By Eve Cary
The Diplomat - June 19, 2013
Although it faces strong resistance, reforms will be vital if the Chinese economy is to continue to evolve.
China’s huge apparatus of state-owned enterprises (SOEs) is a popular
punching bag: economists decry its inefficiencies; foreign politicians
complain about unfair competition; and many Chinese citizens criticize
public displays of waste, like elaborate banquets. The Chinese
government would counter that they provide a foundation for the economy
as a whole.
As China’s economy evolves (and it does, albeit slowly at times), the
clamor for SOE reform grows louder from all sides. What is the
potential for reform? How damaging are SOEs to the Chinese economy? On
the flip side, how have SOEs strengthened the system?
But first, a little background. According to Xinhua,
at the end of 2011, there were 144,700 state-owned enterprises with
total assets of 85.4 trillion yuan, revenues of 39.25 trillion yuan, and
profits of 2.6 trillion yuan (43 percent of China’s total industrial
and business profit).
To read more.....
No comments:
Post a Comment