legal nature of PPP contracts and little legal constraints on the government. What is also surfaced from the fragmented and chaotic PPP legislative state is the ill categorized legal nature of the government, with overlapping roles from different governmental departments, exacerbating the unevenly distributed risks imposed on different parties involved in PPP. This paper then ends with conclusions extracted from experience drawn from both inside and outside China, particularly making an analogy with France, and stresses the need to build a more detailed and logically clarified legislative system for PPP.

The Distortion of Public–Private Partnerships in China: An Institutional Perspective of Central–Local Government Relations

How to explain the distortion of public–private partnerships (PPPs) is underexplored. Drawing on principal–agent theory, this article proposes an institutional incentive-driven framework. Based on a case study of PPPs in China, this article finds that central–local government relationships play a crucial role in shaping PPP performance. Goal incongruence and information asymmetry lead to two types of distortion. First, PPPs become a political task for local governments to respond to higher-level governments’ needs. Second, PPPs serve as financing tools to create political achievements. These opportunistic behaviors violate the goals of the central government’s PPP policy and increase government debt risks.

A Conceptual Research of Public Private Partnership (PPP) Modeling on the Pandemic Recovery in China

This conceptual paper explores the relevance and potential of Public Private Partnerships (PPPs) in the context of pandemic recovery in China. It provides a comprehensive overview of PPPs, including their definition, key concepts, types, benefits, and challenges. The paper examines the global experience with PPPs in crisis recovery and highlights their applicability in addressing the socio-economic impacts of the pandemic. Furthermore, it presents a conceptual framework for implementing PPPs in China's pandemic recovery efforts, considering the socio-economic context, stakeholder analysis, legal and regulatory considerations, risk allocation and mitigation strategies, and financial models and funding mechanisms. The paper also explores sector-specific applications of PPPs in transportation and infrastructure, healthcare and medical services, education and skills development, tourism and hospitality, and renewable energy and sustainable development. Additionally, the paper discusses implementation challenges and offers mitigation strategies related to institutional capacity and governance, project selection and procurement, transparency and accountability, and public perception and communication. The findings of this conceptual paper provide insights into the potential of PPPs in pandemic recovery, their implications for policy and practice, and future research directions.

Environment-related underlying dynamics of project adaptability: a case study of sponge-city PPPs in China

ABSTRACT To enhance resilience for adapting to recent severe issues such as flooding and water shortage, Sponge City (SPC) is being delivered by using Public–Private Partnerships (PPPs) across China. Considering a sustainable implementation, an understanding of and effective management for the environment-related underlying dynamics of the adaptability of SPC PPPs are prerequisite. Therefore, we examined a conceptual model integrated with four external environment dimensions, which is useful for identifying externally environmental effects on the project’s adaptability. By utilizing the structural equation modeling techniques, the hypothesized relationships illustrated in the conceptual model were tested and verified. Empirical evidence indicates that the Political Environment has the highest impact followed by the Social, Economic and Natural Environments. Implications generated from the SEM are then discussed for future improvements. This study provides governments with an insight into assessing external environment effects that are significant for (1) improving the adaptability of their projects and then (2) enabling sustainability for infrastructures.

Critical Risks Inherent to the Transfer Phase of Public–Private Partnership Water Projects in China

Public–private partnership (PPP) infrastructure projects progress through separate phases, with each phase subject to unique risks, thereby requiring a phase-based strategy for managing risks. To date, most research on PPP risk has emphasized phases, with an obvious neglect of the final, transfer phase (TP) of PPP projects, in which the project ownership reverts to government. This study identified and evaluated critical risk categories of the TP, using China’s PPP water sector as the context of analysis. A two-stage approach was adopted, including both qualitative and quantitative research methods. Seven critical transfer risk categories (CTRCs) were identified, namely overhaul risks, contract risks, posttransfer operation risks, residual value risks, political risks, information risks, and succeeding operator risks, of which three are unique to the TP. Expert recommendations were presented for the facilitation of a smooth transfer of water PPPs in China. The findings of this study contribute to the body of knowledge in PPP risk management, and the specialized research approach employed may be utilized in similar exploratory studies.

Decoupling of Medical Public-Private Partnership Efficiency and Pollution to Improve Public Health: A Three-Stage DEA Analysis.

This study investigates the spatiotemporal evolution of the efficiency of medical public–private partnerships (PPPs) and the decoupling of environmental pollution to promote public health, balanced development, and environmentalism. Based on the 2011–2020 data of medical PPPs in China, the results of a three-stage data envelopment analysis (DEA) and decoupling model show that, firstly, the spatiotemporal evolution of PPP efficiency of China in healthcare has forward periodic twists and turns, and alternating peaks and valleys, which fall into two stages: extensive development, and transformation and upgrading. Secondly, this development is either a type of stable, steady or a surge increase. Thirdly, PPP efficiency and environmental pollution show a weak decoupling state. That is, Northeast China (NEC) and Southwest China (SWC) are in a state of increasing connection, whereas Northwest China (NWC) is in an expanding negative decoupling state. The remaining regions are in a weak decoupling state. This study recommends the mode of ecology-oriented development (EOD) to promote a high-quality, integrated development of PPPs in medicine and healthcare that are especially conducive to a “green economy.” There should be a more coordinated development across regions in China as well.

A bibliometric and meta-analysis of studies on public–private partnership in China

China is one of the countries with the highest public-private partnership (PPP) experience. Although numerous studies on PPP in China have been published in different international journals in the past decades, few relevant reviews have been found. In this research, a bibliometric analysis of 139 peer-reviewed articles on PPP in China is performed to reveal the research evolution and trend. Besides, a meta-analysis of 111 empirical articles among the total 139 articles is conducted using multinomial logistic regression to examine how data characteristics and analytical features have been utilized in this area. The major findings suggest that, first, many studies are published in the subject areas of Business, Management and Accounting, and Engineering, and most topics are discussed from the micro-level perspective. Second, the issues in the procurement phase lack enough attention. Third, for studies with different research themes, how data characteristics and analytical features have been utilized significantly differ. In general, how PPP studies are approached in China contrasts with the global PPP research. Future research directions are proposed. The research contributes to the global PPP body of knowledge and methodology by providing the first quantitative review of studies on PPP in China and by combining the research methods.

Role of Chinese government and Public–Private Partnership in combating COVID-19 in China

COVID-19 has been called a Global Health Emergency worldwide. According to their available resources, developed and developing countries' public and private sectors are fighting against this pandemic. This paper examines how effective the Public–Private Partnership (PPP) strategies under the Chinese government response to control this COVID-19. The study takes the Chinese government and private sector's collective efforts for analysis and discussion from January 01 to October 31, 2020. Applying linear regression revealed that public governance strategies have worked to control this pandemic's severity and frequency. The results also show that despite the negative COVID-19 graph, the Chinese government has remained consistent in health and stringency measures. Furthermore, in cooperation with private sectors, China's emergency management has built two makeshift hospitals in 12 days and 5G technology implementation; Health Code application and volunteer works illustrate sharing governance by PPP. The study advises that by keeping in mind the strategy of PPP in China, other countries should also involve private sectors to mitigate emergency issues like COVID-19 for fast and effective outcomes and ask for assistance from the Chinese government and follow their quarantine and prudent policies to control this contagious disease. It further suggests that governments should engage private sectors before draft effective emergency preparedness policies to fight against future calamities.

Public–private partnerships: implications from policy changes for practice in managing risks

PurposeThis paper investigates the policy changes made towards infrastructure public–private partnerships (PPPs). The purpose of this study is to empirically identify the policy risks associated with the development of PPPs and to assess their impacts on the projects.Design/methodology/approachA case study of the policy changes that have been implemented for PPPs in China over the past seven years has been undertaken and is presented in this study. The causal loop diagrams are applied to assess and illustrate the potential impacts of the risks as a result of such changes on PPPs.FindingsA sequence of the policy risks, which relate to PPP risk allocation, contract management and implementation, payment and abatement mechanisms and financing, has been identified. It is also found that the identified risks will generate significant but negative impacts on PPPs, leading to an ineffective project delivery, low revenue, poor service quality and even contract breach.Practical implicationsThis research provides the private-sector entities that will embark on PPPs with an insight into managing and controlling policy risks over the project's lifecycle.Originality/valuePPPs have been critical for infrastructure development worldwide. Nevertheless, they have been a controversy, as many of them were subjected to poor outputs. Consequently, a variety of political mechanisms has been implemented to enhance the governance for PPPs. Policy can bring not only benefits but also risks and, however, policy risks of PPPs with a particular assessment for their potential impacts have received limited attention. Therefore, the study presented in this paper will contribute to the identification and assessment of policy risks within the context of PPPs.

PPPs in China: Does the Growth in Chinese PPPs Signal a Liberalising Economy?

ABSTRACT This study provides insight into the nature of public-private partnerships (PPPs) in China, a country that has invested more in PPPs than any other over the last two decades. It is puzzling that China, as a state-led economy, has turned to embrace PPPs. Pundits have taken this as evidence of a liberalising Chinese economy. However, our findings suggest that PPPs in China do not reflect a break from earlier, state-centric modes of governance; rather, the state essentially uses such partnerships as a mechanism to strengthen its own hand. We argue that the difference between how PPPs are being implemented in China compared to the West reflects differences in political economic contexts, both materially and ideologically. In both cases, the ambiguity surrounding the PPP model has been used to advance particular interests, serving as a reminder of both the ways in which power shapes the character of such policy tools and the differences in the relative power underpinning state-market relations in each context. By challenging mainstream interpretations of what PPPs are and what their proliferation means, studying the political economy of PPPs in a rising China further exposes the Western-centric nature of prevailing wisdom in political economy scholarship.

Public–private partnership as a driver of sustainable development: toward a conceptual framework of sustainability-oriented PPP

As an innovative model for infrastructure and public service delivery, public–private partnership (PPP) has become increasingly more popular around the world. PPP is facing the dilemma of development direction and value orientation since current studies and practices are mostly performed from an economic perspective. PPP leads according to sustainable development goals. This study briefly reviews the development of China’s PPP and summarizes the characteristics of PPP in China through the theory of evolutionary economic geography. Secondly, a conceptual framework of sustainability-oriented PPP is proposed with three phases named PPP1.0, PPP2.0, and PPP3.0. Thirdly, a case study named the Taizhou commuter-rail Line S1 PPP project has been adopted to verify the theoretical framework of the sustainability-oriented PPP. Lastly, the theoretical framework is analyzed and discussed based on the four dimensions: driving force, subject, process, and object. The results show that the sustainability-oriented PPP framework explains the development process and trend of PPP, not only meeting the PPP development needs in China, but also providing a reference value for other developing countries. This study has implications for decision making in China’s PPP policy and makes an innovative contribution to the global PPP knowledge body.

Legal Remedies for Public Private Partnerships in China

Although improving the quality and efficiency of public services, Public Private Partnerships (PPPs) are vulnerable to risks and disputes. Therefore, establishing effective legal remedies is of great significance to PPPs. In China, the existing regulations of remedies for PPPs have some problems, eg regarding aspects of the remedies’ subjects, triggering conditions, and methods. To improve PPPs’ legal remedies, the remedies’ subjects and triggering conditions should be broadened, the remedies’ methods should be reformed, and the applicable legal framework should be further improved. Keywords: public private partnerships, public procurement law, dispute resolution, legal remedies, China

Current Situation of Public Private Partnership Development for the Elderly in China

Chinese government is trying to use the Public-Private Partnership (PPP) to help the development of China’s elderly care industry. This article will analyze the characteristics of pension PPP projects, summarize the current status of China’s pension PPP projects and existing problems, and make some suggestions for these problems. Firstly, the article reviews the literature of China’s pension PPP projects, then introduces the common types of pension PPPs, and analyzes 107 pension service projects in the project management library of the Ministry of Finance’s PPP Center. Finally, it proposes the problems of existing PPP projects, and made some suggestions. The results of this study describe the current status of pension PPPs in China and provide useful references for future research.

Policy solution and game analysis for addressing the challenge of developing public–private partnership energy project

Various developing countries have been promoting public–private partnership (PPP) infrastructure projects in recent years. Energy infrastructure project construction, which needs substantial capital investments, is a cornerstone of and supports economic development. A PPP-based energy infrastructure project is beneficial for alleviating developing countries’ financial burden and for facilitating the diversified development of the energy market. Therefore, to increase government income and reduce infrastructure project costs, the PPP energy project construction model attracts considerable attention of various industries, especially in developing countries. For example, as gross domestic product growth decelerates and the government debt ratio rapidly increases, many Chinese provinces and cities face financial obstacles to economic development; therefore the Chinese government has issued a series of PPP-based energy policies. However, a number of risk factors associated with PPP projects, and conflicting interests between governments and private investors, have resulted in project failure. This study analyzes the development of PPP in China from the economic and industrial development perspective. It combines the latest PPP energy policies of China to solve problems that stem from the main risk factors involved in constructing and operating PPP energy projects. This research also provides game analysis for achieving maximum benefits as the government and the private investor have conflicting interests.

LIFECYCLE PERFORMANCE MEASUREMENT OF PUBLIC-PRIVATE PARTNERSHIPS: A CASE STUDY IN CHINA’S WATER SECTOR

Numerous public-private partnership (PPP) infrastructure projects have been operating in China after nearly 30 years of development. Surprisingly, few lessons and experiences have been drawn from these existing cases, thereby creating an urgent demand for a comprehensive evaluation of their performance. Thus, this paper presents a timely contribution to the assessment of a representative PPP project in China’s water sector, the Chengdu No. 6 Water Plant B Project, from a lifecycle perspective. Through a triangulation method, the project is generally deemed a success providing instructive lessons on the future evolutionary development of PPPs in China despite several imperfections caused by particular historical factors. Moreover, this paper advances the performance measurement of PPPs offering empirical insights to promote the efficacy of conceptual performance measurement frameworks. The outcomes of this research are especially valuable to the current Chinese PPP community where huge opportunities and challenges simultaneously exist.