03 November 2016
ThinkChina.dk Policy Brief: State Enterprise Reform is Back
In this policy brief, Professor Barry Naughton, Sokwanlok Chair of Chinese International Affairs, UC San Diego, takes stock of the reforms of China’s state-owned enterprises (SOEs).
The Policy Brief argues that
- Even though SOE reforms were announced three years ago, 2016 is often referred to as “year one of implementation of SOE reforms”
- Contradictions among the reform objectives make it difficult to design a coherent reform
- If SOE reform turns out successful, it will be because of the innovations pioneered in the ‘pilot regions’, i.e. Shandong, Shanghai, Guangdong, Jiangxi and Chongqing
- Some SOEs appear to have unlimited money and flexibility – and are anything but ‘lumbering dinosaurs’. But also that while flexibility can be good it can also be a recipe for waste
- Central SOEs will continue to challenge the principles of global capitalism and the incumbents in key industries; local SOEs may evolve into attractive partners for companies outside China.
Download: State Enterprise Reform is Back.