ABSTRACT
This chapter provides a brief survey of the latest Chinese attempt to remove the bureaucracy from public enterprise, which is quite relevant to the issues raised and heatedly discussed under the topic of privatisation. Public ownership plays a dominant part in the Chinese economy. Most Chinese economists agree that in the transition from central planning to the model of ‘The State Regulates Market and Market Guides Enterprises’, a reconstruction of the economic foundation is inevitable. Two Chinese economists suggested mixed shares economy: that is, to divide the single state-run enterprise into three sectors—the state, the enterprise, and individual mixed ownership—with each party holding a certain amount of shares. The state-owned industrial enterprises account for only a fifth of the total number of industrial enterprises, but they are usually much larger in scale. The debate on public shares economy is still going on in China and has been depending the discussion of reconstruction of the micro-economic foundation.
