Political risk for Chinese companies has increased significantly, according to Zeren Li, whose doctorate studies at Duke University focused on China's much more limited version of the "revolving door" — the American practice of regulators and lawmakers flipping back and forth between working for government and working for the lobbying industry.
I was reading this article and I was wondering how China's version of the "revolving door" between the private and the public sector was different to America's version of the revolving door and what made it much more limited? Is there some restrictive law in China that prevents to whom an ex-official can work for in the private sector and why is it much more limited?
Under current law, government officials who make contracting decisions must either wait a year before joining a military contractor or, if they want to switch immediately, must start in an affiliate or division unrelated to their government work. One big loophole is that these restrictions do not apply to many high-level policy makers, like Mr. Aldridge, who can join corporations or their boards without waiting.
It seems in the United States there's almost no restriction on what company you can work for and when you can do so, but in China I am wondering how different it is.
