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Reforming China's enterprises / China's economy back on track

Charles Pigott and Waltraut Urban ()

No 2000-2_3, wiiw China Report from The Vienna Institute for International Economic Studies, wiiw

Abstract: Reforming China's enterprises The basic objectives of this article are to describe the problems of the enterprise sectors (state-owned enterprises and non-state enterprises); the main reforms being undertaken to solve the problems; the progress being made; and the issues that remain to be addressed. In addition to the individual areas of reform, the study also attempts to evaluate the overall progress being made toward its ultimate goals of securing enterprises' ability to compete over the longer term and to support economic growth in line with China¿s potential. The analysis takes as given the goals and constraints that together make China¿s reform process somewhat distinctive. At the same time, it seeks to apply insights derived from the experiences of OECD and other economies about the fundamental economic processes involved in systemic economic changes that are relevant to China as well. China's economy back on track In the first half of this year, the Chinese economy grew by 8.2%, significantly faster than in 1999. The acceleration of growth was based on both, domestic as well as external forces. Exports rose particularly fast, but investment and private consumption, too, were brisker than last year. Although a deceleration of growth is likely during the second half of the year, the growth rate of GDP over the year 2000 as a whole will be higher than originally expected, and should reach about 7.6%.

Date: 2000-10
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