Saturday, June 25, 2005

Is it good for political units in China to sponsor private entities?

During the transition and before the conglomerates can be reformed/re-engineered to conduct their businesses by commercial principles sponsorship by the state political units will ensure the "change" to conduct smoothly. The "change" will affect moral of staff, welfare as well as profitability of the conglomerates. In China originally state owned conglomerates can be very large with hundred of thousand of staff and their families (sometime even the
whole town, a small city) who have been well looked after by the provincial governments. If the "change" is not smooth social and political unrest will affect central government leadership.

No comments:

Post a Comment