Out-dated, inefficient and malfunctioning are some of the adjectives normally used to refer to Chinese SOEs. Their unhealthy financial situation poses a great threat to the future growth of the world’s second biggest economy. The Communist Party is pushing for a fresh set of reforms to make them able to compete globally. For decades, these companies knew little about competition or innovation, until today.
Economic reforms in China
Three decades after admired reformist leader Deng Xiaoping launched his experimental plan of economic reforms, the new Chinese president Xi Jinping is nowadays facing the exact same challenges (and pressures) than his revered comrade. Moreover, Mr Xi’s political survival depends on his ability to earn the trust of the masses and offer them real options for progress. He will have to find a way to do so without tamping the privileges of all those wealthy entrepreneurs who benefited from Mr Deng’s capitalist reforms.
BEIJING/ NEW YORK | By Zhang Yuanan, Chen Lixiong, and Chen Qin via Caixin | Major changes to the trade landscape are coming, meaning China must adapt or risk losing its growth momentum. Here’s why Trans-Pacific Partnership (TPP) stands out from many other trade talks.