Economic Structures and Changes in Rural Enterprises in China at the End of the Twentieth Century: The Privatization of Enterprises

From “fat pigs” and “red hats” to a “new social stratum”

“…This can be explained by the historical ties with state-owned enterprises (SOEs) that persisted until reform of this sector was initiated, in particular the "releasing" of smaller SOEs, from 1995SOEs, from -1996SOEs, from through to 2001SOEs, from -2002. Local government, through TVE Bureaus, also had historical ties with collectively-owned township and village enterprises which have disappeared following privatisation of many of these ventures (Li and Rozelle, 2003;Taubmann et al, 2003). City and council governments, in other words, were asked in 2003 to design and establish a support system, consisting of public and private institutions and a range of services and inputs, aimed at private enterprises; even though their experience had been of co-ordinating and directing the production decisions of state-owned and collective enterprises.…”

“…This "quiet JSBED 15,4 revolution" has come about through de facto, "bottom-up" decisions to start and transform enterprises, as well as "top-down" policies to privatise state-owned and collective enterprises. The growing importance of the private sector to growth and development has been characterised as the third major institutional transformation of the post-1978 reform period (Garnaut et al, 2001;Green and Liu, 2005;Taubmann et al, 2003).…”

Toward an institutional ecology of establishment of foreign firms in the Chinese construction industry

“…In particular, socioeconomic and political ties can bestow legitimacy, asset control and resources on firms and this process is more prominent in the postcommunist countries, where institutional renovations take place in relatively short time periods (McDermott 2008). We also recognize that the competitiveness of privately-owned enterprises is damaged by the bureaucratic process for private firm registration, licenses for business operation in some restricted sectors, impediments for getting loans from banks, which mostly are owned by state, and some special policy restrictions, local taxation and fees, and local discrimination against POEs (Garnaut et al 2001;Garnaut and Song 2003;Taubmann, Heberer, and Jie 2003).…”

“…As private property rights in China have suffered from serious violations since 1949 (see Garnaut et al 2001), the political or institutional hostility, or its inertia against private ownership in regions remaining in the old planned system, is evident. Specifically, bureaucratic processes for JV registration, licenses for business operation in some restricted sectors, impediments for getting loans from banks mostly owned by states, some special policy restrictions, local taxation and fees, local discrimination against private ownership, and restriction to certain market segments against foreign firms are relevant to the legitimation issue here (Garnaut et al 2001;Garnaut and Song 2003;Taubmann, Heberer, and Jie 2003;Shen et al 2006). The more influential the state is in transition economies, as a consequence, the more the proliferation of foreign firms will be harmed.…”

Membership of Chinese Farmer Specialized Cooperatives and Direct Subsidies for Farmer Households: A Multi-Province Data Study

“…FSCs brought together scattered small-scale farmer households, allowing economies of scale to be achieved, and increasing bargaining power with buyers, whilst reducing transaction costs (Taubmann et al 2003;Zheng et al 2011). Realising the potential, the government began to adopt supportive strategies and policies.…”