Public private partnerships in China

Abstract

PurposePublic private partnership (PPP), which has been operating in China for over 20 years. In addition, an increased focus on value for money in the public sector has led to a need to improve the efficiency of the management, delivery and effectiveness of public services, especially at the local level. This paper aims to examines the PPP system and the problems yet to be overcome at a time when China is seeking to widen the use of PPP in sectors as yet not open to it.Design/methodology/approachThe paper examines the current PPP system in China and identifies the constraints facing it in the context of several models of bureaucracy arguing that these are as valid in China as they have been in the West.FindingsThe paper argues that there are five key constraints present in the Chinese PPP system and that these are fundamentally associated with risks of various types.Practical implicationsExtending PPP in China will require significant reform of public sector administration, closer supervision, transparent regulatory systems and easier access to capital for local private sector firms.Originality/valueThis paper should be of interest to both academics and practitioners in the field of PPP in terms of theoretical debate, key issues and the specific prospects for PPP in China.