Business Case Studies, Govenrment and Business Environment Case Study, Chinese State-owned Enterprises,The Challenges

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Case Title:

Chinese State-owned Enterprises:The Challenges

Publication Year : 2004

Authors: Vashist.D & G Srikanth

Industry: General Business

Region:China

Case Code: GBE0022

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
China has long dominated the world manufacturing sector by virtue of its low cost labour and China's state-owned enterprises (SOEs) have been the principal drivers of the industry by providing the essential raw material-dominating the capital-intensive sectors such as power, steel, chemicals, machinery, and providing employment. Post 1978, China has been making a concerted effort to transform its 'planned economy' into a 'socialist market economy' by restructuring its problem ridden state-owned enterprises and making them profitable global players.

Pedagogical Objectives:

  • To discuss the problems faced by the state-owned enterprises in China
  • To discuss the importance of these institutions to the Chinese economy.

Keywords : State-owned enterprises (SOE), Iron-rice bowl, Soft-budget constraints, Governmental subsidies, Non-performing loans (NPLs), Zhuade Fangxiao, Corporate governance, State Assets Supervision and Administration Commission, Gaizhi, Shanghai Boasteel Group Corporation, China National Offshore Oil Corporation (CNOOC), Haier Group, Productivity, Bankruptcy, SOE reforms

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