IDEAS home Printed from https://ideas.repec.org/a/taf/rjapxx/v1y1996i1p105-121.html
   My bibliography  Save this article

An assessment of the state sector reform in China: Viability of ‘legal person socialism’

Author

Listed:
  • Keun Lee

Abstract

The transformation of the old state enterprises into shareholding corporations is now being attempted as one form of corporatization in China. The Chinese authorities intend to encourage public‐oriented legal persons as shareholders for these shareholding corporations. This strategy, which can be termed ‘legal person socialism’, may be successful to the extent that corporatization brings in more funds and autonomy to the enterprises, but eventually more and more individual shareholders will have to be invited. Only currently ‘profitable’ state enterprises will be transformed into shareholding corporations and be able to sell stocks successfully. For loss‐making enterprises, transformation into shareholding corporations is now rarely permitted by the authorities and will not be a solution even if attempted. Thus, it can be said that the idea of legal person socialism is viable only for currently profitable enterprises if the state concentrates its financial and administrative resources on them, and that loss‐making enterprises are likely to be sold to or merged with domestic and foreign private investors. Thus, an emerging picture of the Chinese economy is that of a dual economic structure consisting of a majority of privately owned and a minority of state owned or controlled enterprises.

Suggested Citation

  • Keun Lee, 1996. "An assessment of the state sector reform in China: Viability of ‘legal person socialism’," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 1(1), pages 105-121.
  • Handle: RePEc:taf:rjapxx:v:1:y:1996:i:1:p:105-121
    DOI: 10.1080/13547869608724578
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13547869608724578
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/13547869608724578?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Manuel F. Montes, 1997. "Viet Nam: Transition as a Socialist Project in East Asia," WIDER Working Paper Series wp-1997-136, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjapxx:v:1:y:1996:i:1:p:105-121. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjap .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.