Private salvation?
Article Abstract:
Zhongshan, Guangdong, China, has seen the development of a numberof factories and private enterprise has come to predominate. Thereis a tradition of capitalism, and kin-based businesses. The private sector has grown to account for 75% of China's workforce. Deficiencies in the legal system could hamper the development of large private sector companies. Personal relationships are important due to a lack of legal protection and the need for trust.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 2000
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Tangled web
Article Abstract:
Personal relationships are important in business in China, and are called guanxi, and are an alternative to developing a rules-based economy. Establishing rules and enforcing them can be expensive, in terms of high fixed costs. Local markets cannot easily join up to form strong regional or national economies without a rules-based economy. There are problems in making a transition to a rules-based economy since insiders can perceive opportunities for looting.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 2000
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The honeycomb of corruption
Article Abstract:
Corruption is very difficult to tackle in China, and calling attention to the problem could lead to questions about the political system. State ownership used to predominate, with local governments in control of public assets, and few money transcations involved for state companies. This has changed, with a reduction in control and state firm managers in a position to capture private property. State ownership can also lead to resources being allocated inefficiently.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 2000
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