Everyone knows that China’s state-owned enterprises (SOEs) are in dire need of reform. However, it seems the government wants to take its time through the reform process. The State Council’s recently released guideline document on SOE reforms hasn’t set any deadlines or quantifiable targets. Rather it seems to stress upon the importance of not rushing through or forcing any immature reforms. There’s a reason for that. Any attempt to speed up implementation of reforms at Chinese SOEs can have devastating consequences. We explain why.
Allen Wu, chip designer ARMʼs Greater China President, on how the company is navigating Chinaʼs increasingly treacherous environment for foreign companies.
The popular notion is that state-owned enterprises are very powerful in China. To what extent is that true? Are fears of China’s state capitalism overblown?
Do state-owned enterprises still hold sway over the Chinese economy? Economist Nicholas Lardy responds to that question, and lists out the five common misconceptions about China.
A combination of factors such as a slowing Chinese economy, rising costs, lethal competition and increased government scrutiny are changing the dynamics of business for MNCs in China. How should they cope? In the past three decades, China was the place to be for multinational companies (MNCs): a cheap labor force, effective infrastructure and an increasingly […]
China’s state-owned enterprises are making progress in honing competitiveness, despite political burdens In 2008, the seaport city of Duluth, Minnesota was catapulted to the gravitational center of US politics and foreign affairs. The state-owned Aviation Industry Corporation of China (AVIC) announced plans for one of its subsidiaries to acquire Duluth-based general aircraft manufacturer, Cirrus. There […]
You are invited to download the June issue of CKGSB Magazine. You’ll enjoy articles and interviews like: COVER STORY: The Future of Freemium: In light of the recent debate over whether WeChat should start charging its users, CKGSB Magazine takes a close look at the freemium model in which a company provides the bulk of its services […]
In December 1978, China began a series of economic reforms collectively termed as the “Reform and Opening Up” policy led by Deng Xiaoping, through which the country embraced “socialism with Chinese characteristics”. Since then, China’s policy makers have walked a winding path towards prosperity, herding the nation’s behemoth state-owned enterprises (SOEs) and an increasingly vibrant private sector in […]
China should adopt a measured but determined approach to banking reform. There is no doubt that banking reform must happen in China. With more than 80% of China’s leverage coming from banks, and lending going predominantly to large state-owned enterprises (SOEs), growth is not likely to take its traditionally strong foothold in small- and medium-sized […]
Why would a steel company get into a wildly-unrelated area such as pig breeding?