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Original Articles

State-Owned Enterprise Reform in Post-Mao China

Pages 24-53 | Published online: 31 Dec 2007

REEFERENCES

  • 1. COEs operate in a manner more similar to private competitive enterprises than to traditional public enterprises. SOEs have significant differences from COEs in terms of location, ownership form, property rights, functional structure, and policy environment.
  • 2. Yuan is used as a monetary unit in this chapter. US$1 is about 8.3 yuan.
  • 3. One should be cautious about the economic data reported by the Chinese government. Government statistics are often believed to have exaggerated profits and understated losses. For example, see Lardy, N. China's Unfinished Economic Revolution; Brookings Institution Press: Washington DC, 1998. However, statistics from SOEs may be different. In many cases, SOE managers intend to “hide” their profits that would otherwise go to the state and to exaggerate losses to obtain tax relief and soft loans. The above data come from: The National Statistical Bureau of China. The Chinese Statistics Annual; The Statistics Press: Beijing, 2001.
  • Liou , K.-T. 1999 . Strategies and Lessons of China's Post-Mao Economic Development . Policy Studies Review , 16 ( 1 ) : 183 – 208 .
  • Lee , P. N. and Lo , C. W. 2001 . “ Remaking China's Public Management: Problem Areas and Analytical Perspectives ” . In Remaking China's Public Management , Edited by: Nan-Shong Lee , Peter and Wing-Hung Lo , Carlos . Westport, CT : Quorum Books .
  • Denigan , M. 2001 . Defining Public Administration in the People's Republic of China: A Platform for Future Discourse . Public Performance & Management Review , 24 ( 3 ) : 215 – 232 .
  • Liou , K. 1998 . Managing Economic Reforms in Post-Mao China , 1 – 18 . Westport, CT : Praeger .
  • 8. Prybyla, J. S. Key Issues in the Chinese Economy. Asian Survey 1981, 21 (9), 925–946; Prybyla, J. S. Why China's Economic Reforms Fail. Asian Survey 1989, 29 (11), 1017–1032; Prybyla, J. S. Economic Reform of Socialism: The Dengist Course in China. Annals of the American Academy of Political and Social Science 1990, 507, 9–17.
  • 9. The National Statistical Bureau of China, op. cit.
  • He , F. 1998 . Contemporary China's Fiscal Issues , Beijing : Contemporary China Press .
  • 11. The basic experience is “liang can yi gai san jie he.” Liang can (two types of participation) means cadres participate in work and employees participate in management. Yi gai (one change) means changing unreasonable rules and procedures. San jiehe (integrating three types of people) means that managers, technicians, and workers should collaborate with each other.
  • 12. It focused on issues including quality assurance, product variety, material saving, cost control and productivity improvement. It also contains some democratic management methods and a job responsibility system.
  • 13. Xu, Z.; Xu, J. The Development History of China's Public Enterprises 1927–1965 (Chinese); The Press of Shang Hai Social Science Academy: Shanghai, China, 1992; Xu, Z.; Li, L. The Development History of China's Public Enterprises 1966–1992 (Chinese); The Press of Shang Hai Social Science Academy: Shanghai, China, 1996.
  • The Social Science Academy of China . 1998 . China's Industrial Development Report , Beijing : The Economics and Management Press .
  • 15. Broadman, H. G. Meeting the Challenge of Chinese Enterprise Reform. World Bank Discussion Papers 1995, 283; The Social Science Academy of China, op. cit.
  • 16. Broadman, H. G., op. cit.
  • 17. Li, R. R. Report, the National Meeting on Economic and Trade December 6, 2001.
  • OEC , D. 2000 . Reforming China's Enterprises , 14 Paris : OECD .
  • 19. It is beneficial to approach administrative reform from a public policy perspective (25), such as the formulation, implementation, and evaluation of SOE reform. See: Pierre, J. Parallel Paths? Administrative Reform, Public Policy and Politico-Bureaucratic Relationships in Sweden. In Politicians, Bureaucrats and Administrative Reform, B. Guy Peters; Jon Pierre, Eds.; Routledge: London and New York, 2001.
  • 20. Liou, K., 1996, op. cit.
  • Huang , Y. 2001 . Internal and External Reforms: Experiments and Lessons from China . Cato Journal , 21 ( 1 ) : 43 – 64 .
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  • Yang , J. and Xin , Z. 2001 . Operational Guide for SOE Strategic Reorganization , Bejing : The Press of Enterprise Management . (Chinese)
  • 24. Ibid.
  • 25. Ibid.
  • 26. Ibid.
  • Parker , E. 1999 . Are Wage Increases in Chinese State Industry Efficient? Productivity in Nnajing's Machine-Building Industry . Contemporary Economic Policy , 17 ( 1 ) : 54 – 67 .
  • Hou , Y. C. 2001 . Three Years Tough Work: SOE Reform and Turning Around , Bejing : Jiuzhou Press . (Chinese)
  • Liou , K. 1992 . Privatizing State-Owned Enterprises: The Taiwan Experience . Int. Review of Administrative Sciences , 5 ( 3 ) : 403 – 419 .
  • 30. The National Statistical Bureau of China, op. cit.
  • Errunza , V. R. and Azumdar , S. C. 2001 . Privatization: A Theoretical Framework . Journal of International Financial Markets, Institutions & Money , 11 : 339 – 362 .
  • Hayek , F. A. 1994 . The Road to Serfdom , Chicago : University of Chicago Press .
  • 33. Stiglitz, J. More Instruments and Broader Goals: Moving Toward the Post-Washington Consensus. WIDER Angle 1997, 2, World Institute for Development Economics Research: Helsinki, 1997; 1–3.
  • 34. In reform years, the output growth rate of non-SOEs is 28.2%, higher than SOEs' 13.8%. In The Social Science Academy of China, op. cit.
  • Yarrow , G. A . 1999 . Theory of Privatization, or Why Bureaucrats Are Still in Business . World Development , 27 ( 1 ) : 157 – 168 .
  • Xu , X. and Wang , Y. 1999 . Ownership Structure and Corporate Governance in Chinese Stock Companies . China Economic Review , 10 : 75 – 98 .
  • Qi , D. , Wu , W. and Zhang , H. 2000 . Shareholding Structure and Corporate Performance of Partially Privatized Firms: Evidence from Listed Chinese Companies . Pacific-Basin Finance Journal , 8 : 587 – 610 .
  • Young , M. N. and McGuinness , P. B. 2001 . The Missing Link: Why Stock Markets Have Been Ineffective in Chinese SOE Reform . Business Horizons , July–August : 55 – 62 .
  • Jones , L. P. , ed. 1982 . Public Enterprise in Less-Developed Countries , Cambridge : Cambridge University Press .
  • Ramamurti , R. 1999 . Why Haven't Developing Countries Privatized Deeper and Faster? . World Development , 27 ( 1 ) : 137 – 155 .
  • Tohamy , S. M. and Aranson , P. H. 2001 . “ Privatization: A Positive Analysis with Extensions to the MENA Region ” . In State-Owned Enterprises in the Middle East and North Africa: Privatization, Performance and Reform , Edited by: Celasun , Merih . 42 London and New York : Routledge .
  • Zhu , Rong J. 1993 . News . Beijing Review , May 24–30 : 14
  • Xu , L. C. and Zou , H. 2000 . Explaining the Changes of Income Distribution in China . China Economic Review , 11 : 149 – 170 .
  • 44. Stiglitz, J. More Instruments and Broader Goals: Moving Toward the Post-Washington Consensus. WIDER Angle 1997, 2, World Institute for Development Economics Research: Helsinki; 1–3.
  • Chandler , A. D. 1962 . Strategy and Structure , Cambridge, MA : MIT Press .
  • Guo , S. 2000 . Post-Mao China: From Totalitarianism to Authoritarianism? , Westport, CT : Praeger .
  • 47. Tiao refers to the central ministry in charge of the relevant industry; Kuai refers to the provincial or local government.
  • 48. Young, M. N.; McGuinness, P. B., op. cit.
  • Wang , D. J. 1998 . 20 Years of China's SOE Reform , Zhengzhou, , China : The Zhong Zhou Press of Traditional Literature . (Chinese)
  • Liu , Z. and Zhuang , J. 1998 . Evaluating Partial Reforms in the Chinese State Industrial Sector: A Stochastic Frontier Cost Function Approach . International Review of Applied Economics , 12 ( 1 ) : 9 – 24 .
  • Hassard , J. , Sheehan , J. and Morris , J. 1999 . Enterprise Reform in Post-Deng China . International Studies of Management and Organizations , 29 ( 3 ) : 54 – 83 .
  • Choe , C. and Yin , X. 2000 . Contract Management Responsibility System and Profit Incentives in China's State-Owned Enterprises . China Economic Review , 11 : 98 – 112 .
  • Freund , E. M. 2001 . “ Falling Flat: The Challenge of Corporatizing China's State Industry ” . In Remaking China's Public Management , Edited by: Peter Nan-Shong Lee , P. and Wing-Hung Lo , C. Westport, CT : Quorum Books .
  • 54. McNally, C. A. China's State Sector Under Reform: Old Wine in a New Bottle? In Peter Nan-Shong Lee, P.; Wing-Hung Lo, C., op. cit.; 162.
  • 55. Parker, E., op. cit.
  • Peters , B. G. and Pierre , J. 2001 . “ Civil Servants and Politicians: The Changing Balance ” . In Politicians, Bureaucrats and Administrative Reform , Edited by: Peters , B. G. and Pierre , J. London and New York : Routledge .
  • Ma , S. K. 1999 . Man of Efficiency and Man of Ethics: Can China's Administrative Reform Produce Both for Her Economic Development? . Policy Studies Review , 16 ( 2 ) : 133 – 146 .
  • 58. Ramamurti, R., op. cit.
  • Branine , M. 1997 . Change and Continuity in Chinese Employment Relationships . New Zealand Journal of Industrial Relations , 22 ( 1 ) : 77 – 94 .
  • Laaksonen , O. 1988 . Management in China During and After Mao , Berlin : Walter de Gruyter & Co .
  • The Enterprise Association of China . 2001 . Development Report on Chinese Enterprises , Bejing : The Press of Enterprise Management . (Chinese)
  • 62. Ibid.
  • 63. Ibid.
  • 64. Yang, K. On the Sustainable Growth of Chinese Large Companies (Chinese); Ph.D. dissertation, Renmin University of China: 2001.
  • 65. The Enterprise Association of China, op. cit.
  • Celasun , M. 2001 . “ Perspectives on State-Owned Enterprise Reform and Privatization in the MENA region: An Overview ” . In State-Owned Enterprises in the Middle East and North Africa: Privatization, Performance and Reform , Edited by: Celasun , Merih . 14 New York : Routledge .
  • 67. OECD, op. cit., p. 15.
  • Zhou , M. and Wang , X. 2000 . Agency Cost and the Crisis of China's SOE . China Economic Review , 11 : 297 – 317 .
  • 69. McNally, C. A., op. cit.
  • Zhu , R. J. 1996 . Guozi Guanli (The Administration of State Assets). . Tigai Xinxi (System Reform News) , June : 4 – 5 .
  • Yang , R. and Zhou , Y. 1998 . Contingency Governance and SOE Supervision . Economic Research (China) , : 3

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