Rethinking China: Discourse, convergence and fair value accounting

There is a significant contradiction between the capitalist economic ambitions of China and the socialist rhetoric that dominates contemporary Chinese politics. Whilst the tension between the surplus orientation of a free market and the welfare orientation of socialism appear obvious, we know little about how these ideals are reconciled within China. In this paper we explore the role that accounting discourse has played in mediating the relationship between socialism and capitalism and in particular, the role that these discourses have played in the reframing of the free market at an ideological level. Using critical discourse analysis (CDA) we examine the convergence of Chinese Accounting Standards (CAS) with International Financial Reporting Standards (IFRS) and the uptake of Fair Value Accounting (FVA) as it was presented discursively by the government, the media and leading academics within China. We also explore forms of dissent and resistance. Our analysis points to the ways in which the use of accounting discourse has helped progress the market oriented ambitions of the Chinese Communist Party whilst allowing the coexistence of socialist ideals. Using the Chinese experience as an example, our paper provides further evidence of the important role accounting discourse continues to play in the ongoing neoliberalisation of political economies across the globe.