Beijing needs to be bolder with SOE reform

The government wants to merge state companies in sectors with overcapacity, yet doesn’t want them to cut jobs. It's asking for trouble.

Beijing needs to be bolder with SOE reform

Wholesale industrial reform often leaves blue-collar workers as its biggest victims. Just look at the empty factories and houses across the rust belt US states of Michigan, Illinois, and Ohio. Their decline is a consequence of cross-border trade deals that gave countries that could build better and cheaper cars access to the world’s largest economy.  

China’s government is facing similar problems with its own increasingly redundant heavy industries. Many state-owned enterprises in the iron...

To continue reading, please login or register for free

Click for more on: distressed debt | china | politics | industrials

Print Edition

FinanceAsia Print Edition

CONFERENCES