Using a series of studies, this book shows that ownership structure
plays a major role in the national economy as a whole. Inefficient
State Owned Enterprises (SOE's) damage the development of private
enterprises and overall economic growth in various ways. The policy
implications are very clear: in order to achieve healthy and fast
economic development, there must be a radical reform of SOEs.
Moreover, the aim of the SOE reform is not just to highlight the
enterprises' efficiency, but also create favorable conditions for
financial deregulation, elimination of market segmentation,
weakened market monopoly, and balanced regional economic
development. The book argues that SOE reform is pivotal to
stimulating general economic reform and development in order for
China to achieve a smooth transition to a mature market economy.
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