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In recent years both domestic and foreign critics have argued that resurgent state-owned enterprises (SOEs) threaten China's economic growth prospects, impede the progress of the private sector and foreign firms in China, and create an unfair competitive environment abroad. Yet the data conclusively show that the state's role in the Chinese economy continues to shrink, while the private sector is still growing rapidly.
Is the power of Chinese state capitalism exaggerated? Or do state firms really pose an obstacle to economic growth and fair competition? Arthur Kroeber, managing director of economic research firm GaveKal Dragonomics and editor of the China Economic Quarterly, will try to resolve the conundrum.
