Top Posters
Since Sunday
New Topic  
Posts: 27
Rep: 0 0
5 months ago
What is an SOE? What is its importance in China?
Source  Download
Business and Its Environment
Edition: 7th
Read 18 times
1 Reply
Answer verified by a subject expert
Posts: 188
5 months ago
Sign in or Sign up in seconds to unlock everything.
The SOE is a unique entity that has represented the single most important type of company in China in terms of employment, as well as in problems for the country. The SOEs are not the future of the Chinese economy, however, nor have they been responsible for China's growth in the reform era. Economic growth has been fueled on the demand side by both domestic and export demand and on the supply side by foreign direct investment and local companies formed by entrepreneurs and local governments. Strong economic growth has been essential for China, since growth absorbed the unemployed as SOEs were forced to improve their efficiency. China has privatized many of the SOEs, but in 2008 there were still 154,000 SOEs. The SOEs held 44 percent of the assets in the industrial sector. With the consolidation of SOEs their average size has increased dramatically, in part because of continued government support and funding. The labor policies of the SOEs were the heart of the socialist economic system and gave SOEs a distinctive dual purpose. In addition to production, SOEs provided virtually all the major social services required by employees, their families, and retirees, including education, health care, and housing. Moreover, because many goods such as housing and food staples were rationed, workers could only receive necessities through enterprise-issued coupons. This set of services essentially served as China's social welfare system and became known as the iron rice bowl. A major constraint on the Chinese government's willingness to take strong measures to reform SOEs has been the lack of social security and welfare systems for its citizens.
This verified answer contains over 260 words.
Related Topics
New Topic      
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  191 People Browsing
Your Opinion
Where do you get your textbooks?
Votes: 98

Related Images

▶️ Video: Inflammation Animation

For a complete list of videos, visit our video library