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The Oxford Companion to the Economics of China$
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Shenggen Fan, Ravi Kanbur, Shang-Jin Wei, and Xiaobo Zhang

Print publication date: 2014

Print ISBN-13: 9780199678204

Published to Oxford Scholarship Online: December 2014

DOI: 10.1093/acprof:oso/9780199678204.001.0001

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The future of private and state-owned enterprises in China

The future of private and state-owned enterprises in China

Chapter:
(p.285) 45 The future of private and state-owned enterprises in China
Source:
The Oxford Companion to the Economics of China
Author(s):

Weiying Zhang

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199678204.003.0046

This chapter discusses the future of private and state-owned enterprises (SOEs) in China. It first explains how the reform of SOEs proceeded and outlines the emergence of the private sector. It then suggests that the future of private and state-owned enterprises depends on the actions of next generation of leaders — whether they will restart economic reform and initiate political reform, or run the country the same way as the current leaders, based on the so-called Chinese model. There are four issues to be addressed: the need for China to change in its growth model in order to sustain its high growth; resentment caused by SOEs’s monopoly in key industries; SOE efficiency; and the urgent need for a nationwide social security net.

Keywords:   SOEs, private enterprise, private sector, economic reform, political reform

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