The state, enterprises, and society in post-Deng China: Impact of the new round of SOE reform

Asian Survey

Volumn 40, Issue 4, 2000, Pages 641-657

  Hu, Xiaobo ^a  

^a UNIVERSITY OF CALIFORNIA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

CIVIL SOCIETY; ECONOMIC REFORM; POLITICAL REFORM; STATE OWNED ENTERPRISE; STATE ROLE;

CHINA;

EID: 0033790369     PISSN: 00044687     EISSN: None     Source Type: Journal    
DOI: 10.2307/3021186     Document Type: Article

References (56)

1. As used in this article, the ideas of a civil society and society in general refer to those areas of social life - the economic sphere, cultural activities, and political interaction - that are, in Held's words, "organized by private or voluntary arrangements between individuals and groups outside the direct control of the state." David Held, Models of Democracy (Stanford: Stanford University Press, 1987), p. 281.
2. Michael Bernhard, "Civil Society and Democratic Transition in East Central Europe," Political Science Quarterly 108:2 (Summer 1993), pp. 307-26.
3. Gordon White, "Prospects for Civil Society in China: A Case Study of Xiaoshan City," Australian Journal of Chinese Affairs, no. 29 (January 1993), pp. 65-68; and Wang Shaoguang, "Some Reflections on 'Civil Society'" (in Chinese), Ershiyi shiji (Twenty-first century), vol. 8 (December 1991), pp. 102-17.
4. Gordon White, "Prospects for Civil Society in China: A Case Study of Xiaoshan City," Australian Journal of Chinese Affairs, no. 29 (January 1993), pp. 65-68; and Wang Shaoguang, "Some Reflections on 'Civil Society'" (in Chinese), Ershiyi shiji (Twenty-first century), vol. 8 (December 1991), pp. 102-17.
5. Chinese Communist Party (CCP) Central Committee Archives Office, San zhong quanhui yilai (Important documents since the third plenary session) (Beijing: People's Publishing House, 1992); and Zhang Tianrong et al., Zhongguo gaige dacidian (Encyclopedia of China's reform) (Beijing: China's International Broadcasting Publishing House, 1992). See also David Bachman, Fourteenth Congress of the Chinese Communist Party (Boulder, Colo.: Westview Press, 1993).
6. Chinese Communist Party (CCP) Central Committee Archives Office, San zhong quanhui yilai (Important documents since the third plenary session) (Beijing: People's Publishing House, 1992); and Zhang Tianrong et al., Zhongguo gaige dacidian (Encyclopedia of China's reform) (Beijing: China's International Broadcasting Publishing House, 1992). See also David Bachman, Fourteenth Congress of the Chinese Communist Party (Boulder, Colo.: Westview Press, 1993).
7. Chinese Communist Party (CCP) Central Committee Archives Office, San zhong quanhui yilai (Important documents since the third plenary session) (Beijing: People's Publishing House, 1992); and Zhang Tianrong et al., Zhongguo gaige dacidian (Encyclopedia of China's reform) (Beijing: China's International Broadcasting Publishing House, 1992). See also David Bachman, Fourteenth Congress of the Chinese Communist Party (Boulder, Colo.: Westview Press, 1993).
8. Zhang Jianhua, ed., Jiejue Zhongguo zaidu mianlin de jinyao wenti (Solutions to urgent problems China faces again) (Beijing: Economic Daily Press, 2000), pp.136-48; Zhao Zixiang et al., 1998-1999 nian Liaoning sheng shehui jingji xingshi fenxi yu yuce (Analysis of and predictions on socioeconomic status in Liaoning) (Shenyang: Liaoning People's Publishing House, 1999), pp. 5-6, 101-09, 117-27; and Liaoning Provincial People's Government, Liaoning nianjian 1998 (Liaoning yearbook 1998), (Shenyang: Liaoning Yearbook Editorial Office, 1998), pp. 87-89.
9. Zhang Jianhua, ed., Jiejue Zhongguo zaidu mianlin de jinyao wenti (Solutions to urgent problems China faces again) (Beijing: Economic Daily Press, 2000), pp.136-48; Zhao Zixiang et al., 1998-1999 nian Liaoning sheng shehui jingji xingshi fenxi yu yuce (Analysis of and predictions on socioeconomic status in Liaoning) (Shenyang: Liaoning People's Publishing House, 1999), pp. 5-6, 101-09, 117-27; and Liaoning Provincial People's Government, Liaoning nianjian 1998 (Liaoning yearbook 1998), (Shenyang: Liaoning Yearbook Editorial Office, 1998), pp. 87-89.
10. Zhang Jianhua, ed., Jiejue Zhongguo zaidu mianlin de jinyao wenti (Solutions to urgent problems China faces again) (Beijing: Economic Daily Press, 2000), pp.136-48; Zhao Zixiang et al., 1998-1999 nian Liaoning sheng shehui jingji xingshi fenxi yu yuce (Analysis of and predictions on socioeconomic status in Liaoning) (Shenyang: Liaoning People's Publishing House, 1999), pp. 5-6, 101-09, 117-27; and Liaoning Provincial People's Government, Liaoning nianjian 1998 (Liaoning yearbook 1998), (Shenyang: Liaoning Yearbook Editorial Office, 1998), pp. 87-89.
11. Quoted in Zhang Kai, "How Is the CCP Reforming the State-Owned Enterprises?" personal e-mail, December 5, 1999. A July 1999 internal report from the State Economic and Development Commission also laid out the seriousness of the ever-growing debts of SOEs along the economic reform.
12. 1998-1999 nian Liaoning sheng shehui jingji xingshi fenxi yu yuce, pp.103-04.
13. Official from Liaoning Academy of Social Sciences, author interview, Shenyang, June 22, 1999.
14. Researcher from Liaoning Academy of Social Sicences, author interview, Shenyang, June 22, 1999.
15. For a brief review of how SOEs may evade debts and strip state assets through bankruptcy, see Xiaobo Hu, Problems in China's Transitional Economy: Property Rights and Transitional Models (Singapore: Singapore University Press, 1998), pp.19-20.
16. Zhongyu Wang, "State Enterprise Reform in a Major Stage," Beijing Review, March 3-9, 1997, p. 19.
17. Zhao Zhiyang, Guanyu tiaozheng guomin jingji de jige wenti (On adjusting the national economy) (Beijing: People's Publishing House, 1980); Liu Guoguang et al., 80 niandai Zhongguo jingji gaige yu fazhan (Economic reform and development in the 1980s) (Beijing: Economic Management Press, 1991); Li Yining et al., Zouxiang fanrong de zhanlue xuanze (Strategic choice for prosperity) (Beijing: Economic Daily Press, 1991); Wu Jinglian, Jihua jingji haishi shichang jingji (The planned or market economy) (Beijing: Chinese Economic Publishing House, 1993); and Yifu Lin et al., The China Miracle: Development Strategy and Economic Reform (Hong Kong: Chinese University Press, 1996).
18. Zhao Zhiyang, Guanyu tiaozheng guomin jingji de jige wenti (On adjusting the national economy) (Beijing: People's Publishing House, 1980); Liu Guoguang et al., 80 niandai Zhongguo jingji gaige yu fazhan (Economic reform and development in the 1980s) (Beijing: Economic Management Press, 1991); Li Yining et al., Zouxiang fanrong de zhanlue xuanze (Strategic choice for prosperity) (Beijing: Economic Daily Press, 1991); Wu Jinglian, Jihua jingji haishi shichang jingji (The planned or market economy) (Beijing: Chinese Economic Publishing House, 1993); and Yifu Lin et al., The China Miracle: Development Strategy and Economic Reform (Hong Kong: Chinese University Press, 1996).
19. Zhao Zhiyang, Guanyu tiaozheng guomin jingji de jige wenti (On adjusting the national economy) (Beijing: People's Publishing House, 1980); Liu Guoguang et al., 80 niandai Zhongguo jingji gaige yu fazhan (Economic reform and development in the 1980s) (Beijing: Economic Management Press, 1991); Li Yining et al., Zouxiang fanrong de zhanlue xuanze (Strategic choice for prosperity) (Beijing: Economic Daily Press, 1991); Wu Jinglian, Jihua jingji haishi shichang jingji (The planned or market economy) (Beijing: Chinese Economic Publishing House, 1993); and Yifu Lin et al., The China Miracle: Development Strategy and Economic Reform (Hong Kong: Chinese University Press, 1996).
20. Zhao Zhiyang, Guanyu tiaozheng guomin jingji de jige wenti (On adjusting the national economy) (Beijing: People's Publishing House, 1980); Liu Guoguang et al., 80 niandai Zhongguo jingji gaige yu fazhan (Economic reform and development in the 1980s) (Beijing: Economic Management Press, 1991); Li Yining et al., Zouxiang fanrong de zhanlue xuanze (Strategic choice for prosperity) (Beijing: Economic Daily Press, 1991); Wu Jinglian, Jihua jingji haishi shichang jingji (The planned or market economy) (Beijing: Chinese Economic Publishing House, 1993); and Yifu Lin et al., The China Miracle: Development Strategy and Economic Reform (Hong Kong: Chinese University Press, 1996).
21. Zhao Zhiyang, Guanyu tiaozheng guomin jingji de jige wenti (On adjusting the national economy) (Beijing: People's Publishing House, 1980); Liu Guoguang et al., 80 niandai Zhongguo jingji gaige yu fazhan (Economic reform and development in the 1980s) (Beijing: Economic Management Press, 1991); Li Yining et al., Zouxiang fanrong de zhanlue xuanze (Strategic choice for prosperity) (Beijing: Economic Daily Press, 1991); Wu Jinglian, Jihua jingji haishi shichang jingji (The planned or market economy) (Beijing: Chinese Economic Publishing House, 1993); and Yifu Lin et al., The China Miracle: Development Strategy and Economic Reform (Hong Kong: Chinese University Press, 1996).
22. See Ma Licheng and Ling Zhijun, Jiao feng (Confrontation) (Beijing: China Today Publishing House, 1998); and Kevin Platt, "Waves of Discontent Shake China's Leaders," Christian Science Monitor, December 7, 1999, on the World Wide Web at [accessed: December 8, 1999].
23. See Ma Licheng and Ling Zhijun, Jiao feng (Confrontation) (Beijing: China Today Publishing House, 1998); and Kevin Platt, "Waves of Discontent Shake China's Leaders," Christian Science Monitor, December 7, 1999, on the World Wide Web at [accessed: December 8, 1999].
24. Lan Enfa, "Shenyang chushou yi xiaoxing guoyou qiye rechu fengbo" (Disturbance in the sale of a small SOE), Shenyang Daily, March 6, 1998, p. 2.
25. For a broad review of early development of the problem, see Hong Yung Lee, From Revolutionary Cadres to Party Technocrats in Socialist China (Berkeley: University of California Press, 1990).
26. Guan Xiaorong and Wang Ce, "Zhongxiao qiye canquan zhuanran zhong de jige wenti" (Problems in property rights transformation of medium-sized to small enterprises), Shehui kexue jikan (Journal of social sciences), no. 6 (1998), pp. 88-91; and Zou Yimin, "Reform of the Township and Village Enterprises: The New Trend" (in Chinese), Jingji yanjiu (Economic studies) (February 1999).
27. Guan Xiaorong and Wang Ce, "Zhongxiao qiye canquan zhuanran zhong de jige wenti" (Problems in property rights transformation of medium-sized to small enterprises), Shehui kexue jikan (Journal of social sciences), no. 6 (1998), pp. 88-91; and Zou Yimin, "Reform of the Township and Village Enterprises: The New Trend" (in Chinese), Jingji yanjiu (Economic studies) (February 1999).
28. The Editorial Committee of Chinese Communism Yearbook, Zhonggong nianpao 1998 (Yearbook of Chinese communism 1998) (Taipei: Zhonggong Yanjiu Zazhishe, 1998), section 6, p. 13.
29. Andrew MacIntyre, ed., Business and Government in Industrializing Asia (Ithaca, N.Y.: Cornell University Press, 1994); B. C. Koh, Japan's Administrative Elite (Berkeley: University of California Press, 1989); and Tuvia Blumenthal, "The Practice of Amakudari within the Japanese Employment System," Asian Survey 25:3 (March 1985), pp. 310-21.
30. Andrew MacIntyre, ed., Business and Government in Industrializing Asia (Ithaca, N.Y.: Cornell University Press, 1994); B. C. Koh, Japan's Administrative Elite (Berkeley: University of California Press, 1989); and Tuvia Blumenthal, "The Practice of Amakudari within the Japanese Employment System," Asian Survey 25:3 (March 1985), pp. 310-21.
31. Andrew MacIntyre, ed., Business and Government in Industrializing Asia (Ithaca, N.Y.: Cornell University Press, 1994); B. C. Koh, Japan's Administrative Elite (Berkeley: University of California Press, 1989); and Tuvia Blumenthal, "The Practice of Amakudari within the Japanese Employment System," Asian Survey 25:3 (March 1985), pp. 310-21.
32. Song Xiaowu et al., Zhongguo shehui baozhang zhidu jianshe ershi nian (Twenty years of Chinese social welfare system) (Zhengzhou: Zhongzhou Guji Press, 1998), p. 14.
33. Liaoning Provincial Statistics Bureau, Liaoning tongji nianjian 1998 (Statistical yearbook of Liaoning) (Beijing: China Statistical Publishing House, 1998), p. 45.
34. The Liaoning government has reported that 435,000 workers were registered as unemployed in 1997 for a 3.7% unemployment rate. See Statistical Yearbook of Liaoning: 1998 (Liaoning tongji nianjian 1998), p. 76. However, some economists and government officials in Liaoning reported that the laid-off workers constituted at least 7.5% of the labor force. Combining the figures on registered unemployed workers with those for workers who have been laid-off but are not registered as unemployed, it is usually estimated that the unemployment rate is above 10%. It is important to remember that these are official statistics, which understandably are much lower than other estimates. For a superb discussion on unemployment rates, see Angang Hu, "Employment and Development: China's Employment Problem and Employment Strategy" in Transition towards Post-Deng China, eds. Xiaobo Hu and Gang Lin (Singapore: Singapore University Press, forthcoming), pp. 24-45.
35. The Liaoning government has reported that 435,000 workers were registered as unemployed in 1997 for a 3.7% unemployment rate. See Statistical Yearbook of Liaoning: 1998 (Liaoning tongji nianjian 1998), p. 76. However, some economists and government officials in Liaoning reported that the laid-off workers constituted at least 7.5% of the labor force. Combining the figures on registered unemployed workers with those for workers who have been laid-off but are not registered as unemployed, it is usually estimated that the unemployment rate is above 10%. It is important to remember that these are official statistics, which understandably are much lower than other estimates. For a superb discussion on unemployment rates, see Angang Hu, "Employment and Development: China's Employment Problem and Employment Strategy" in Transition towards Post-Deng China, eds. Xiaobo Hu and Gang Lin (Singapore: Singapore University Press, forthcoming), pp. 24-45.
36. Song et al., Zhongguo shehui baozhang zhidu jianshe ershi nian, pp.91, 161-64.
37. Former Dalian Crane Factory worker, author interview, Shenyang, June 20, 1999.
38. See for example "Financial News," Liaohe zaobao, October 18, 1999, on the World Wide Web at [accessed October 19, 1999]; "Checha qianxin qiye, fangfan laozi jiufeng" (Check on the enterprises that owe workers wages, prevent from capital-labor disputes), Workers Daily, February 3, 2000, on the World Wide Web at [accessed: February 4, 2000]; and Zhou Ruipeng, "Zhengfu qiye 'fudan feichang zhong'" (SOEs' heavy burden), Liaohe zaobao, March 3, 2000, on the World Wide Web at [accessed: March 8, 2000].
39. See for example "Financial News," Liaohe zaobao, October 18, 1999, on the World Wide Web at [accessed October 19, 1999]; "Checha qianxin qiye, fangfan laozi jiufeng" (Check on the enterprises that owe workers wages, prevent from capital-labor disputes), Workers Daily, February 3, 2000, on the World Wide Web at [accessed: February 4, 2000]; and Zhou Ruipeng, "Zhengfu qiye 'fudan feichang zhong'" (SOEs' heavy burden), Liaohe zaobao, March 3, 2000, on the World Wide Web at [accessed: March 8, 2000].
40. See for example "Financial News," Liaohe zaobao, October 18, 1999, on the World Wide Web at [accessed October 19, 1999]; "Checha qianxin qiye, fangfan laozi jiufeng" (Check on the enterprises that owe workers wages, prevent from capital-labor disputes), Workers Daily, February 3, 2000, on the World Wide Web at [accessed: February 4, 2000]; and Zhou Ruipeng, "Zhengfu qiye 'fudan feichang zhong'" (SOEs' heavy burden), Liaohe zaobao, March 3, 2000, on the World Wide Web at [accessed: March 8, 2000].
41. For further information, see Zhonggong nianpao 1998, section 7, pp. 65-68; and Song et al., Zhongguo shehui baozhang zhidu jianshe ershi nian, pp. 73-93.
42. For further information, see Zhonggong nianpao 1998, section 7, pp. 65-68; and Song et al., Zhongguo shehui baozhang zhidu jianshe ershi nian, pp. 73-93.
43. "Woguo 'liangge quebao' jiben shixian" (Two "guarantees" basically realized), People's Daily, January 10, 2000, p. 2. Calculation based on the information obtained from the Office of Leadership Group on Employment in Shenyang Municipal Government, and Liaoning Academy of Social Sciences, June 1999. For a similar account, see Zhonggong nianpao 1998 (Yearbook of Chinese communism), section 7, p. 66.
44. "Woguo 'liangge quebao' jiben shixian" (Two "guarantees" basically realized), People's Daily, January 10, 2000, p. 2. Calculation based on the information obtained from the Office of Leadership Group on Employment in Shenyang Municipal Government, and Liaoning Academy of Social Sciences, June 1999. For a similar account, see Zhonggong nianpao 1998 (Yearbook of Chinese communism), section 7, p. 66.
45. For example, there was a large-scale protest involving some 20,000 miners and their families in Yangjiazhangzi, Liaoning Province. It was sparked by anger at low redundancy payments. See "Chinese Miners in Mass Riot," BBC News, April 4, 2000, on the World Wide Web at [accessed: April 5, 2000].
46. Official from Liaoning Provincial Government, author interview, Shenyang, June 23, 1999.
47. Official from Shenyang Municipal Government, author interview, Shenyang, June 23, 1999.
48. "Briefs," China Daily, February 21, 1998, p. 2.
49. "A Decision on Several Issues Relating to Reform of the State-Owned Enterprises" (in Chinese), People's Daily, September 23, 1999, on the World Wide Web at [accessed: April 23, 2000].
50. Erik Eckholm, "Chinese Restate Goals to Reorganize State Companies," New York Times, September 23, 1999. See also Lin Shaoting and Wu Yiyi, "Enterprise Reform Undecided During Central Committee Meeting," CND News Report, September 21, 1999; and Yan Wang and Yin De An, "Chinese Premier Zhu Rongji in Shaky Position," ibid., September 26, 1999.
51. Erik Eckholm, "Chinese Restate Goals to Reorganize State Companies," New York Times, September 23, 1999. See also Lin Shaoting and Wu Yiyi, "Enterprise Reform Undecided During Central Committee Meeting," CND News Report, September 21, 1999; and Yan Wang and Yin De An, "Chinese Premier Zhu Rongji in Shaky Position," ibid., September 26, 1999.
52. Erik Eckholm, "Chinese Restate Goals to Reorganize State Companies," New York Times, September 23, 1999. See also Lin Shaoting and Wu Yiyi, "Enterprise Reform Undecided During Central Committee Meeting," CND News Report, September 21, 1999; and Yan Wang and Yin De An, "Chinese Premier Zhu Rongji in Shaky Position," ibid., September 26, 1999.
53. "Zhongguo caijing zhengce saomiao" (A review of China's financial policies), Hainan Daily, February 1, 2000, on the World Wide Web at [accessed February 1, 2000]; and Shaoguang Wang, Angang Hu, and Xiaoguang Kang, State Capacity and Regional Disparities (Armonk, N.Y.: M. E. Sharpe, 1998).
54. "Zhongguo caijing zhengce saomiao" (A review of China's financial policies), Hainan Daily, February 1, 2000, on the World Wide Web at [accessed February 1, 2000]; and Shaoguang Wang, Angang Hu, and Xiaoguang Kang, State Capacity and Regional Disparities (Armonk, N.Y.: M. E. Sharpe, 1998).
55. Zhou Ruipeng, "Zhu Rongji: Chinese Civil Servants Will Receive Salary Raise Continually in the Next Three Years" (in Chinese), Lianhe zaobao, January 8, 2000, on the World Wide Web at [accessed January 7, 2000].
56. "Guoqi niukui jiaxun pinchuan" (Good news about loss-turn-to-profit SOEs), People's Daily, February 29, 2000, on the World Wide Web at [February 29, 2000].