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Typology of Chinese Market Economy and Trade Rules:A Case of Competitive Neutrality of State-Owned Enterprises

Author

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  • Mariko Watanabe

    (Professor, Faculty of Economics, Gakushuin University)

Abstract

How to engage China is more important than ever as global society is forging international rules. However, it is not straightforward to understand the characteristics of China’s market economy, given the wide diversity across industries, regions and firms. In order to present a practical view on Chinese economies, this paper first categorizes the types of market economies in China. Then, it examines cases that present challenges on trade rules. Specifically, in a mixed market such as the steel industry, the existence of state-owned enterprises distorts competitive neutrality through subsidies: The use of such subsidies should be disciplined.

Suggested Citation

  • Mariko Watanabe, 2020. "Typology of Chinese Market Economy and Trade Rules:A Case of Competitive Neutrality of State-Owned Enterprises," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 16(3), pages 1-14, August.
    • Handle: RePEc:mof:journl:ppr16_03_04
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    File URL: https://www.mof.go.jp/english/pri/publication/pp_review/ppr16_03_04.pdf
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    Cited by:

    1. Babasyan, Davit & Gu, Yunfan & Melecky, Martin, 2023. "Late banking transitions: Comparing Uzbekistan to earlier reformers," World Development Perspectives, Elsevier, vol. 30(C).

    More about this item

    Keywords

    State-owned enterprises; competitive neutrality; subsidies;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
    • L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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