The reform plan unveiled following the Third Plenum has refocused attention on the position of state-owned firms in China’s economy. During the first decade of this century, China’s state sector shrank in size and economic importance while more productive private firms came to account for a growing share of employment and assets. That trend has reversed in the last few years. The Plenum pledge to grant markets a “decisive” role in resource allocation, if followed through, should enable private firms to compete more effectively, by bringing the prices that different firms pay for inputs closer into line and also removing barriers to entry.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services