Obstacles Hindering the Establishment of a Modern State-owned Enterprise System in Mainland China

Abstract

The reform of state-owned enterprises was supposed to be the focus of economic reform in 1995. The new policy, however, soon incurred strong resistance from conservatives. After a series of heated debates, the Beijing government finally decided to keep the reforms at an experimental level for the time being, in consideration of their side-effects and their likely impact on social stability in the post-Deng Xiaoping period. This paper will analyze the six major obstacles hindering the implementation of the new policy.