International Law

China's Private Sector Rising.

By Dan

I know this is relatively old news, but until I saw it so well summarized at Thomas P.M. Barnett's Globalization Blog, I did not have the idea for this post. In Barnett's post, "Charts of the day: The decline of state capitalism....in China! Barnett highlights a recent Economist article on how China's rising entrepreneurship and "economic dynamism is owed in large part to its private sector. As the following two charts show, "China isn't succeeding through state capitalism, but despite its lingering presence."

Though I admittedly do not have a large enough base on which to make statements with any scientific accuracy, my impression is that China's private companies do tend to be better run than its State Owned Entities (SOEs) and they also tend more often to abide by their contracts.

Do you agree? Is this what you have seen?

Full post as published by China Law Blog on March 30, 2011 (boomark / email).