Intractable Problems Of SOE Reform in China

March 2004 | Economic Analysis

Reform of the SOE sector is proving to be one of the most controversial areas of reform of China's economy, with important implications for the banking sector and political stability. BMI View: Despite the progress made over the past few years in shrinking the size of China's state-owned sector, fear of creating unemployment that may lead to social unrest, is preventing the government from taking the necessary root and branch reforms needed to transform the sector.

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