月大学 TONGJI UNIVERSITY Who are China's New Private Entrepreneur? Dr. Pan Xuan School of Economics and Management Tongji University
Who are China's Who are China's Who are China's Who are China's New Private Entrepreneur? New Private Entrepreneur? New Private Entrepreneur? New Private Entrepreneur? Dr. Pan Xuan School of Economics and Management Tongji University
同濟大学 TONGJI UNIVERSITY The Starting Point 1978,China's industry was made up of thousands of simllar,publicly owned organizations. urban and middle- 95%of output Rural sized enterprises Collectives Urban very small firms <5%of output Collectives SOEs multiplant not exist corporatlons 2
2 The Starting Point The Starting Point The Starting Point The Starting Point • 1978, China's industry was made up of thousands of similar, publicly 1978, China's industry was made up of thousands of similar, publicly 1978, China's industry was made up of thousands of similar, publicly 1978, China's industry was made up of thousands of similar, publicly owned organizations. owned organizations. owned organizations. owned organizations. % of Industrial Output (1978) % of Industrial Output (1978) % of Industrial Output (1978) % of Industrial Output (1978) 77% 14% 9% SOEs Urban Collectives Collectives Collectives Collectives Rural Collectives Collectives Collectives Collectives urban and middle- urban and middle- urban and middle- urban and middlesized enterprises sized enterprises sized enterprises sized enterprises > 95% of output > 95% of output > 95% of output > 95% of output very small firms very small firms very small firms very small firms < 5% of output < 5% of output < 5% of output < 5% of output multiplant multiplant multiplant multiplant corporations corporations corporations corporations not exist not exist not exist not exist
同濟大学 TONGJI UNIVERSITY In the First Period of Transition(1978-1996) By 1996,China had developed a tripod industrial structure:state, collective,and private(domestic and foreign)firms each produced about 1/3 of total output. Ownership composition of industrial output(percent of current-price output) 1978 1996 State-owned enterprises 77 33 Collective enterprises 23 36 (of which:TVEs) (28) Private and household 0 19 Foreign invested 0 12 (of which,foreign nationals invest) (of which,Hong Kong and Taiwan)
3 In the First Period of Transition (1978-1996) In the First Period of Transition (1978-1996) In the First Period of Transition (1978-1996) In the First Period of Transition (1978-1996) • By 1996, China had developed a tripod industrial structure: state, By 1996, China had developed a tripod industrial structure: state, By 1996, China had developed a tripod industrial structure: state, By 1996, China had developed a tripod industrial structure: state, collective, and private (domestic and foreign) firms each produced about collective, and private (domestic and foreign) firms each produced about collective, and private (domestic and foreign) firms each produced about collective, and private (domestic and foreign) firms each produced about 1/3 of total output. 1/3 of total output. 1/3 of total output. 1/3 of total output
同濟大学 TONGJI UNIVERSITY From 1996 Through the Present A milestone was the adoption of the Company Law in 1994,provided a framework for "corporatizing"SOEs,signaled the beginning of a new round of institutlonal change. traditional SOEs converted into corporation corporation provided an option for new hybrid ownership form the distinct boundaries between ownership forms began to blur
4 From 1996 Through the Present From 1996 Through the Present From 1996 Through the Present From 1996 Through the Present • A milestone was the adoption of the Company Law in 1994, provided a A milestone was the adoption of the Company Law in 1994, provided a A milestone was the adoption of the Company Law in 1994, provided a A milestone was the adoption of the Company Law in 1994, provided a framework for "corporatizing" SOEs framework for "corporatizing" SOEs framework for "corporatizing" SOEs framework for "corporatizing" SOEs, signaled the beginning of a new signaled the beginning of a new signaled the beginning of a new signaled the beginning of a new round of institutional change. round of institutional change. round of institutional change. round of institutional change. traditional SOEs converted into corporation corporation provided an option for new hybrid ownership form the distinct boundaries between ownership forms began to blur
同海大学 TONGJI UNIVERSITY From 1996 Through the Present Sep.1997,15th Communist Party Congress: "grasping the large, attentions were focused on the largest, typlcally centrally controlled firms -and letting the small go" great arthority was given to local government to restructure /privatize/close down their own firms .massive downsizing of state sector,tens of thousands of SOEs and urban collective firms were shut down,laid-off workers totaled 40%of the SOE workforce ,and >2/3 that of the urban collective
5 From 1996 Through the Present From 1996 Through the Present From 1996 Through the Present From 1996 Through the Present • Sep.1997, 15th Communist Party Congress: Sep.1997, 15th Communist Party Congress: Sep.1997, 15th Communist Party Congress: Sep.1997, 15th Communist Party Congress: •massive downsizing of state sector, tens of thousands of SOEs and urban massive downsizing of state sector, tens of thousands of SOEs and urban massive downsizing of state sector, tens of thousands of SOEs and urban massive downsizing of state sector, tens of thousands of SOEs and urban collective firms were shut down, laid-off workers totaled 40% of the SOE collective firms were shut down, laid-off workers totaled 40% of the SOE collective firms were shut down, laid-off workers totaled 40% of the SOE collective firms were shut down, laid-off workers totaled 40% of the SOE workforce ,and >2/3 that of the urban collective. workforce ,and >2/3 that of the urban collective. workforce ,and >2/3 that of the urban collective. workforce ,and >2/3 that of the urban collective. "grasping the large, "grasping the large, "grasping the large, "grasping the large, •and letting the small go" and letting the small go" and letting the small go" and letting the small go" attentions were focused on the largest, attentions were focused on the largest, attentions were focused on the largest, attentions were focused on the largest, typically centrally controlled firms typically centrally controlled firms typically centrally controlled firms typically centrally controlled firms great arthority was given to local great arthority was given to local great arthority was given to local great arthority was given to local government to restructure government to restructure government to restructure government to restructure /privatize/close down their own firms /privatize/close down their own firms /privatize/close down their own firms /privatize/close down their own firms