Corporate Governance,Ownership Change and State Owned Enterprise Reform

Reform of China’s large state-owned enterprises (SOEs) is one of the most pressing problems facing the country today. Many SOEs are recognized as being inefficient loss-making and a major drain upon the country’s resources. This chapter reviews the recent performance of China’s SOEs, identifies the reforms which have already been implemented in this area, outlines the experiences of other transition economies in regard to the re-structuring of their SOEs, and places emphasis upon those options which are likely to be most applicable to the Chinese situation.