Reputational Governance and Party-State Capitalism: A Tale of Two Chinese-Sponsored Railways in Africa

Abstract

How do Chinese state-owned enterprises (SOEs) involved in Belt and Road Initiative (BRI) projects navigate international pushback, balance political directives with commercial objectives, and comply with intensified Party oversight? This article addresses a key gap in party-state capitalism literature by exploring the under-examined role of reputational governance in shaping the operations of Chinese SOEs abroad. Drawing on interviews and fieldwork in China, Ethiopia, Zambia and Tanzania, we analyze the reputational governance practices of a SOE that spearheaded two flagship railway projects: the Tanzania–Zambia Railway and the Addis Ababa-Djibouti Railway. We argue that reputational governance is a core feature of party-state capitalism, with overseas SOEs serving as examples of this unique model, where elements of party loyalty and capitalism coexist.