tag:blogger.com,1999:blog-6365320.post8518989208861572169..comments2023-05-23T13:50:47.414+02:00Comments on China Herald: Zhang Lijia on political reforms - Hangout-on-airChina Heraldhttp://www.blogger.com/profile/12661962166788808674noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6365320.post-76624709875576883802012-05-25T08:25:35.621+02:002012-05-25T08:25:35.621+02:00The problem with reform in China is that there are...The problem with reform in China is that there are too many vested personal interests in too many SOEs. When SOEs are 90% of China's biggest and most strategic companies, that's a huge problem. (India to compare has SO involvement in just 10% of its companies). Getting reform into place in areas where SOEs need reform - weaning them off state subsidies for example - is going to attract a lot of resistance. So instead of economic, social and commerical considerations influencing reform, its all cronyism, political influence instead. I can't think of any government anywhere that ever was really that good at running businesses - and I don't think the Chinese are going to break that mold either. No reform at SOEs - being much of China's economy - no reform in China. Not good and I can't see how they're goingt o overcome that.Chris Devonshire-Ellishttp://www.baronyofcoigach.comnoreply@blogger.com