Govenrment and Business Environment Case Study

Chinese State-owned Enterprises:The Challenges

OR

Abstract:
China has long dominated the world manufacturing sector by virtue of its low cost labour and China's state-owned enterprises (SOEs) have been the principal drivers of the industry by providing the essential raw material-dominating the capital-intensive sectors such as power, steel, chemicals, machinery, and providing employment. Post 1978, China has been making a concerted effort to transform its 'planned economy' into a 'socialist market economy' by restructuring its problem ridden state-owned enterprises and making them profitable global players.

Pedagogical Objectives:

• To discuss the problems faced by the state-owned enterprises in China
• To discuss the importance of these institutions to the Chinese economy.

Keywords : State-owned enterprises (SOE), Iron-rice bowl, Soft-budget constraints, Governmental subsidies, Non-performing loans (NPLs), Zhuade Fangxiao, Corporate governance, State Assets Supervision and Administration Commission, Gaizhi, Shanghai Boasteel Group Corporation, China National Offshore Oil Corporation (CNOOC), Haier Group, Productivity, Bankruptcy, SOE reforms