Reforming China's Enterprises

Reforms to China’s enterprises are central to the effort to complete the transformation to a market economy that has been underway since 1978. Reforms have become all the more urgent with the severe financial problems now being suffered by a large portion of China’s businesses, and with China’s prospective entry into the World Trade Organisation. Enterprise reforms involve both state owned and non-state businesses, and encompass a wide range of individual policies to bolster financial performances, improve behaviour, and provide supporting institutions and infrastructure essential to a modern enterprise economy. The study in this volume describes the main reforms that are being undertaken in each of these areas, the progress that is being made, the problems that are being encountered, and the challenges that remain to be overcome. The overall message is that the enterprise reforms are now at a critical juncture. Important progress is being made; but much more remains to be done and rapid advances are needed in several key areas if the overall reform process is to be sustained and China is to realise its growth potential. Topics covered: the current situation of China’s enterprises; economic restructuring and SOE reorganisation; establishing effective corporate governance mechanisms; the role of the financial system; developing social security programmes.