Typology of Chinese Market Economy and Trade Rules:A Case of Competitive Neutrality of State-Owned Enterprises

Mariko Watanabe

Public Policy Review, 2020, vol. 16, issue 3, 1-14

Abstract: How to engage China is more important than ever as global society is forging international rules. However, it is not straightforward to understand the characteristics of China’s market economy, given the wide diversity across industries, regions and firms. In order to present a practical view on Chinese economies, this paper first categorizes the types of market economies in China. Then, it examines cases that present challenges on trade rules. Specifically, in a mixed market such as the steel industry, the existence of state-owned enterprises distorts competitive neutrality through subsidies: The use of such subsidies should be disciplined.

Keywords: State-owned enterprises; competitive neutrality; subsidies (search for similar items in EconPapers)
JEL-codes: G34 L61 L68 L88 P52 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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