China has undergone considerable economic change since the late
1970s, but economic interests and political conflict produced by
reform have led to social dissatisfaction, despite an improved
standard of living. Further market reforms may result in job losses
within state-owned enterprises which will test both workers and
political leaders. This analysis of the industrial-reform measures
taken by the Chinese government between 1985 and 1995 seeks to
identify the economic and political tensions and contradictions
that state-enterprise reform has presented to a leadership intent
on maintaining its authoritative political position. Using
government sources, and interviews with economists and workers at
one of China's largest state-owned enterprises (The Second
Automobile Works), the author concludes that the relationship
between state policy and enterprise is a complex two-way process
characterized by tensions resulting from conflicting priorities.
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