China's Large Enterprises and the Challenge of Late by Dyla Sutherland

By Dyla Sutherland

Considers the 'late industrialisation' of China, displaying how executive guidelines have inspired the advance of one hundred twenty 'national champions' (akin to jap keiretsu and South Korean chaebol ), how those 'national champions' compete with multinational businesses, and the way China's swift and profitable 'late industrialisation' doesn't healthy orthodox fiscal theories. The ebook presents a close representation of those wider matters with a case learn of the car undefined.

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Extra info for China's Large Enterprises and the Challenge of Late Industrialisation (Routledgecurzonstudies on the Chinese Economy)

Sample text

It is an extremely rapid industrialization process that has primarily been responsible for China’s remarkable rate of economic growth. It is often pointed out that the state enterprise share of total output has fallen dramatically, to under 35 per cent from an initial 80 per cent in 1978 according to one estimate (EEAU 1997: 26). The private sector and quasi-private sector’s share of total output has therefore considerably increased. This distinct trend is commonly used to support the argument that a dynamic private sector facilitated by greater liberalization, embodied by small-scale enterprises, has been the primary factor driving China’s industrial growth.

Such a remarkable growth story clearly has important implications for development thinking. Credible explanations or theories for this miraculous performance must convincingly explain the major contributory factors. Key to this has been the rapid industrialization of the country, and it is this process that must be fully explained. Indeed, over the period discussed the share of the agricultural workforce decreased from 71 per cent to 50 per cent of the total. The share of industrial output in total output also increased from approximately 30 per cent at the beginning of reforms to over 50 per cent by 1995 (EEAU 1997: 26).

As noted in the previous chapter, this is consistent with the state policy of ‘grasping the large and letting go of the small’. As a result of this policy, and the natural gravitation towards concentration in certain sectors, state industrial output is increasingly concentrated in a small number of large enterprises. These, on average, have also grown in scale. Thus by 1997 official statistics record that approximately two-thirds of state industrial output was already attributable to LMEs, up from about 60 per cent in 1995, several years earlier (ZTN 1998: 444).

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