ABSTRACT
The aim of this chapter is to assess how successfully state-owned enterprises are reformed and reengineered. Profound transformation of state-owned enterprises (SOEs) in China is part and parcel of all-embracing economic reform which includes integration of China into the world economy, monetary policy to maintain employment and balance of payments in equilibrium, currency convertibility, exchange rate determination and management (Lau 1998), redesigning the banking sector (Zhu 1997), a better blend in private and public provision of goods and services (Briand and Kelvin 1997, 1998a; Chan and Kelvin 1998), promotion of stock exchanges and use of international capital markets (Xiao and Kelvin 1998), development of high-tech industries and establishment of venture capital mechanisms, foreign direct investment, bridging the gaps between the Chinese and international accounting systems, and improved taxation.
