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SOEs in China

In 1994, china began a profound reform of its state owned enterprise. Local government have initiated these reforms, which are proceeding in economically and politically sensible ways. In 1994, China began a quiet reform in privatising and restructuring its SOEs under the slogan ‘grasping the large and letting go the small’. This reform has proceeded in three areas, privatisation of small SOEs at the county level, Mass layoffs of SOEs workers at the city level, and mergers groupings/ conglomerations, corporatizations, and initial public offerings of some large SOEs which often involve the central government.

SOEs reform has made significant progress in the first tow areas, by the end of 1996, up to 70% of small SOEs had been privatised in pioneering provinces and about half were privatised in many other provinces. In addition, about ten million workers from SOEs and urban collectives were laid off by the end of 1996 and up to twenty million, or more than 10% of urban labour forc...

Posted by: Anthony Pacella

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