Case study into the market-oriented strategies and performance of State-owned Enterprises in a transition economy - 中欧社会论坛 - China Europa Forum

Case study into the market-oriented strategies and performance of State-owned Enterprises in a transition economy

Authors: Sun Yongfeng, Zhang Rui and Li Yuan

Extract from ” Zhongguo Ruankexue (China Soft Science Magazine), Vol.7, 2003, pp 80-83“

In China’s transition economy, new government measures aim to establish and improve a market-oriented economy. This economy will in turn give rise to an institutional and market environment that promotes the efficient management and use of capital, labour, products and technology. Reforming the country’s institutions requires their progressive transformation at a regulatory, legal and also human level. The outdated regulatory frameworks of previously established institutions co-exist with newly created ones that are developing at a slow and uneven pace. The effects of this can be seen in the current economy, which is subject both to market-imposed rules and those left over from China’s previous economic system. On one hand, state influence over business remains strong, while one the other, new market principles create opportunities and put businesses under pressure. Developing strategies that are well-adapted to the current political environment and yet also exploit market opportunities, has become a difficult challenge for state-owned enterprises (SOEs).

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