Tuesday, March 02, 2021

Chinese state firms spent about $20 bn buying into private ones in 2019

Let this number sink in! It appears to be a reversal of the more lenient, more pragmatic reform policies of the Deng Xiaoping era, when small, small private businesses were rather tolerated. 

"[$20 billion] The approximate amount of money spent by Chinese state firms buying into private ones in 2019, more than double the amount spent in 2012. Under Xi's leadership, state enterprises have moved to curb the influence of China's private sector, in part by absorbing smaller companies and restructuring their strategies to serve state interests. A recent central-government plan has called for more mergers between state and private companies in the next three years, saying "state-owned enterprises must play a leading role and important influence on the healthy development of private enterprises.""

Wall Street Journal Notes on the News (2/27/2021)

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