The Kuomintang's secret service in action in South China: operational and political aspects of the arrest of Liao Chengzhi (1942)

The arrest in May 1942 of Liao Chengzhi – a CCP spy chief as well as the son of a celebrated KMT elder assassinated in 1925 – is considered a Big Case in China. Using the original KMT case file on Liao Chengzhi, van de Ven describes how the KMT's secret service turned the Jiangxi Provincial Committee and then arrested leading members of the CCP in south China and thereby eliminated its organization there. The article further uses letters by prominent CCP and KMT personalities involved in the case to suggest the existence of a revolutionary aristocracy bound by personal relations and with an elite code of conduct. When the political will was present, members of this elite deployed their personal connections in the search for solutions to complex political problems.     

Corporate governance in Germany: The changing role of the banks

The article analyses the different channels ‐ industrial stakes, supervisory board mandates, proxy voting ‐ by which German banks can exert influence on industrial companies. The central thesis is that even where the banks have such influence they do not dominate the companies. A recent empirical study on the effects of the alleged bank dominance over industrial companies with detrimental effects on their performance is shown to contain major methodological mistakes. The relationship between banks and industry is undergoing some distinct changes. Banks have substantially reduced their industrial stakes as well as their representation on supervisory boards, which underlines that they are not striving for industrial leadership. Despite a clear trend in the German corporate sector to pay increasing attention to shareholder value and to provide more transparency in accounting, it seems premature to expect the German capital market, including the corporate governance system, to incorporate fully the Anglo‐Saxon model in the immediate future.