Government ownership boosts environmental responsibility in Chinese manufacturing, foreign firms follow suit.
Ownership structure affects how much companies care about the environment. State-owned companies in China care more about the environment because the government owns them. Central government ownership has a bigger impact on environmental responsibility than local government ownership. Foreign-owned companies also care about the environment, even more than private companies. However, government-owned companies still care the most. Companies where the owners have less control care less about the environment, especially state-owned ones.