Chinese SOEs restructuring phases transformer factory in Baoding Tianwei Group 600 employees a nice calm recently two weeks ago, the company seems unable to close down the company announced. repayment of loans worth approximately 13 million euros, the government says it will not interfere this is a new phenomenon that should be Beijing Tianwei Group rejected the rescue of the first state-owned enterprises Beijing crystal clear message sent to other state-owned enterprises: To begin to operate efficiently, or so that more companies go bankrupt, but not after Chinese media reported that rescue Baoding days, sources said, China Construction Bank, or save the emperor.
Meanwhile, state-owned enterprises related to the policy swing continues. Just a few days ago, the media reported that Beijing intends to integrate 100 large state-owned enterprises into 40, but later played down the SASAC oversees state-owned enterprises move, saying such information not to interview them or verify some related companies also denied.
Former Chinese Premier Zhu Rongji realized 15 years ago that SOE reform is not easy. He wants a strong state-owned enterprises to accept more competition in the market, that is his to promote China's WTO for a reason. At that time, as now, is generally considered , sometimes arduous task of restructuring state-owned enterprises will not reach a consensus in the Communist Party.
However, each time after the introduction of new initiatives, state-owned enterprises will lose some breathing space. Speed according to the National Development and medium enterprises, the government is able to SOE issued an ultimatum. There is more pressure from other areas. China has the highest corporate debt in the world. As a result, the government seems to have enough reasons to implement a controlled bankruptcy of some state-owned enterprises, to let go of some hot air bubble. for some business failures, make other businesses immediately realize socialism with Chinese characteristics does not mean companies do not have to make money.