Policy Brief: State Enterprise Reform is Back – University of Copenhagen

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03 November 2016 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.