Wade Across The Sea By Feeling The Way:China’s State Capital Going Out

By means of development anthropological ethnography in a Chinese state-owned farm in Tanzania, this research aims to explore how the state capital "going out" and operating overseas from micro level. Meanwhile, through the manager’s daily life and management practices, this research focuses on analysis of how to build social networks besides the produce process, how to deal with labor relations, and the unique cultural patterns of state capital in the process of "going out ". In this study, based on existing literature and field experience, will explaine from the following four aspects:The first part is the state-owned enterprises (SOE) reform and "going out" strategy. This chapter systematically reviews the history of contemporary SOE reform and the patterns of state capital "going out" historically. Chinese government in dealing with economical transition and national competitiveness enhance, chooses a combination way with both state intervention and market competition, instead of complete privatization and marketization in the West. So that the rapid rise of large SOE enhance China’s competitiveness in the world. With "going out" strategy, those SOE began to go abroad to invest in overseas factories. From "Overseas Chinese Business Network" in early time, to "Overseas Economic and Trade Cooperation Zone" at present, Chinese state capital explores a development path of "wade across the sea by feeling the way" which is mutually beneficial to China’s and the host countries.The second is the oversea history of the farm and their managers. This part reveals the historical process of state capital "going out", through the farm establishment, land reclamation, development, reform and reorganization. This process is tortuous, complicated and arduous. It is not like the Western media imagines that there is no obstacle with the support of national forces at all. In addition, the oversea managers have different personal experiences, who went abroad with different purpose, and their fates are ups and downs with the reform and social changes of policy. Meanwhile, with the replacement of managers, the new generation is influenced by multiculturalism and values which are increase the uncertainty and liquidity. The less sense of belonging and the identity confusion will undoubtedly become the psychological barrier of state capital "going out" in the future.The Third part is the social network of the farm. The unique operation way of the oversea state capital is reflected in this part through the analysis of the social network of the farm in case study. The study finds that the social network of SOE in the overseas is mainly divided into three categories:First, the vertical networks, including the vertical network of central enterprise, the social network of Chinese government and the local government; Second, the horizontal networks, including inter-firm social networks and association social networks; Third, social networks, including the network of research institutions, media and community. Managers embed the Chinese "relationship" into business management, constantly expanding business and personal social network, taking advantage of the special particular relationship between state-owned enterprises and government as well as their particular status, by intermediaries, exchange of relationship and contracts.The fourth part is the management practices of farm in case study, which mainly around SOE how to balance the economical benefit and national interests, as well as the conflicts between law and power, and how to deal with overseas labor-management relations. While, the labor-management relations is the key and difficult point of the business management. So this chapter explores three cultural characteristics inside the treatment of labor relations with detailed case, which prospectively are human ethics and gratitude, trust and loyalty, principle insist and justice tempered with mercy.