I never said that china was a world power, but that it is a big economy
Sure, i myself am laughing.
You deny that many of the SOE are inefficient and unprofitable? And i never said for china to emulate india. But china needs economic reforms.
Of course it works. Until its doesnt.
State intervention is necessary in an economy, of course, and the chinese economy needs state intervention. I think that R&D financing is one of the areas that the chinese government must focus. But one thing is a capitalist economy with limited state intervention, another is an state capitalist economy where not only the state intervenes heavily but worst of all own much of the economy.
Not quite. In the case of china, the government (central and local) much of the priority goes to employment for obvious political reasons, while a private company prioritizes profit and effficiency.
As it is now private company already make up large part of GDP I thnk it is something like 70%. One does not need to be dogmatic about SOE There is a place for SOE in developing country like China specially for latecomer in industrial world. As Andrew said all those company that affect the well being of large part of population like Utility, , Rail transport and maybe Defense industry and other strategic industry should be left with SOE but wide latittude should be given to private companies to provide competition to SOE and their property should be protected.
Only SOE has the capital and manpower to provide competition to the huge Multi national company Left on their own no private company will enter high risk,huge capital requirement, long recovery time of high tech like semiconductor or Aerospace .That is why China is lagging when it come to Semiconductor and Aerospace. It was not until the Gov provide loan guarantee , capital and cheap land are those industries start to take root in China. The choice would be to let the MNC control China strategic industry or worst depend on import! And we all know how disastrous it can be
Beside profit there are other social aspect of the companies like providing employment, training skill and making sure they are providing lowest fee for the service and incubation place for high tech in China
As of 2018,
China's private sector accounted between 70% and 80% of the
GDP; the
private sector is also responsible for 80% of urban employment and 90% of new jobs. According to the IMF, on a per capita income basis,
China ranked 73rd by
GDP (PPP) per capita in 2019.
GDP by component: : Household consumption: ...
Public debt: 47% of GDP (2017 est.)
GDP per capita rank:
; 69th ...
GDP rank:
;