ABSTRACT
This chapter focuses on state-owned enterprises (SOEs) reforms in China that have undergone three very distinct stages. In the first stage, which spanned approximately between 1978 and 1984, the efforts of the government were to transform the status of SOEs from workshops of the government into independent economic entities. The second stage spanned between 1985 and 1992. The focus of SOEs reforms during this period was to explore ways of 'separating government from enterprises'. From 1993 onwards, SOEs reforms moved to its third stage. The dominant theme in this stage has been to build modern enterprises in China. However, as a result of the economic drawbacks since the end of 1997, SOEs reforms have somewhat slackened, with the efforts of the government concentrating on relieving SOEs of economic difficulties. After the three phases of economic reforms, SOEs in China have largely been turned into modern enterprises, with the primary purpose of pursuing profits.
