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The unfinished business of state-owned enterprise reform in the People's Republic of China

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  • Carsten A. Holz

Abstract

This paper examines the progress of state-owned enterprise (SOE) reform in the People’s Republic of China. After defining SOEs and considering their scope of operation within the PRC economy, the focus of the paper is on the major reform waves that followed the deterioration of SOE profitability in the early 1990s. The oil industry serves to illustrate industry-specific SOE reform trends as well as the latest reform developments. Until today, a stable, successful, longterm arrangement of state ownership has remained elusive. SOE reform is incomplete as long as a number of fundamental governance issues are not resolved. But these are difficult to resolve in the context of Party-controlled state-owned enterprises.

Suggested Citation

  • Carsten A. Holz, 2019. "The unfinished business of state-owned enterprise reform in the People's Republic of China," CESifo Working Paper Series 7688, CESifo.
    • Handle: RePEc:ces:ceswps:_7688
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    References listed on IDEAS

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    1. Brandt, Loren & Zhu, Xiaodong, 2010. "Accounting for China's Growth," IZA Discussion Papers 4764, Institute of Labor Economics (IZA).
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    5. McNally, Christopher A., 2002. "Strange Bedfellows: Communist Party Institutions and New Governance Mechanisms in Chinese State Holding Corporations," Business and Politics, Cambridge University Press, vol. 4(1), pages 91-115, April.
    6. Nicholas R. Lardy, 2014. "Markets over Mao: The Rise of Private Business in China," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6932, April.
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    Cited by:

    1. Li, Jing & Li, Liyao & Liu, Shimeng, 2022. "Attenuation of agglomeration economies: Evidence from the universe of Chinese manufacturing firms," Journal of Urban Economics, Elsevier, vol. 130(C).
    2. Hsu, Sara & Fan, Zhihao, 2022. "Policy and media forces that shape the creation of Chinese state-owned enterprise policies," Journal of Policy Modeling, Elsevier, vol. 44(6), pages 1232-1250.

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    More about this item

    Keywords

    state-owned enterprise reform; People’s Republic of China; corporate governance; public enterprise management; Chinese Communist Party; state-owned asset management; industrial policy;
    All these keywords.

    JEL classification:

    • P00 - Political Economy and Comparative Economic Systems - - General - - - General
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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