This book argues that the trade-distorting effects of advantages
associated with SOEs are more severe from an economic perspective,
and the behavior of SOEs after receiving advantages is of more
concern, compared to private-owned enterprises (POEs). The premise
is that the existence of SOEs per se is not the essential problem;
rather, the underlying problems are (i) the disproportionate
granting of advantages to SOEs (compared to POEs) and (ii) the
behavior of SOEs once they receive advantages. The book offers a
systematic analysis focusing on the various advantages granted to
SOEs and their subsequent behavior. Its detailed analysis reveals
the inadequacy of current WTO rules and is complemented by a number
of concrete proposals.
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