WSJ: Just how powerful are China’s state-owned firms?
A new report released by the U.S.-China Economic and Security Review Commission (USCC) says that state-owned and state-controlled companies make up about 50% of China’s economy.
If this seems a bit “anti-capitalist,” that may be because, according to the report: “China’s communist party isn’t interested in the country ‘becoming a bastion of free market enterprise.’” China’s large cache of state-owned firms helps Beijing pursue unfair and inequitable procurement and trade practices, which wind up hurting Chinese trade partners – like the U.S.
“The [Chinese] firms can compete unfairly internationally… because they can get below-market interest rates from state owned banks, favorable tax treatments and capital injections if they run into trouble.”
In the article, United Steelworkers (USW) International President Leo Gerard also pointed out: “Having state-owned enterprises doing business in the U.S. presents many risks… Chinese state-owned enterprises have advantages that most shareholder-owned companies do not, which creates an unfair and uncompetitive market.”
Click here for the Wall Street Journal article.
Click here to read the full report (pdf).
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