China Inc.: Between State Capitalism and Economic Statecraft

In the 1990s, China's state-owned enterprises (SOEs) underwent significant reforms, leading to mass closures, job losses, and stock market listings. Today, they remain a crucial part of the economy, producing one-third of GDP and providing one-fifth of jobs.

Format: Hardback
Length: 378 pages
Publication date: 28 February 2022
Publisher: Pentagon Press

The 1990s saw significant reforms in China's state-owned enterprises (SOEs), leading to widespread closures of businesses, the displacement of tens of millions of workers, and the listing of many of the largest state firms on the stock market. Today, SOEs account for one-third of China's GDP and employ one-fifth of its workforce. They have been tasked with re-engineering the country's production relations.

The reforms aimed to modernize SOEs and increase their competitiveness in the global market. They involved a combination of privatization, restructuring, and marketization measures. Private ownership was introduced to some SOEs, while others were restructured to improve efficiency and profitability. The market was allowed to play a greater role in determining the prices of goods and services produced by SOEs.

However, the reforms were not without their challenges. Many SOEs were struggling to adapt to the new economic environment, and many workers lost their jobs as a result of closures and layoffs. The stock market listings of SOEs also brought new risks and uncertainties, as investors were concerned about the financial stability and management of these companies.

Despite these challenges, the reforms have had a significant impact on China's economy. SOEs have become more efficient and competitive, and they have contributed to the country's economic growth. They have also played an important role in providing employment and social welfare benefits to millions of workers.

However, there are still concerns about the role of SOEs in China's economy. Some argue that they are still too large and inefficient, and that they continue to dominate certain sectors of the economy, limiting competition and innovation. Others argue that the reforms have not gone far enough, and that more needs to be done to promote private enterprise and reduce the government's role in the economy.

In conclusion, the reforms of China's state-owned enterprises in the 1990s were a significant step towards modernizing the country's economy and increasing its competitiveness in the global market. While there were challenges and uncertainties associated with these reforms, they have had a positive impact on China's economy and have contributed to the country's economic growth. However, there is still work to be done to ensure that SOEs continue to play a positive role in the economy and that they are able to adapt to the changing economic environment.

Weight: 712g
Dimension: 160 x 238 x 35 (mm)
ISBN-13: 9789390095353