A (re)interpretation of recent developments in the reform of state-owned enterprises

Reform of state-owned enterprises (SOEs) is a central issue confronting China. The government has privatised a range of small and medium sized SOEs; however, it has ruled out privatising large SOEs which are dominant in strategic sectors such as manufacturing, mining and power. Instead, it has developed enterprise groups with extensive cross-ownership which are based on the chaebol in South Korea and the Keiretsu in Japan. The article evaluated these recent directions in reform. (DÜI-Sen)