Title

Advance and retreat : the new two-pronged strategy of enterprise reform in China

Document Type

Journal article

Source Publication

Problems of Post-Communism

Publication Date

9-1-2001

Volume

48

Issue

5

First Page

52

Last Page

61

Publisher

Routledge

Abstract

During the Fourth Plenum of the Fifteenth Party Congress in September 1999, the Central Committee of the Chinese Communist Party (CCP) passed a Resolution on State Enterprise Reform that was replete with contradictions. It emphasized the significance of the state sector in China's economy, but promised to privatize state-owned enterprises faster (SOEs). It vowed to separate politics and enterprise, but asserted the importance of' Party control over SOEs. It pledged to "magnify'' (fangda) the role of state investments, while deeming it desirable to reduce the state sector's share in the economy. The resolution proposed a two-pronged strategy. First, debt-equity swaps (zhaizhuangu, or shares-for-loans) would turn around the debt-ridden state-owned enterprises. Second, new capital to finance enterprise restructuring would be raised by converting more SOEs into shareholding corporations and reducing the number of state shares in those that were already corporatized.

DOI

10.1080/10758216.2001.11655951

Print ISSN

10758216

Publisher Statement

Copyright © 2001 M.E. Sharpe, Inc. All rights reserved.

Additional Information

https://www.scopus.com/inward/record.uri?eid=2-s2.0-0035538431&partnerID=40&md5=0f8c5004fb50b241234fb81ed1a25815

Full-text Version

Publisher’s Version

Language

English

Recommended Citation

Ma, N., Mok, K.-h., & Cheung, A. B. L. (2001). Advance and retreat: The new two-pronged strategy of enterprise reform in China. Problems of Post-Communism, 48(5), 52-61. doi: 10.1080/10758216.2001.11655951

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